The GRESB universe continues to improve on ESG performance, albeit at a lower pace compared to previous years. The listed sector (average Score: 66) maintains a slight advantage over the private sector (average Score: 62), while the performance gap has narrowed further.
Real estate companies and funds that have been early adopters in reporting to GRESB have shown to not only make continuous performance improvements, but also to structurally outperform those that have started later. In addition, first year participants start at an increasingly higher performance level, as more sustainability practices are adopted by the industry.
We observe that companies and funds that develop stakeholder engagement programs are likely to start in-house, focusing on employees, and work their way towards monitoring their supply chain and improving their relationship with tenants.
The year-on-year increase in environmental performance data availability can, in part, be attributed to intensified tenant engagement. In 2017, 63% of participants distribute tenant engagement guides compared to only 22% in 2012, and 76% participants organize tenant engagement meetings compared to 37% in 2012.
Through advancements in asset reporting practices and the support of GRESB’s Data Partners, we are increasingly able to generate a detailed picture of energy intensities in different built environments.
This analysis of commercial office buildings across regions represents the beginning of a new generation of analytical tools. As more sectors provide sufficient observations, the new benchmarking abilities will help portfolio managers of all property types and regions to improve their energy efficiency profiles.
The United Nations Sustainable Development Goals (UN SDGs) aspires to double energy efficiency rate of improvement by 2030 under UN SDG Target 7.3. To achieve this target, global energy efficiency has to improve with a 2.6% compounded rate between 2010 and 2030. The real estate sector is poised to play an important role in achieving this target. By tracking the like-for-like portfolio energy consumption change of GRESB participants as a determinant to measure energy efficiency improvement, GRESB participants that submitted data have stayed ahead of this target between 2010 and 2016.
Earlier this year GRESB conducted a survey of Investor Members. The results show that investors are demanding greater transparency on the ESG performance of real asset portfolios. They want to know how ESG-related risks are managed so that they can make better decisions on the allocation of their capital. And they are looking for coverage across all asset classes and strategies they invest in.
All GRESB investors in the survey have confidence in the ability of managers to meet their ESG disclosure requirements. While most still value transparency above performance, 35% set specific targets in terms of GRESB performance. When asked for their single biggest challenge in accurately managing the sustainability risks of their investment portfolios, over half mentioned data quality and portfolio coverage.
Regional Sector Leaders
The following Real Estate Sector Leaders have achieved the highest overall GRESB score within each of the following categories:
Nature of Ownership: Listed, Private
Sector: Diversified, Retail, Office, Industrial, Residential, Other, Diversified (Office/Retail, Office/Industrial, Office/Residential)
Region: Americas, Asia, Australia/NZ, EMEA
Denotes Global Sector Leaders.
Americas Sector Leaders
|Listed - Retail||The Macerich Company|
|Listed - Office||Kilroy Realty Corporation|
|Diversified||Invesco Real Estate (US) - Invesco Real Estate|
|Private- Retail||PGIM Real Estate|
|Private - Office||Lionstone Hermes Real Estate Ventures - Lionstone Investments|
|Industrial||Prologis - Prologis|
|Residential||Institutional Core Multifamily Investors - Invesco Real Estate|
|Diversified - Office/Retail||Vornado Realty Trust - Vornado Realty Trust|
|Diversified - Office/Industrial||GWL Realty Advisors - GWL Realty Advisors|
|Diversified - Office/Residential||Multi-Employer Property Trust/MEPT Edgemoor - Bentall Kennedy Group|
Asia Sector Leaders
|Listed - Diversified||CapitaLand Limited|
|Listed - Retail||CapitaLand Mall Trust|
|Listed - Office||City Developments Limited|
|Listed - Industrial||Nippon Prologis REIT, Inc.|
|Private - Diversified||White Peak Real Estate Investments - WP Group|
|Private - Retail||Lendlease Asian Retail Investment Fund 1 - Lendlease|
|Private - Office||Invesco Real Estate (Asia) - Invesco Real Estate|
|Private - Industrial||GLP Japan Income Partners I - Global Logistic Properties Limited|
|Residential||Sekisui House Residential Investment Corporation - Sekisui House Asset Management, Ltd.|
|Other||Swire Properties Limited - Swire Properties Limited|
|Diversified - Office/Retail||Activia Properties Inc. - TLC REIT Management Inc.|
Australia / New Zealand Sector Leaders
|Listed - Office||DEXUS Office Trust|
|Retail||Vicinity Centres Direct Portfolio - Vicinity Centres|
|Private - Office||Australian Prime Property Fund Commercial - Lendlease|
|Industrial||Frasers Logistics & Industrial Trust - Frasers Logistics & Industrial Asset Management Pte. Ltd.|
|Diversified - Office/Retail||Dexus Wholesale Property Fund - Dexus|
Europe Sector Leaders 2018
|Listed - Diversified||UK Commercial Property Trust|
|Listed - Diversified - Office/Industrial||Castellum AB|
|Listed - Office||GECINA|
|Listed - Retail||Unibail-Rodamco|
|Listed - Residential||GRIP REIT Plc|
|Private - Diversified||SPP Fastigheter AB, Storebrand Fastigheter AB, Diversified|
|Private - Diversified - Office/Industrial||RBS Pension Trustees Limited, Aberdeen Standard Investments|
|Private - Diversified - Office/Residential||Stichting Bpf voor het Beroepsvervoer over de weg, Syntrus Achmea Real Estate & Finance|
|Private - Diversified - Office/Retail||Hines Master Fund Management Company S.a.r.l. on behalf of Hines Real Estate Master FCP-FIS, Hines|
|Private - Healthcare||Achmea Dutch Health Care Property Fund, Syntrus Achmea Real Estate & Finance|
|Private - Hotels||Bouwinvest Dutch Institutional Hotel Fund N.V., Bouwinvest REIM|
|Private - Industrial||UBS German Logistic Fund, UBS Global Asset Management|
|Private - Office||Vasakronan|
|Private - Other||Leisure Fund Property Partnership, Legal and General Investment Management|
|Private - Retail||SLI UK Shopping Centre Trust, Aberdeen Standard Investments|
|Private - Residential||Build to Rent (1), Legal and General Investment Management|
Developer Sector Leaders
|Developer||Lendlease International Towers Sydney Trust - Lendlease|