Ricerc@Sapienza

The acknowledgment of the ongoing economic and financial crisis involving real estate, creates the need to formulate proposals and scenarios (in real estate) with the characteristics of socially responsible investments. These kind of investments aim towards “sustainable” development both environmentally (safeguarding the shortage of resources such as land, energy, and natural elements), and socially (protecting the population and raising its level of well-being) according to so-called “ethical finance”, instead of a mere “speculative” investment.

Following the approval of the Basel capital adequacy framework, the credit institutions had to adapt their skills to determine regulatory capital. In this regard, the methodologies defined by the Third Basel Accord [2] have some limits concerning the subjectivity of some aspects and the complexity of the valuation models, especially for the smaller credit institutions that lack suitable corporate structures capable of efficiently applying the established procedures.

Following the events of the still unfolding economic and financial crisis involving Real Estate, there has been a growing awareness of having to formulate proposals and scenarios (in Real Estate) that have the characteristics of socially responsible investments; therefore, in line with the papal Encyclical Laudato Si’, these proposals and scenarios must aim to growth based on a development that is "sustainable" both environmentally and socially.