Key financial benefits of GRESB participation 

What are the financial benefits of GRESB participation? Drawing on industry insights and academic research, we explore how sustainability practices drive financial performance, attract investors, and secure a competitive edge in the real estate market.

1. Cut borrowing costs with green or sustainability-linked loans

Source: Sustainability-linked loans 

GRESB participation, peer group rankings, and overall ratings or scores can be leveraged to construct sustainability-linked loans and negotiate favorable terms. Borrowers meeting sustainability targets tied to GRESB participation often enjoy reduced borrowing costs, improving their bottom line while advancing long-term sustainability goals. 

2. Attract global investors

Source: 2022 GRESB Investor Member Survey Findings 

GRESB participation signals a commitment to sustainability, making companies more attractive to global investors that consider ESG topics. 75% of Investor Members engage with their managers to request participation in GRESB, with 44% of investors mandating participation in their agreements. 

3. Join the cohort of best-in-class funds that experience increased returns

Source: The link between GRESB participation and financial returns 

According to academic studies, funds that report to GRESB experience increased returns. For example, a study in “The Journal of Real Estate Finance and Economics” found a mean increase of 1.94% in quarterly fund performance for those engaging in ESG reporting (Devine, Sanderford, and Wang 2024, 161). GRESB participation and performance are also strong predictors of fund returns, particularly in price appreciation. 

4. Reduce operating costs & increase property value

Source: GRESB Public Results 2024  

GRESB participation provides a blueprint to engage in environmental initiatives, such as energy efficiency, resource management, and sustainable building certifications, that can result in reduced operating expenses. These sustainability improvements not only decrease costs but also enhance property values over time, leading to higher long-term financial returns. 

5. Increase tenant satisfaction and retention

Source: Manager case study: Swire Properties  

Adopting GRESB standards supports social initiatives, including tenant satisfaction and community engagement. These factors directly contribute to higher tenant retention rates and attract quality tenants, providing stable income streams and reducing vacancy periods. 

6. Improve operational efficiency & risk mitigation

Source: Recommendations of the Task Force on Climate-related Financial Disclosures 

Implementing GRESB’s governance practices boosts efficiency, attracts investors, and facilitates better financing terms. Addressing climate risks through stronger infrastructure and low-carbon strategies reduces regulatory exposure and financial losses, while enhancing resilience. These efforts improve market positioning and create opportunities for growth in sustainable sectors, driving long-term profitability. 

7. Unlock competitive advantage

Source: Impact of ESG on European non-listed fund performance 

By doing GRESB and learning from industry leaders, you are set on a path that is defined by outperformance against non-GRESB participants. According to research commissioned by INREV and GRESB, funds participating in GRESB outperformed non-participants by 1.8% annually, even when controlled for size and leverage differences (INREV & GRESB, 2023). 

8. Support long-term financial stability

Source: GRESB: The Global Standard for Real Estate Sustainability  

GRESB’s framework helps companies comply with evolving ESG regulations, manage climate-related risks, and reduce penalties. This not only stabilizes finances but also enhances market reputation, attracting long-term investment and offering steady financial performance.  

Learn more about GRESB

Contact us