— THE GRESB REAL ESTATE ASSESSMENT —
The Investor-driven Global ESG Benchmark for the Real Estate Sector
The Assessment offers high-quality ESG data and powerful analytical tools to benchmark ESG performance, identify areas for improvement and engage with investors.
In 2019, more than 1,000 property companies, real estate investment trusts (REITs), funds, and developers participated in the Real Estate Assessment, representing USD 4.1 trillion AUM. The Assessment covers more than 100,000 assets (of which more than 66,000 reported at the asset level) across 64 countries.
What is the GRESB Real Estate Assessment?
The GRESB Real Estate Assessment is the investor-driven global ESG benchmark and reporting framework for listed property companies, private property funds, developers and investors that invest directly in real estate.
The Assessment is shaped by what investors and the industry consider to be material issues in the sustainability performance of real estate investments. The methodology is consistent across different regions, investment vehicles and property types and aligns with international reporting frameworks.
The data is self-reported by Assessment participants and subjected to a multi-layer validation process after which it is scored and benchmarked. The result is high-quality data that investors and participants can use in their investment, engagement and decision-making processes.
The Real Estate Assessment generates two benchmarks: The GRESB Real Estate Benchmark and the GRESB Development Benchmark.
The Real Estate Benchmark consists of participants completing both the Management and Performance Components and the Development Benchmark consists of participants completing both the Management and Development Components.
Real Estate Assessment Components
- Management Component – measures the entity’s strategy and leadership management, policies and processes, risk management and stakeholder engagement approach, comprising of information collected at the organizational level.
- Performance Component – measures the entity’s asset portfolio performance, comprising of information collected at the asset and at the portfolio level. It is suitable for any real estate company or fund with operational assets. The Component includes information on performance indicators, such as energy consumption, GHG emissions, water consumption and waste.
- Development Component – measures the entity’s efforts to address ESG issues during the design, construction, and renovation of buildings. This Component is suitable for entities involved in new construction (building design, site selection and/or construction) and/or major renovation projects, with on-going projects or completed projects during the reporting period
Benefits of Participating
|Improved ability to manage your portfolio and assets in the face of sustainability risks.||Insight into how to best capitalize on sustainability-related opportunities, such as lowering operating costs, meeting regulatory requirements and satisfying the developing preferences of corporate tenants.|
|Clearer picture of your ESG performance and how it compares against your peers.||Better understanding of the actions you can take to improve your ESG performance in the most efficient way.|
|Greater knowledge of investor needs and perspectives to enrich your investor engagement.||Improved opportunity to attract new investors, including long term investors and investors seeking more comprehensive risk and opportunity analysis.|
|Reduced time and effort needed to respond to ad-hoc requests relating to sustainability issues.||Ability to report validated ESG performance information to the market using a global industry standard.|
|More consistent messaging about your sustainability performance to your stakeholders.||Recognition that you have taken a significant step towards leadership on ESG issues.|
GRESB Real Estate Investor Members
More than 100 institutional investors, including pension funds and insurance companies, use GRESB data and analytical tools to optimize the risk/return profile of their investments. The Assessment provides a communication platform to improve engagement with investors and enables participants to report validated ESG performance information in a format and language that serves their needs.
The Assessment follows a regular annual timeline, with the Portal opening on April 1 each year. Participants complete the Assessment by reporting through the Portal. Prior to finalizing their submission, participants are given the opportunity to request a Response Check to minimize the risk of errors.
The submission deadline is July 1, which provides participants with a three-month window to complete the Assessment. Once all Assessments have been submitted and the Portal has closed, GRESB begins the process of validating, scoring and benchmarking the submitted data:
COMPANIES | FUNDS | SEPARATE ACCOUNTS | JVS
GRESB has established a robust data validation process to underpin the accuracy and reliability of its output. It is based on a three-layer data quality control process designed to ensure submission of high quality information. The approach to validation was developed by PwC and involves third party verification by GBCI.
2. Objective Scoring
The GRESB Scoring Model is based on an automated system, which uses a technology platform designed for GRESB by a third party that specializes in data analysis software development. The scoring is completed without manual intervention after data input.
3. Peer Benchmarking
Peer comparisons that take into account country, regional, sectoral and investment type variations provide a powerful lens through which to benchmark performance. Each participant is assigned to a peer group, based on the entity’s legal structure (listed/private), property type and geographical location of assets.
The Assessment Results are launched in October.
The GRESB Real Estate Benchmark consists of participants completing both the Management and Performance Components. The GRESB Development Benchmark consists of participants completing both the Management and Development Components.
Each Component determines an individual score (ie: Management Component Score, Performance Component Score, Development Component Score). The GRESB Scores and GRESB Ratings only apply to entities completing all relevant Components for their portfolios, as illustrated in the diagram on the right.
In addition to the GRESB Score and GRESB Rating, participants receive the GRESB Benchmark Report and Portfolio Analysis Tool. These provide an in-depth analysis of sustainability performance, enable detailed peer group comparisons and highlight industry best practices.
First-year participants can submit the Assessment without providing GRESB Investor Members with the ability to request access to their results. This is referred to as a “Grace Period”.
Participate in the Assessment
We recognize all participants completing the Assessments as GRESB Participant Members. This underlines the contribution that participants make to our collective vision of sustainable real assets and the collaborative effort that underpins our work.
Managers who participated in the 2019 Assessment
If you participated in the 2019 GRESB Assessment we are pleased to recognize you as a GRESB Participant Member.
You can take advantage of lower fees for multiple participating entities by paying annually for your membership, before the Portal opens on April 1, 2020. See 2020 Annual Fee Schedule.
You can also pay at the time of submission but will not benefit from the lower multiple-entity pricing that applies to the annual invoice option.
For the 2020 Assessment, the Response Check, Customized Benchmark Reports, training seats and other products and services) are no longer bundled with the participation package. This means you can choose only those products and services you are interested in. See fees for products and services.
GRESB Participant Membership is open for fund managers, companies and asset operators participating in the GRESB Assessments.
As a GRESB Participant Member, you’ll have access to high-quality ESG data and powerful analytical tools to benchmark your ESG performance, identify areas for improvement and engage with investors.
You’ll also have the opportunity to sit on Advisory Boards, regional Benchmark Committees (where applicable) and to join Industry Working Groups to inform the future content of the GRESB Assessments.