RICS Knowledgebase

The updated 2025 Red Book Global Standards for the first time includes mandatory consideration of significant Environmental Social and Governance (ESG) at the terms of engagement, inspection and investigation and reporting stages of a valuation. This incorporates International Valuation Standards (IVS) effective from the same date. 

It is recognised that there are particular ESG considerations relevant to the valuation of real property interests and a detailed standalone section has therefore been included at VPGA 8 (section 3 from page 151). VPGA 8 3.7.4 includes a list of example factors that may be relevant and 3.7.7 notes that:

3.7.7 When considering the effects of ESG factors influencing the value of real property interests, additional stakeholders might need to be taken into consideration, such as property users, occupiers and property management. The valuer may need to consider a range of market information that might be influenced by ESG factors, such as but not limited to void periods, capital incentives, rent-free periods, lease length, capital and operational expenditure, operational income and the market’s perception of property management and service quality.

We are also currently in the process of updating the RICS Sustainability and Commercial Property Valuation professional standard further to previous consultation and the 4th edition is expected in Q1 of 2026 

RICS professional standards and IVS are principles based and do not include specific case study examples given the range of valuation circumstances that might exist. The valuer takes overall responsibility for applying their professional judgement to make decisions on the valuation process and outcome.

You may find further useful information at the RICS Sustainability hub. We also host a community of valuation, built and natural environment stakeholders at myRICS community