IPSX, Britain’s newest regulated stock exchange and the first dedicated to commercial real estate assets, has joined forces with sustainability data and consulting firm Carbon Intelligence, affording all listings clear guidelines how they should be reporting and managing both embedded and operating carbon emissions.

Carbon Intelligence already manages long-term decarbonisation programmes for real asset portfolios to help drive the transition to a net-zero world. In this partnership it will apply its team’s expertise to single assets to create transparency for investors and impact and   value for issuers.

It means assets listed on the IPSX will have absolute transparency and regular reporting of the carbon emissions of those single assets allowing investors to run more effective ESG-aware portfolios.

IPSX chief executive David Delaney said: “Carbon consumption of the real estate sector both at an operating and embedded level is something that investors have struggled to find information on.

“Working with Carbon Intelligence to provide these guidelines to our issuers will help with reporting and provide investors with greater transparency on asset performance.”

Jonathan Sykes, Executive Chairman, Carbon Intelligence, added: “We are excited to help create a carbon reporting framework for IPSX. Together, we will create transparency for investors and help issuers future-proof their buildings so they remain viable and valuable.”

Within the commercial real estate sector, there has been a significant shift in recent years towards risk-averse and future-proof investments. This has been driven by the increasing recognition of climate change as a global issue likely to impact long-term environmental, social and economic stability.

According to the Global Real Estate Standards Board research, published in April 2020, some 40% of investors put climate risk and disclosures as their most concerning ESG issue over the next 5-10 years.

With increasing legislation and investor pressure to manage climate risks, commercial real estate organisations will be required to address the carbon impacts of their portfolios and IPSX will be leading the way in setting the framework of the property stock exchange for companies to report effectively to investors.