New ESG Evaluation Method for Swiss Real Estate Funds

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New ESG Evaluation Method for Swiss Real Estate Funds

Posted by: Baris Karapinar
Category: ESG News

In line with global sustainability targets, Switzerland’s real estate sector, contributing nearly 40% to the nation’s energy consumption, requires a comprehensive approach. Traditional ESG labels, favoring larger entities, neglect significant market segments. Addressing this, Lausanne’s Center for Risk Management introduces PRESS scores (Public Real Estate Sustainability Switzerland). These scores democratize ESG information access, promoting transparency and a forward-looking perspective.

To overcome challenges of survey-based assessments, CRML collaborates with Quanthome SA, shifting to a data-driven approach using public information for a uniform evaluation of ESG criteria, enhancing transparency.

PRESS Scores integrate quantitative measures and textual analysis for a comprehensive evaluation. Quantitative measures cover essential factors in environmental, social, and governance pillars, offering insights into sustainability management. Textual analysis from annual reports enriches the evaluation, capturing narratives and commitments to sustainable development.

This dynamic blend forms the foundation of the PRESS scoring system, ensuring investors receive a comprehensive and easily interpretable assessment.

PRESS Scores emerge as a powerful tool for sustainable investment, providing crucial insights and market transparency. While currently limited to listed funds, the roadmap includes expanding coverage and addressing challenges posed by climate change, paving the way for a transparent, responsible, and sustainable future in Switzerland’s dynamic real estate market.

Developed by researchers at CRML, HEC Faculty (UNIL), and Quanthome SA, with support from Banque Cantonale Vaudoise and the University of Lausanne, PRESS Scores are essential for stakeholders seeking informed decisions in sustainable finance.

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