The Royal Institution of Chartered Surveyors (RICS) has published the fourth edition of its global professional standard on ESG and sustainability in commercial property valuation. The new edition sets out a clear, practical framework for how environmental, social and governance (ESG) factors should be reflected in valuation advice worldwide.
Effective from 30 April 2026, the updated standard:
+ responds to significant regulatory, market and professional developments since the previous edition.
+ reinforces the role of valuation at the heart of global commercial property markets and
+ recognises the importance of sustainability considerations in the valuations that support investment and lending decisions.
The revised standard applies to all RICS members and firms undertaking commercial property valuations globally. It aligns with mandatory requirements in RICS Valuation Global Standards (the “Red Book”) and International Valuation Standards (IVS), whilst providing guidance on how ESG and sustainability should be assessed where they are significant factors in valuation.
The fourth edition includes several key enhancements:
+ New jurisdiction-specific sections for the UK, EU and Australia, reflecting established regulatory and disclosure frameworks in those markets.
+ Clarifies distinction between valuation and strategic ESG advice – confirming that strategic ESG advice is typically a separate, additional service and should not be confused with valuation
+ Emphasis on proportionality and professional judgement, ensuring the standard is workable for different asset types, valuation risks and market maturity
+ Practical guidance on cost assumptions in valuations, clarifying when and how capital and operational expenditure linked to ESG factors may be reflected in valuation, and the limits of a valuer’s role in this.
+ A consolidated global list of typical ESG-related KPIs
Sam Carson, head of sustainability for valuation and advisory services at CBRE UK and lead author of the standard, worked alongside a global expert group of valuers, sustainability specialists and academics to ensure the guidance reflects real-world practice and evolving market expectations.
Charles Golding at RICS, said: “The publication of this professional standard continues the leadership of RICS on sustainability, providing clear and practical recommendations and guidance for commercial property valuers, including on the application of global standards, jurisdiction specific coverage and key ESG performance indicators.
“This is a standard built on expert insight and consultation, relevant to the evolving consideration and regulation of sustainability globally, supporting our members in providing clients with relevant, contemporary advice that aligns with the wider public interest.”
Read the orginal article: https://propertyindustryeye.com/rics-publishes-new-guidance/?utm_source=rss&utm_medium=rss&utm_campaign=rics-publishes-new-guidance
