— 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 2020, more than 1,200 property companies, real estate investment trusts (REITs), funds, and developers participated in the Real Estate Assessment, representing USD 4.8 trillion AUM. The Assessment covers more than 96,000 assets 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 between April 1 and July 1 each year 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
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.
Benefits of Participating
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”.