ifrs-s2-ibg-volume-37-real-estate-services-part-b

Title: Volume 37—Real Estate Services

Category: Part B—Industry-based Guidance for IFRS S2

Source: IFRS Foundation (https://www.ifrs.org)

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PDF: https://www.ifrs.org/content/dam/ifrs/publications/pdf-standards-issb/english/2023/issued/part-b/ifrs-s2-ibg-volume-37-real-estate-services-part-b.pdf?bypass=on

Year: 2023

Type: Industry

Industry-based Guidance on implementing

Climate-related Disclosures

Volume 37—Real Estate Services

June 2023

IFRS S2

IFRS

® Sustainability Disclosure Standard

International Sustainability Standards Board

This Industry-based Guidance accompanies IFRS S2 Climate related Disclosures (published

June 2023; see separate booklet) and is issued by the International Sustainability

Standards Board (ISSB).

Disclaimer: To the extent permitted by applicable law, the ISSB and the IFRS Foundation

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IFRS S2 CLIMATE-RELATED DISCLOSURES–JUNE 2023

Introduction

This volume is part of the Industry-based Guidance on Implementing IFRS S2 Climate-related

Disclosures. This guidance suggests possible ways to apply some of the disclosure requirements in

IFRS S2 but does not create additional requirements.

This volume suggests possible ways to identify, measure and disclose information about

climate-related risks and opportunities that are associated with particular business

models, economic activities and other common features that characterise participation in

this industry.

This industry-based guidance has been derived from Sustainability Accounting Standards

Board (SASB) Standards, which are maintained by the International Sustainability

Standards Board (ISSB). The metric codes used in SASB Standards have been included for

ease of reference. For additional context regarding the industry-based guidance contained

in this volume, including structure and terminology, application and illustrative

examples, refer to Section III of the Accompanying Guidance to IFRS S2.

IFRS S2 INDUSTRY-BASED GUIDANCE

Volume 37—Real Estate Services

Industry Description

Real Estate Services industry entities provide a range of services to real estate owners,

tenants, investors and developers. Primary services include property management,

brokerage, appraisal and information services for real estate owners. Property

management services may include leasing, tenant relations, building maintenance and

building security. Many entities also provide brokerage services, facilitating sales and

leasing transactions. Appraisals and other advisory or information services are other

specialised services commonly provided to clients. Entities in the industry play important

roles in the real estate value chain, which is a substantial part of the global economy.

Sustainability Disclosure Topics & Metrics

Table 1. Sustainability Disclosure Topics & Metrics

TOPIC

METRIC

CATEGORY

UNIT OF

MEASURE

CODE

Table 1. Sustainability Disclosure Topics & Metrics

TOPIC

METRIC

CATEGORY

UNIT OF

MEASURE

CODE

Sustainability

Services

Revenue from energy and sustainability

services 53

Quantitative

Presentation

currency

IF-RS-410a.1

(1) Floor area and (2) number of

buildings under management provided with energy and sustainability services Quantitative Square metres (m²),Number IF-RS-410a.2

(1) Floor area and (2) number of buildings under management that obtained an energy rating Quantitative Square

buildings under management that obtained an energy rating Quantitative Square metres (m²),Number IF-RS-410a.3 Table 2. Activity Metrics

ACTIVITY METRIC

CATEGORY

UNIT OF

MEASURE

CODE

Number of property management clients, categorised by:

(1) tenants and (2) real estate owners Quantitative Number IF-RS-000.A Floor area under management with owner operational control 54 Quantitative Square metres (m²) IF-RS-000.B Number of buildings under management with owner operational control 55 Quantitative

IF-RS-000.B Number of buildings under management with owner operational control 55 Quantitative Number IF-RS-000.C continued...

53 Note to IF-RS-410a.1 – The entity shall provide a description of the energy and sustainability services it offers.

54 Note to IF-RS-000.B – The scope of floor area under management with owner operational control shall only include that portion of gross rentable floor area where property management services

shall only include that portion of gross rentable floor area where property management services are provided and for which the real estate owner has operational control, where operational control is defined consistent with the 2018 GRESB® Real Estate Assessment Reference Guide as

“having the ability to introduce and implement operating policies, health and safety policies,

and/or environmental policies.”55

and/or environmental policies.”55 Note to IF-RS-000.C – The scope of buildings under management shall only include distinct buildings or real estate assets where property management services are provided and for which the real estate owner has operational control, where operational control is defined consistent with the 2018 GRESB® Real Estate Assessment Reference Guide as “having the ability to introduce and implement operating policies, health and safety policies, and/or environmental

introduce and implement operating policies, health and safety policies, and/or environmental policies.”

IFRS S2 CLIMATE-RELATED DISCLOSURES–JUNE 2023© IFRS Foundation 3

...continued

ACTIVITY METRIC

CATEGORY

UNIT OF

MEASURE

CODE

Number of leases transacted, categorised by: (1) tenants and (2) real estate owners 56 Quantitative Number IF-RS-000.D Number of appraisals provided Quantitative Number IF-RS-000.E Sustainability Services Topic Summary In the Real Estate Services industry, buildings owned or occupied by clients generally have significant sustainability impacts. Buildings, and the activities that take place

have significant sustainability impacts. Buildings, and the activities that take place within them, drive energy consumption, direct and indirect greenhouse gas (GHG) emissions, water consumption, waste generation and indoor environmental quality concerns that can impact occupant health. Entities have an opportunity to improve the sustainability impacts of buildings and their operations through sustainability- related

sustainability impacts of buildings and their operations through sustainability- related services. These services may include utility data management, energy procurement,

energy and water benchmarking, resource efficiency improvements, activities related to sustainability certifications, and sustainability consulting and training. Entities may impact building sustainability further by arranging leases that incentivise both owners

impact building sustainability further by arranging leases that incentivise both owners and tenants to improve sustainability performance, while yielding financial benefits for both parties. Providing these services may drive new revenue growth and increase client retention. Effective sustainability services may benefit owners or tenants through improved asset values, increased tenant demand, decreased operating costs and improved tenant experiences.

Metrics

tenant experiences.

Metrics IF-RS-410a.1. Revenue from energy and sustainability services 1 The entity shall disclose its revenue from energy and sustainability services.

1.1

Energy and sustainability services are defined as services provided to clients directly related to resource efficiency (including energy, water and waste), utility data management, energy procurement, obtaining and retaining sustainability and resource-related certifications, environmental

retaining sustainability and resource-related certifications, environmental reporting and corporate sustainability consulting and training.

1.1.1

Examples of energy and sustainability services include energy management and performance monitoring (for example, through sub-meters to measure electric usage); energy, water, and waste benchmarking or ratings-scheme services; advisory services related to renewable energy procurement; services related to LEED,

ENERGY

STAR®or other

to renewable energy procurement; services related to LEED,

ENERGY

STAR®or other sustainability-related building certifications; energy- and sustainability-related building valuation analysis; and energy- and sustainability-related client training or consulting.

56 Note to IF-RS-000.D – Dual agency transactions shall be included in both the (1) tenants and

(2) real estate owners categories. Subleases shall only be included in the (2) real estate owners category.

IFRS S2 INDUSTRY-BASED GUIDANCE

category.

IFRS S2 INDUSTRY-BASED GUIDANCE 4© IFRS Foundation

1.2

The scope of energy and sustainability services excludes services that impart improved energy and sustainability performance in an ancillary,

indirect or minimal way, as well as environmental services that are part of the ordinary operation and maintenance of buildings (for example,

facilities maintenance or janitorial services).

2 The scope of disclosure includes services provided to leasing clients, project- and development-service clients, and capital market and investment management

development-service clients, and capital market and investment management clients.

Note to IF-RS-410a.1 1 The entity shall provide a description of the energy and sustainability services offered, where relevant information includes:

1.1

The degree to which the entity integrates energy and sustainability services into, or keeps these services distinct from, the entity’s base property management services. Property management services may

property management services. Property management services may include the sales process for such services, the amount of overlap between clients for base property management services and energy and sustainability services, and the level of consistency of contract lengths and terms among base property management services and energy and sustainability services.

1.2

The market dynamics of energy and sustainability services, including

sustainability services.

1.2

The market dynamics of energy and sustainability services, including competition, risks and opportunities, market share, customer demands and preferences, market growth and legislative and regulatory impacts.

1.3

Opportunities associated with providing market-leading energy and sustainability services, such as the potential to win a new client based solely on energy and sustainability services, which may result in additional

solely on energy and sustainability services, which may result in additional non-energy and sustainability-related services in the future.

1.4

Risks associated with providing inadequate or insufficient energy and sustainability services, such as the potential to lose a client based on inadequate or insufficient energy and sustainability services.

2 The entity may disclose the number of energy- and sustainability-accredited professionals it employs.

professionals it employs.

3 The entity may disclose the estimated energy savings, greenhouse gas (GHG) emissions reductions, water savings, waste reductions or other performance measurements associated with the energy and sustainability services provided to clients.

IF-RS-410a.2. (1) Floor area and (2) number of buildings under management provided with energy and sustainability services 1 The entity shall disclose (1) the floor area under management for which it

1 The entity shall disclose (1) the floor area under management for which it provided energy or sustainability-related services during the reporting period.

1.1

Floor area under management is defined as the gross rentable floor area where property management services are provided and for which the real estate owner has operational control.

1.1.1

Operational control is defined, consistent with the 2018 GRESB®

Real Estate Assessment Reference Guide, as an instance when the real estate owner can introduce and implement operating policies,

health and safety policies, or environmental policies.

1.2

waste), utility data management, energy procurement, obtaining and retaining sustainability and resource-related certifications, environmental reporting, and corporate sustainability consulting and training.

1.3

The scope of energy and sustainability services excludes services that impart improved energy and sustainability performance in an ancillary,

indirect or minimal way, as well as environmental services that are part of the ordinary operation and maintenance of buildings (for example,

the ordinary operation and maintenance of buildings (for example,

facilities maintenance or janitorial services).

2 The entity shall disclose (2) the number of buildings for which it provided energy and sustainability-related services during the reporting period.

2.1

‘Buildings under management’ is defined as distinct buildings or real estate assets where property management services are provided and where the real estate owner has operational control.

the real estate owner has operational control.

3 The scope of disclosure includes the total floor area and all buildings that were provided with energy and sustainability services during the reporting period,

regardless of the date of inception of such services.

IF-RS-410a.3. (1) Floor area and (2) number of buildings under management that obtained an energy rating 1 The entity shall disclose (1) the floor area under management that obtained an energy rating during the reporting period.

1.1

energy rating during the reporting period.

1.1

Floor area under management is defined as the gross rentable floor area where property management services are provided and for which the real estate owner has operational control.

1.1.1

Operational control is defined consistent with the 2018 GRESB®

Real Estate Assessment Reference Guide as an instance in which the real estate owner can introduce and implement operating policies, health and safety policies, or environmental policies.

policies, health and safety policies, or environmental policies.

2 The entity shall disclose (2) the number of buildings that obtained an energy rating during the reporting period, where:

2.1

The number of buildings under management is defined as distinct buildings or real estate assets where property management services are provided and where the real estate owner has operational control.

2.2

An energy rating is defined, consistent with the 2018 GRESB® Real Estate

2.2

An energy rating is defined, consistent with the 2018 GRESB® Real Estate Assessment Reference Guide, as a scheme that measures the energy performance of buildings.

2.3

2.3.1

ENERGY STAR® for operations in the United States and Canada

2.3.2

EU Energy Performance Certificates (EPC) for operations in the European Union

2.3.3

National Australian Build Environment Rating System (NABERS) Energy for operations in Australia

2.3.4

NABERSNZ for operations in New Zealand

2.3.5

Government energy efficiency benchmarking

2.3.6

Other energy rating schemes that can be demonstrated to have substantially equivalent criteria, methodology, and presentation of

substantially equivalent criteria, methodology, and presentation of results to those schemes above 3 The scope of disclosure is aligned with the 2018 GRESB® Real Estate Assessment Reference Guide in that it ‘only include[s] energy ratings that were awarded before or during the reporting period (pre-assessments or other unofficial forms of pre-

certification are not valid). Some energy ratings are valid for a limited period; only

certification are not valid). Some energy ratings are valid for a limited period; only the rating should be effective and official during the reporting period.’4 The entity shall consider the GRESB® Real Estate Assessment Reference Guide as a normative reference; thus, any updates made year-on-year shall be considered updates to this guidance.

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