Coverage and growth
Participation leaps 22% amid accelerating investor demand for ESG data
Participation in the 2020 Assessment grew by 22% to cover 1,229 portfolios (2019: 1,005) worth more than USD $4.8 trillion AUM.
This increase in participation, coming despite the challenges of the covid-19 crisis, shows an industry responding decisively to the accelerating investor demand for comparable ESG data.
The private sector led the growth trend, with participation growing 32% to cover 953 non-listed portfolios (2019: 723). On the listed side, 271 REITs and property companies reported to GRESB (2019: 240), an increase of 13% on the previous year.
Benchmark size and asset location
96,000 assets, across 64 countries represented in the benchmark
The global map shows the breadth of the GRESB Real Estate Assessment. Each of the green dots represent individual assets equating to over 96,000 assets, across 64 countries, representing USD $4.8 trillion in AUM.
Over $2 trillion is represented by the Americas, and $1.2 trillion in Europe. The largest increase in value (24%) came from the Asian markets – now with $1.1 trillion AUM.
2020 marked an inflection point for the GRESB Real Estate Assessment
We introduced mandatory asset-level data reporting to improve data quality and implemented a new reporting structure that placed a higher weighting (70%) on the Performance Component towards the overall GRESB Score. This benchmark-wide score reset resulted in the average GRESB Score falling to 70 (2019: 72).
The regional breakdown shows Oceania still ahead, with an average GRESB Score of 77. The Asian real estate sector comes in second, with 72, followed by Europe at 69.5, just slightly ahead of the Americas at 69.
A restructured Assessment providing more insight at the Aspect level
The 2020 Real Estate Assessment is structured into 2 Components and 14 Aspects, each addressing a specific type of ESG issue. The Management Component covers the 5 first Aspects and the Performance Component covers the last 9.
Improvements on last year are primarily due to increased granularity in the key performance indicators (now broken down into Energy, GHG, Water and Waste) and stakeholder engagement (which now identifies Tenant & Communities as a separate Aspect).
Average GRESB Scores independent of Assessment restructuring
When controlling for changes made to the 2020 Assessment, average GRESB Scores increase
The waterfall chart provides the quantified contribution of all material changes to the Assessment this year. The analysis provides an estimate of changes to ESG performance by markets globally, independent of the Assessment’s restructuring.
The results show 2020 average GRESB Scores increasing by 1.7 points, outperforming the drop in scores resulting from the recalibration of the framework.
More accurate energy intensities globally based on a larger number of assets
In 2020 the asset-level reporting became mandatory in the Real Estate Assessment. This requirement came with enhanced quality controls at the asset-level leading to higher data quality in the benchmark.
The total number of assets reported was 96,000 out of which 36,000 presented sufficient data coverage to be included in calculation of energy intensities (note: property type “Other” is not included in the chart).
More granular and higher quality data are necessary to provide capital markets with better consolidated ESG performance metrics.
CRREM analysis provides a bottom-up understanding of portfolio alignment with Paris goals
GRESB is a member of the Carbon Risk Real Estate Monitor (CRREM) consortium. CRREM portfolio performance projections are built up from asset-level data and align closely with the performance data reported in the 2020 Assessment.
Early analysis of participants who were able to provide 100% data coverage in Europe shows that the average GHG intensity of participants exceeds the CRREM 2C decarbonization pathway by 2035, and the 1.5C pathway as early as 2027.
2020 is the fourth year GRESB has evaluated the ESG transparency levels of listed companies and REITs through GRESB Public Disclosure
The scope of the analysis includes listed companies in developed and emerging markets and is available to GRESB Investor Members subscribed to listed real estate data. See 2020 Public Disclosure Universe.
GRESB Public Disclosure consists of 22 indicators that contribute to a 70 point maximum. Constituents are assigned a GRESB Public Disclosure Level from A to E based on the points received. The 2020 guidance and scoring methodology is available here.
Transparency levels in the Public Disclosure dataset correlate with ESG performance measured by the GRESB Real Estate Assessment
271 REITs and property companies participated in the GRESB Assessment this year, demonstrating their commitment to ESG transparency to investors.
We observe a positive correlation between transparency levels measured by the Public Disclosure dataset and ESG performance measured by the GRESB Real Estate Assessment (a global coefficient of 0.65).