New edition introduces mandatory ESG principles and guidance on AI use in valuations
The Royal Institution of Chartered Surveyors (RICS) has unveiled the latest edition of its Global Red Book, introducing significant updates on artificial intelligence (AI) in valuation practices and mandatory environmental, social, and governance (ESG) principles.
First published in 1976, the Global Red Book serves as a benchmark for valuation professionals worldwide, both within and outside RICS membership. The publication outlines mandatory practices and guidance for conducting valuations, ensuring consistency, transparency, and regulatory compliance across global markets. RICS considers the revisions a key step in modernising the profession’s standards to address emerging challenges and technologies.
The updated edition, effective from January 31, 2025, aligns with the latest International Valuation Standards (IVS) issued by the International Valuation Standards Council (IVSC), of which RICS is a member. It also includes enhanced guidance on valuation modelling, risk assessment, and the integration of AI technologies. For the first time, the standards incorporate mandatory ESG considerations, requiring valuers to record relevant ESG data and assess its potential impact on property values.
Key reforms to AI regulation focus on transparency, professional judgement, and data confidentiality, aiming to safeguard ethical practices as reliance on automated tools grows. The addition of ESG principles reflects increasing regulatory and market demands for sustainable and socially responsible valuation approaches.
To support its adoption, RICS is hosting a free webinar on December 11 via its Online Academy. Both members and non-members can register to attend or access a recording afterward.
“For almost 50 years, the RICS Global Red Book has served as a crucial, forward-thinking international standard for the valuation profession,” said RICS president Tina Paillet (pictured). “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 valuations. I’m also pleased that it incorporates mandatory ESG principles for the first time.”
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