How EPRA plays a key role in promoting climate transparency in listed real estate

Listed companies must navigate an evolving regulatory landscape while maintaining robust transparency, writes Lourdes Calderón Ruiz.

The urgency of climate change is reshaping the real estate landscape, driving stricter ESG disclosures, decarbonisation mandates, and evolving investor expectations. However, the European Union’s ‘Omnibus package’, aimed at modifying certain key EU laws on sustainability reporting, has sparked debate, adding complexity to an already shifting regulatory environment.

While the European Commission’s 2025 work programme prioritises simplification (particularly in sustainable finance reporting and sustainability due diligence), the challenge lies in balancing regulatory efficiency with meaningful climate action.

For the listed real estate (LRE) sector, this evolving landscape underscores the importance of clear, consistent, and actionable sustainability reporting. As regulations adapt, companies must navigate these changes without compromising transparency or climate commitments. This is where the European Public Real Estate Association (EPRA) plays a critical role.

Since 2011, EPRA has been a working towards advancing climate transparency and sustainability within LRE through its Sustainability Best Practices Recommendations (sBPR), regulatory advocacy, and strategic collaborations. By trying to align the sector with global climate goals, EPRA wants to ensure practical and proportionate regulatory requirements.

Pioneering ESG reporting performance measures and overarching recommendations

sBPR was the first tailored set of sustainability key performance indicators for LRE companies. Initially focused on environmental performance (covering energy consumption, greenhouse gas emissions, water, and waste), the sBPR has since evolved to include social and governance criteria, reflecting the growing emphasis on holistic ESG performance.

The fourth edition of the EPRA sBPR guidelines, published in May 2024, contains bridge requirements to the sector-agnostic European Sustainability Reporting Standards (ESRS) to help LRE companies prepare for reporting under the Corporate Sustainability Reporting Directive (CSRD). Additionally, it includes a materiality assessment guide and other supplementary resources tailored for the LRE sector, providing companies with practical tools to navigate and adapt more seamlessly to the regulatory obligations of the CSRD.

The sBPR framework has been instrumental in fostering transparency and comparability in ESG reporting, encouraging listed property companies to enhance their sustainability disclosures.

Advocacy for coherent and harmonised regulations

Additionally, beyond reporting standards, EPRA engages with European policymakers to shape sustainability regulations in a way that is both effective and practical for the LRE sector. This involves closely monitoring and responding to the work of the European Commission (EC), the EU Platform on Sustainable Finance, and EFRAG (European Financial Reporting Advisory Group) among others.

Our advocacy efforts focus on:

• Protecting the sector from excessive or unworkable regulatory burdens, ensuring that new requirements are realistic and applicable to LRE.
• Harmonising frameworks to create consistency across different reporting requirements, avoiding duplication and unnecessary complexity.
• Providing clarity and guidance to EPRA members, helping them navigate evolving regulations such as the CSRD, EU Taxonomy, Energy Performance of Buildings Directive and Sustainable Finance Disclosure Regulation.

With the emergence of the Omnibus regulations, EPRA’s role in advocating for practical and streamlined compliance has become even more critical. By engaging with regulators, EPRA helps ensure that reporting frameworks remain achievable and useful, rather than overwhelming for real estate companies.

Key collaborations

EPRA also partners with key industry players to advance knowledge and best practices on decarbonisation. An example is our ongoing collaboration with CRREM (Carbon Risk Real Estate Monitor), which provides science-based decarbonisation pathways for real estate portfolios. We support CRREM’s work and contribute to joint reports that help the sector understand and manage climate risks more effectively.

We have also collaborated in some of CRREM’s studies such as  the Green Governance and the Embodied Carbon of Retrofits reports, which provide valuable insights into governance structures and carbon reduction strategies for existing buildings.

As another example, EPRA collaborates annually with KPMG on an in-depth analysis of non-financial performance, based on the EPRA sBPR database. The 2024 edition of this report expands on previous studies by providing a detailed sectoral breakdown and tracking of key environmental intensity metrics, including energy and water consumption, GHG emissions and governance improvements.

The findings highlight a clear acceleration in ESG adoption across European LRE companies, particularly as they prepare for the implementation of the CSRD. By identifying best practices, challenges, and sector-specific trends, the report serves as a reference for transparency and progress in real estate sustainability reporting.

What’s next?

As climate policies continue to evolve, EPRA remains committed to guiding, supporting, and advocating for the LRE sector, guided by members of the EPRA Sustainability Committee. By strengthening ESG reporting disclosures, ensuring proportionate regulations, and fostering collaboration, we aim to facilitate the industry’s transition to a more sustainable and resilient future.

The challenges ahead are significant, but with collective effort and informed action, the real estate sector can play a pivotal role in addressing climate change while safeguarding long-term value for investors and society alike.

Lourdes Calderón Ruiz is ESG manager at EPRA