Q4 - Global Performance Report 2018-191rics.org

Q4Global performance report 2018-2019

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Q4 - Global Performance Report 2018-192

IntroductionReflecting the strategic direction, we are taking, and the expectations placed on us, we continue to deliver on our ambitious vision set out by Governing Council: “Through our credentials and our professional standards, we will create confidence in markets and be known for effecting positive change in the built and natural environments.”

We believe that, through a combination of the profession’s pursuit of standards, its expertise and innovation, and our collective voice and influence, we can bring about real change and better outcomes as the world urbanises and tackles the challenges of climate change, resource scarcity, maintaining connectivity, an ageing population and the impacts of technology on the way we live and work.

RICS aims to lead the profession in bringing together professionals, like-minded organisations, policy makers and market influencers to help find the solutions that will be required to address the challenges we face in the built and natural environments. We report here on the progress we have made engaging the thought-leaders, major employers and end users in the issues we see as most important for shaping the world we live in.

Significant milestones in this quarter

• Our fourth World Built Environment Forum Summit took place in New York in May, with two days of cutting-edge discussions from some of the world’s leading thinkers in the built environment, bringing fascinating and thought-provoking insights to our audience. The Summit attracted over 500 global influencers, showcasing RICS as a key player on globally significant issues relating to the built environment such as urbanisation, the natural environment, data and technology, and geopolitics and markets.

• As a member of the EU Technical Working Group on Sustainable Finance (TEG) appointed by the European Commission, RICS is leading on the built environment strand of a comprehensive EU strategy that fully supports the transition towards a sustainable economy, one of the key priorities of the European Commission and the UN Sustainable Development agenda.

• The International Fire Safety Standards (IFSS) coalition continues to grow, with the Fire Sector Federation and the Modern Building Alliance recently joining, bringing the total to 57 organisations plus a further 20 supporters. The coalition will provide universal rules that classify and define fire safety standards at project, state, national, regional and international levels.

This Q4 report is a summary of RICS, worldwide performance against our objectives and strategic goals in the third quarter of the 2018/2019 financial year (May–July 2019). It is available to members of the profession, employees and other key stakeholders.

We welcome all comments on this report.

Paul Marcuse FRICS Chairman, RICS Management Board

Sean Tompkins Chief Executive Officer, RICSe contactrics@rics.org

mailto:contactrics@rics.org

Context To achieve Governing Council’s vision, the Management Board established strategic goals for the 2017–20 business plan period.

Strategic goals• Our standards adopted The standards to which RICS professionals’,

work are demanded and adopted in the major economies of the world.

• Profession in demand As a result of market demand for RICS

standards and credentials, highly talented individuals choose to qualify and work to our standards.

• Trusted by our stakeholders We remain trusted to set and enforce standards

for the profession.

• Influential profession RICS brings about beneficial change in response

to the major challenges the world faces.

• Sustainable professional body The profession and RICS employees are highly

engaged, proud and increasingly diverse. The organisation is efficient and financially stable.

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Key achievements this quarterAn influential thought leaderThrough collaboration with others, we are working to bring about beneficial change in response to the major challenges the world faces. We continue to make progress by building trust with our stakeholders globally to set and enforce consistent standards for the profession.

• RICS participated in a round table that included the World Bank, UN-Habitat and the Foreign and Commonwealth Office to discuss issues around improved due diligence in land acquisition – valuation, cost, taxation and regulations.

• Part of the World Bank Group, the International Finance Corporation (IFC) is the largest global development institution focused exclusively on the private sector in developing countries (i.e. those countries with the fastest growth in urbanisation). IFC sponsored our WBEF Summit New York and are sharing intellectual property on sustainable buildings with us.

• The Ministry of Housing, Communities and Local Government (MHCLG) has conducted a review of the 2010 Regulations and has published revised legislation for local authorities in England under The Community Infrastructure Levy (Amendment) (England) (No.2) Regulations 2019. The MHCLG approached RICS to develop an annual index for the purpose of updating the Community Infrastructure Levy (CIL) charges published by local authorities in line with these regulations.

This is a significant event in the adoption of RICS standards and recognition of our leading role in developing and publishing inflation indices.

• RICS recently presented at an expert review meeting attended by the Commonwealth Secretariat and Global Infrastructure Anti-Corruption Centre (GIACC). The main focus of the presentation was the role of the professional body and the development of the recent professional statement on countering bribery.

Trusted by clients in our key marketsRICS standards for the profession continue to be adopted in the major economies of the world by governments and end users.

EMEA• Network Rail confirmed the adoption of ICMS

which will help to further increase equity of ICMS in the construction community. Network Rail have, alongside the Department for Transport, contributed to the production of the Transport Infrastructure Efficiency Strategy (TIES), which governs the direction of infrastructure nationwide.

• Legal & General Surveying Services and Nationwide Building Society, both major players in mortgage lending, have formally

adopted the new Home Survey standard. They will collaborate with RICS on the adoption of the data standards into their software and will actively promote the new standard to consumers.

• The UK Green Building Council has produced a framework to deliver buildings that are in line with the aims of the 2016 Paris Climate Agreement. Throughout this document RICS and coalition standards have been referenced including ICMS and Whole Life Carbon Assessment for the Built Environment.

• The UK Government Property Profession (GPP), a network of over 2,000 members with responsibility for a range of property-related activities, on behalf of the government, adopted a suite of RICS standards.

• The Cyprus Land Registry, which is the main authority dealing with the registration of property in Cyprus, have adopted IVS and the RICS Red Book, and recommends that property valuation in Cyprus be done in accordance with the Red Book.

• COWI, an unlisted Danish public limited liability consultancy firm with subsidiaries in several countries, adopts RICS New Rules of Measurement (NRM).

• Česká Spořitelna Bank in the Czech Republic, which is part of Erste Group Bank AG, adopted IVS and the RICS Red Book and valuations.

• A Shari’a-compliant, real estate investment trust in the UAE has stated they will only use

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RICS registered valuers to conduct valuations on their behalf. Their recognition of the RICS Valuer Registration scheme demonstrates a clear understanding of its benefits (e.g. consistency, transparency and reduced risk in conducting valuations in the Middle East), and will be used as an example of market best practice.

Americas• BC Assessment has agreed to participate in a

talent management program, confirming that the MRICS will be a preferred qualification for its assessors. BC Assessment’s annual property assessments provide the foundation for local taxing authorities throughout the province of British Columbia to calculate billions of dollars in property tax revenue each year, which fund the many important community services provided by local governments throughtout the province.

• The Ministry of Finance in Trinidad and Tobago and NAI Global, a government agency in North America, have agreed to have their valuation staff become RICS qualified to ensure that government-related valuation activities are compliant with the Red Book.

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RICS-qualified professionals worldwide

109,166

followers on Instagram7,784

subscribers on YouTube6,400

fans on Facebook 59,936

people in the global LinkedIn group and 116,807 followers

81,827followers on Twitter 92,900

23,323candidates in 132 countries

of these newly qualified professionals are based outside the UK & Ireland, notably China (16%), Europe (12%) and East Asia (6%)

of these newly enrolled candidates are based outside the UK & Ireland, notably China (14%), Europe (10%) and MENA (7%)

51%

49%

new professionals (26% female) awarded RICS designations during 2018-19, behind last financial year4,513

new candidate enrolments (26% female) during 2018-19, ahead of last financial year

8,263are using our online assessment resource (ARC) to prepare for their professional assessments

Subject to external audit, we are in line with our business plan target of £0.4m operating surplus at the end of the financial year. Given the legislative changes taking place in India and the short-term impacts these have had on the real estate and construction markets, India was our greatest ‘off track’ area of performance and is a priority focus for the next financial year.

Americas Asia Pacific EMEALatin Americaricsamericalatina@rics.org

Australasiaaustralasia@rics.org

Greater China (Shanghai)ricschina@rics.org

South Asiaricsindia@rics.org

Africaricsafrica@rics.org

Irelandricsireland@rics.org

United Kingdom RICS HQcontactrics@rics.org

North Americaricsamericas@rics.org

Greater China (Hong Kong)ricshk@rics.org

Japanricsjapan@rics.org

Southeast Asiasea@rics.org

Europericseurope@rics.org

Middle Eastricsmiddleeast@rics.org

rics.org

Delivering confidenceWe are RICS. Everything we do is designed to effect positive change in the built and natural environments. Through our respected global standards, leading professional progression and our trusted data and insight, we promote and enforce the highest professional standards in the development and management of land, real estate, construction and infrastructure. Our work with others provides a foundation for confident markets, pioneers better places to live and work and is a force for positive social impact.

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