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The Adoption of Environmental, Social, and Governance (ESG) Features in Property Valuation in Ibadan, Oyo State, Nigeria
Subject area: Physical Sciences and Environment · Area of research: Property Valuation
DOI: 10.64388/IREV10I4-1723876
Abstract
The growing emphasis on sustainability and long-term value creation has increased the relevance of Environmental, Social, and Governance (ESG) features in property valuation. However, there is limited and inconsistent adoption of ESG features in property valuation practice in the emerging market context. This paper evaluates the drivers of Environmental, Social, and Governance (ESG) features integration in valuation practice of properties in Ibadan, Oyo State, Nigeria. Out of the 190 Estate Surveying and Valuation firms in the 2024 Nigerian Institution of Estate Surveyors and Valuers (NIESV) Directory, valid surveys from 179 respondent firms were completed, representing 94.2% retrieval rate. The analysis utilized descriptive statistics, the Kaiser-Meyer-Olkin (KMO) and Bartlett’s tests, principal component analysis with Varimax rotation, and composite factor scoring. Three latent factors (comprising 78.13% of the variance) were revealed: External Drivers (composite mean = 4.19), Internal Capabilities (composite mean = 3.89), and Economic Constraints (composite mean = 3.81). External Drivers were comprised of Government Regulations, client demand, and lack of awareness. Internal Capabilities included data availability, competitive advantage, and compliance with international standards. Economic Constraints were dominated by high implementation costs. External regulatory and market forces have the greatest influence. The current study supports the need to develop internal capacity and address cost barriers, as these are expected to facilitate continuous adoption. The following recommendations were made: introduction of mandated ESG reporting standards, accredited continuing professional development, and the staggered adoption of guidelines.
Keywords
ESG adoption; property valuation; external drivers; internal capabilities; economic constraints; estate surveying and valuation
References
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How to cite this paper
@article{1723876,
author = {Oluwakemi Olubisi Ojetola, Timothy Olugbemiga Adewolu},
title = {The Adoption of Environmental, Social, and Governance (ESG) Features in Property Valuation in Ibadan, Oyo State, Nigeria},
journal = {Iconic Research And Engineering Journals},
year = {2026},
volume = {10},
number = {4},
pages = {1818-1826},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1723876.pdf},
abstract = {The growing emphasis on sustainability and long-term value creation has increased the relevance of Environmental, Social, and Governance (ESG) features in property valuation. However, there is limited and inconsistent adoption of ESG features in property valuation practice in the emerging market context. This paper evaluates the drivers of Environmental, Social, and Governance (ESG) features integration in valuation practice of properties in Ibadan, Oyo State, Nigeria.
Out of the 190 Estate Surveying and Valuation firms in the 2024 Nigerian Institution of Estate Surveyors and Valuers (NIESV) Directory, valid surveys from 179 respondent firms were completed, representing 94.2% retrieval rate. The analysis utilized descriptive statistics, the Kaiser-Meyer-Olkin (KMO) and Bartlett’s tests, principal component analysis with Varimax rotation, and composite factor scoring.
Three latent factors (comprising 78.13% of the variance) were revealed: External Drivers (composite mean = 4.19), Internal Capabilities (composite mean = 3.89), and Economic Constraints (composite mean = 3.81). External Drivers were comprised of Government Regulations, client demand, and lack of awareness. Internal Capabilities included data availability, competitive advantage, and compliance with international standards. Economic Constraints were dominated by high implementation costs. External regulatory and market forces have the greatest influence.
The current study supports the need to develop internal capacity and address cost barriers, as these are expected to facilitate continuous adoption. The following recommendations were made: introduction of mandated ESG reporting standards, accredited continuing professional development, and the staggered adoption of guidelines.},
keywords = {ESG adoption; property valuation; external drivers; internal capabilities; economic constraints; estate surveying and valuation},
month = {October},
doi = {https://doi.org/10.64388/IREV10I4-1723876}
}