EWJ FEB 59 2025 web - Flipbook - Page 84
New RICS Global Red Book
Updates Mandatory Standards for Data
Management, Technology and ESG
The Royal Institution of Chartered Surveyors (RICS) has released a new edition of its Global
Red Book, making several crucial updates on the use of AI in valuation and the mandatory implementation of ESG principles. First published in 1976, the Red Book is used by valuation professionals across the globe, both within and outside the institution's membership.
The Red Book sets out mandatory practices and
guidance for RICS members conducting valuations
and is a crucial reference tool for stakeholders worldwide. It is essential for maintaining and improving
high service standards and meeting the demands of
an ever-evolving global regulatory landscape. It supports the creation of accurate, compliant, objective
and transparent valuation reports benefitting the
public and market stability.
valuations. This latest mandatory standard is a
testament to the significant knowledge and experience of RICS members and staff across the globe. Crucially, the new version aligns with other key standards,
such as IVS. I’m also pleased that it incorporates
mandatory ESG principles for the first time. The Red
Book is an essential document for all professionals and
stakeholders with any sort of connection to valuation
and I implore everyone to read it, action it, and
engage with RICS."
The latest version makes several crucial updates.
These include:
Ben Elder, RICS Head of Professional Practice Valuation and Investment Advisory, said: “This revision of the RICS Global Valuation Standards is an important next step in maintaining the Red Book as the
market leading valuation standards that delivers trust
and confidence in the services of RICS valuers. As data
sources increase, the revisions set additional requirements to ensure data is appropriately managed that
supports the understanding of ESG and AI issues.”
l Aligning with other relevant global standards, such
as the latest International Valuation Standards (IVS),
published by the International Valuation Standards
Council (IVSC), of which RICS is a member
l Incorporating new content on modelling, methods
and risk assessment
l Practice and process changes regarding rapidly
developing technologies such as AI, and, for the
first time, a mandatory Environmental, Social and
Governance principles (ESG) element
The reform to AI regulation includes a commitment
to transparency in its use and consistent professional
judgement in its application, as well as confidentiality
and data rights protections. Meanwhile, Valuers must
now record relevant ESG data and consider any
factors related which might impact valuation.
The new edition was published on December 2, 2024,
and becomes effective for RICS-accredited professionals on January 31, 2025. RICS is running a free
explanatory webinar at 10 am (GMT) December 11
on its Online Academy, which both members and nonmembers are invited to sign-up for at this link. The
webinar will also be available as a catch-up recording
for those who register.
RICS President, Tina Paillet, said: "For almost 50
years, the RICS Global Red Book has served as a
crucial, forward-thinking international standard for
the valuation profession. This edition is yet another
groundbreaking update providing important
additions and revisions.
"Technology is developing rapidly, and the new
update reflects the swift pace of change in the industry, particularly in regard to the increasing use of AI in
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