Towards more transparency in the real estate sector through sustainability reporting

Abstract

Transparency is a fundamental factor of the real estate market efficiency, which facilitates decision-making and coordinates the actions of the stakeholders. The paper aims to explore the new trends of real estate transparency through sustainability practices in correlation with global sustainable development goals (SDGs). The contributions to the achievement of the sustainability goals and the transparency in the environmental, social and governance (ESG) reporting of the real estate companies are analysed. Based on the content analysis, considering both quantitative and qualitative information, the sustainability reports, published by the real estate companies in the GRI database and Corporate Register are explored, beginning with the 2016 year, the first reporting year after the global SDGs adoption. Sustainability reporting offers new perspectives for real estate corporate sustainability in order to increase the transparency of the sector. The real estate companies are increasingly interested in aligning sustainability practices with global sustainability goals. The majority of the firms are oriented to the consolidation of sustainable cities and communities in response to the several trends that affect urban environments around the world. Transparency is perceived as one of the most important principles of good governance and with high impact on the stakeholders and on financial performance. Technological adoption for big data processing, co-working and cooperation into expanded business networks, innovation by increasing spending on research and development outline new trends in transparency.