I love this time of year in multifamily. Things slow down (slightly) from the break-neck pace of the rest of the year and we get to take a moment to ponder where we are and to set goals for our assets and for ourselves.
In the spirit of both, we should contemplate familiarizing ourselves with CSRD (Corporate Sustainability Reporting Disclosure). Many of us have European funds for owners and operators with which we do business. These funds and companies will need to report under new CSRD guidelines in the next few years according to the following schedule:
- Companies already participating in Nonfinancial Disclosure Reporting (NFRD) must report in 2025 using 2024 data (environmental, social and governance data)
- Large European companies must report in 2026 using 2025 data.
- Listed small/medium enterprise (SME) companies must report in 2027 using 2026 data.
- All the other European companies must report in 2029
If you have not made a new-year’s resolution yet, I suggest you make one to familiarize yourself with the reporting format requirements around environmental data. A large component of environmental data is the utility data for our properties. If you are working with any funds whose primary place of business is outside the US, it behooves you to ask them if (and when) they will have to report with CSRD. Not only will you earn brownie points for taking the initiative to ask this question, but you will learn the time at which you will need to have your data ready to go for them.
If you are unfamiliar with the standardized data format of CSRD for environmental data, do not worry. The CSRD institute offers courses on understanding the new framework and on what to expect. The first overview course is currently FREE so, as these weeks slow down as our peers take time off to celebrate, consider enrolling. Or if you take time off and are looking for something to kick-start your professional growth next year, then I heartly recommend spending a little time this season learning about CSRD and preparing yourself for what is coming. Happy Holidays!
