COVERAGE & GROWTH
The Infrastructure Fund Assessment grew by 43% to include 107 funds. By fund size, the Assessment covers 33 of IPE Real Assets’ Top 75 Infrastructure Investment Managers – participating with at least one fund.
Out of the 107 participating funds, 64 (60%) participated with more than 25% of their assets, allowing them to obtain a GRESB Fund Score, the ultimate ESG benchmark of fund performance for investors.
The Infrastructure Asset Assessment increased by 40% to cover 393 assets.
Participation grew across all regions being particularly strong in Oceania (53% growth) and the Americas (44%). The Assessment now covers 30 of the 33 industry sectors across 57 countries.
In 2019, all assets reported their facilities including their locations. The map above color codes each country based on the number of reported facilities. Assets reported on six continents, with over 1,100 facilities spread across 57 countries, with coverage continuing to be dominated by OECD countries.
Europe builds upon its track record for transparency with the most funds and assets participating in the benchmark by both number and value. Assets in Oceania or that are Globally Diversified scored highest, with Oceania reflecting the same leadership trend shown in the Real Estate Assessment.
GRESB MODEL AND SCORES
The average GRESB Fund Score remained similar to 2018, with an increase in average Fund Assessment Score (71) being offset by a slight decrease in the average Weighted Asset Score (48 in 2019, versus 49 in 2018). The tendency for Fund Assessment Scores to be higher than Weighted Asset Scores continued in 2019, showing that fund management practices tend to lead the overall performance of the underlying assets. Fund managers should put most effort into improving asset performance before improving their own practices.
The number of funds eligible for GRESB Fund Scores grew sufficiently in 2019 to allow star ratings to be calculated for the first time. These ratings divide the participants into equal quintiles, providing a relative measure of performance against all other participants. The minimum score for a 5-star rating was 70 and the minimum score for a 2-star rating was 37
The GRESB Model for Funds shows the Fund Assessment Score on the vertical axis and the Weighted Average Asset score on the horizontal axis.
Funds are eligible for a GRESB Fund Score when they report for more than 25% of their assets (57% of the total in 2019). These are represented by the green dots.
Those reporting with less than 25% of their assets receive only a Fund Assessment Score and are clustered on the vertical axis (blue dots).
The GRESB Model for Assets shows the score for each asset on the two dimensions (Management & Policy and Implementation & Measurement) that make up the overall GRESB Asset Score.
Each dot is sized in proportion to its GAV. Overall GRESB Asset Scores decreased from 48 in 2018 to 46 in 2019, slightly reversing the trend seen since the Infrastructure Assessment launched in 2016.
Average scores for Management & Policy improved slightly from 49 to 50, but Implementation & Measurement scores decreased from 46 to 42. This is partly explained by lower scores by new participants (1 in 3 asset participants in 2019 participated for the first time). New participants to GRESB tend to have lower scores than continuing participants, generally because their ESG practices are less mature.
DEFINING SDG MATERIALITY
There is an emerging recognition among GRESB Investor Members that the UN Sustainable Development Goals (SDGs) provide a useful reference point for both guiding the intent and measuring the impact of their investments. We have defined SDG materiality for real assets which provides the foundation for our work with our governance groups to agree upon a standardized set of metrics to track the contribution of real estate and infrastructure investment towards achieving the goals.
GRESB performed the mapping exercise with a top-down approach, first beginning with the alignment to the goal, then to the target, and lastly to the indicator. The alignment was ranked on a 0-3 scale (0- “Not aligned”; 3 – “Aligned”)
In addition to the alignment mapping, we analyzed which SDGs are the most frequently addressed in public reporting by GRESB participants. The highlighted SDGs in the image are the most material to the infrastructure sector
The GRESB Asset Assessment is structured into seven unique sustainability Aspects.
Average Management and Monitoring & EMS Aspect scores have stayed steady or increased compared to last year.
Scores for Performance Indicators, Policy & Disclosure, Risks & Opportunities and Stakeholder Engagement have weakened.
The chart shows the number of assets participating and average score, broken down by sector. Participation grew across all main sectors and was strongest in Transport (37 additional participants), followed by Social Infrastructure (an increase of 24 participants) and Renewable Power (20 new participants).
The best-scoring sector is Network Utilities with an average score of 63 and the lowest average Score is for Social Infrastructure (29). The score for the latter sector is dragged down by a significant number of low-scoring assets, suggesting that these organizations have not given ESG as much priority as other sectors.
Infrastructure Industry Partners
2019 INFRASTRUCTURE SECTOR LEADERS
GRESB Sector Leader Awards recognize the best performers annually from across the GRESB Assessments. Achieving sector leader status is recognition of best practice ESG performance. We congratulate the 2019 GRESB Infrastructure Sector Leaders.
|Sector | Region||Name|
|Sector: Diversified||Arcus European Infrastructure Fund 1, Arcus Infrastructure Partners|
|Sector: Renewable Power Generation||Capital Dynamics Clean Energy and Infrastructure V JV LLC, Capital Dynamics|
|Sector: Other (including Data infrastructure, Social and Transport)||Macquarie Super Core Infrastructure Fund, Macquarie Infrastructure and Real Assets|
|Region: Americas||Capital Dynamics Clean Energy and Infrastructure V JV LLC, Capital Dynamics|
|Region: Asia||Takara Leben Infrastructure Fund, Inc., Takara Asset Management Co., Ltd.|
|Region: Europe||Arcus European Infrastructure Fund 1, Arcus Infrastructure Partners|
|Region: Globally diversified||Macquarie Super Core Infrastructure Fund, Macquarie Infrastructure and Real Assets|
|Region: Oceania||AMP Capital Diversified Infrastructure Trust, AMP Capital|
|Sector | Superclass||Sector | Class||Name|
|Data Infrastructure||Data Transmission||AXIÓN Infraestructuras de Telecomunicaciones S.A.U.|
|Diversified and Other||REDEXIS GROUP|
|Energy and Water Resources||Pinedale Energy Partners|
|Environmental Services||Saubermacher Dienstleistungs AG|
|Network Utilities||Phoenix Natural Gas|
|Power Generation x-Renewables||Viesgo Producción S.L.|
|Renewable Power||Wind Power Generation||Ventient Energy|
|Social Infrastructure||Government Services||Operadora de Infraestructura Especializada de Guanajuato, S.A.P.I. de C.V. ("OIEGSA")|
|Diversified and Other||Other||ESVAGT A/S|
|Renewable Power||Solar Power Generation||Sonnedix Power Holding|
|Social Infrastructure||Education Services||UDICITE|
|Social Infrastructure||Health and Social Care Services||Gestión Integral de Hospitales de Zumpango, S.A.P.I. de C.V. ("GIHZ")|
|Transport||Airport Companies||Australia Pacific Airports Corporation Limited|
|Transport||Port Companies||Associated British Ports|
Entity is an Asset Sector Leader (leader for the Class)