RICS Publishes Updated Global Standard on ESG and Sustainability in Commercial Property Valuation

Professional standards paper by RICS (2026) | Asset Management, Risk Mitigation, Valuation

Curator: Alexandra Faciu

Montréal, Canada

This post is accessible to all readers.

Why we recommend it: The new RICS ESG and Sustainability Valuation Standard delivers clearer, more consistent integration of ESG factors into commercial property valuations worldwide. It enhances transparency for investors and lenders, strengthens the credibility of valuation advice, and aligns practice with rapidly evolving regulatory expectations. Jurisdiction‑specific guidance improves applicability in key markets, while clearer boundaries between valuation and ESG advisory reduce risk and ambiguity. The emphasis on proportionality ensures the framework works across diverse asset types and market maturities. Practical direction on ESG‑related cost assumptions and a consolidated KPI set support more robust analysis, better data use and improved decision‑making.

Key takeaways:

- The Royal Institution of Chartered Surveyors (RICS) has released the fourth edition of its global professional standard on ESG and sustainability in commercial property valuation, marking a significant evolution in how the profession incorporates environmental, social, and governance considerations into valuation practice. Coming into force on April 30, 2026, the updated standard provides a clear and practical framework to ensure ESG factors are consistently and appropriately reflected in valuation advice across global markets.

- This revision responds to the rapid regulatory, market, and professional developments that have reshaped expectations around sustainability in recent years. It reinforces the central role of valuation in commercial real estate and acknowledges that ESG considerations are now integral to investment and lending decisions. Fully aligned with the mandatory requirements of the RICS Red Book and the International Valuation Standards, the new edition provides detailed guidance on how valuers should assess ESG factors when they are material to value.

- Several enhancements distinguish this edition. For the first time, RICS has introduced jurisdiction‑specific guidance for the UK, EU and Australia, recognizing the maturity of regulatory and disclosure frameworks in these markets. The standard also draws a clearer line between valuation and broader ESG advisory work, emphasizing that strategic sustainability advice typically constitutes a separate professional service.

- A strong focus on proportionality ensures the guidance can be applied across diverse asset types, market conditions and levels of ESG maturity. The standard also provides practical direction on how ESG‑related capital and operational expenditure should be treated within valuations, while clarifying the limits of a valuer’s role in forecasting or validating technical performance. To support global consistency, RICS has consolidated a list of typical ESG‑related KPIs that valuers may encounter in practice.

Overall, the fourth edition represents a significant step in embedding ESG considerations into mainstream valuation practice. It sets clear expectations for valuers, supports more transparent and informed decision‑making, and aligns the profession with the accelerating global shift toward sustainable real estate.

To access the standard and supporting documents click 🔗 this link.

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