Influence of environmental social governance (ESG) disclosure on the financial performance (FP) of real estate investment trusts (REITs): A review

Environmental, social and governance (ESG) reporting has become a central lens for assessing value creation and risk in real estate capital markets. This systematic review synthesises empirical evidence on the linkages between ESG disclosure and the financial performance (FP) of real estate investment trusts (REITs) over 2016–2024. A transparent protocol guided by ROSES and PICOC was applied to studies retrieved from Scopus, Web of Science and Google Scholar, with quality appraisal using MMAT. After screening 8,766 records, 28 studies covering 38 countries were retained for content analysis. The evidence indicates a predominantly positive association between ESG disclosure and FP: approximately two-thirds of reviewed studies (≈68%) report favourable links across accounting- and market-based metrics, while about 16% report negative and 16% mixed effects. The “social” and “governance” pillars are most frequently and substantively disclosed, whereas the “environmental” pillar is least reported and, in several studies, exhibits non-linear or initially adverse financial effects before turning positive at higher ESG intensities. Geographically, evidence is concentrated in developed markets (the United States, the United Kingdom, and Australia), with limited but emerging coverage in Asia and persistent gaps in Africa. Methodologically, linear panel regressions dominate, though a subset employs non-linear specifications (e.g., U-shaped relationships) that help reconcile disparate findings by highlighting threshold effects and short-run cost frictions. Overall, the balance of evidence supports ESG disclosure as a value-enhancing strategy for REITs, particularly via social and governance dimensions, while underscoring the need for deeper, sector-specific analyses of environmental investments, standardised disclosure metrics, and expanded coverage of under-studied regions. These insights inform investors, managers and policymakers seeking to align sustainability reporting with financial outcomes in listed real estate.