Lack of appropriate training, inconsistent terminology and metrics, and little guarantee that sustainability improvements will enhance fund performance, are among the challenges facing the industry, according to a report produced by Jones Lang LaSalle.

Lack of appropriate training, inconsistent terminology and metrics, and little guarantee that sustainability improvements will enhance fund performance, are among the challenges facing the industry, according to a report produced by Jones Lang LaSalle.

Earlier this year the European Association of Investors in Non-listed Real Estate Vehicles (INREV) commissioned JLL's Energy and Sustainability Services (ESS) team to survey a cross-section of its members about sustainability issues. The report, published by Jones Lang LaSalle on behalf of INREV, highlights several barriers which 'must be overcome if the industry is to make real progress in this area'.

Matthias Thomas, CEO of INREV, said: 'Investors and fund managers are working hard to put in place sustainability aspects but this report shows that some basic building blocks could be improved to ensure these initiatives are incorporated more productively across the industry.'

Elsbeth Quispel, head of Sustainability Services at Jones Lang LaSalle Netherlands, added: 'It's clear from this research that sustainability is a key issue for European real estate investors and fund managers. Although some forward-looking firms are making substantial headway, the general pace of progress will continue to be limited without training, common standards and metrics and a clear business case for making sustainable investments.

'Thanks to our support, INREV’s Sustainability Working Group is now able to identify a series of new initiatives to help its members in these critical areas, enabling them to overcome barriers and eventually improve the sustainability of their funds.'