GRESB Real Estate Assessment

The Assessment offers real estate managers highly relevant and validated ESG data and powerful analytical tools to benchmark ESG performance, identify areas for improvement and engage with investors.

In 2021, more than 1,500 property companies, REITs, funds and developers participated in the Real Estate Assessment, representing $5.7 trillion in assets under management. The Assessment covers nearly 117,000 assets across 66 countries.

What is the GRESB Real Estate Assessment?

The GRESB Real Estate Assessment underpins 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 regions, investment vehicles and property types, and it aligns with international reporting frameworks.

The data is self-reported each year by Assessment participants between April 1 and July 1, subject to a multilayer validation process after which the data is scored and benchmarked. The result is high-quality, validated 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, which considers management and performance factors
  • The GRESB Development Benchmark, which considers management and development factors

Why asset managers participate in GRESB Assessments

  • Identify areas of risk, opportunity and impact in your portfolio and assets
  • Attract new investors seeking more comprehensive risk, opportunity and impact analysis
  • Systematically improve your investor engagement
  • Gain a clear picture of your ESG performance, how it compares against peers and what you can do to improve
  • Report validated ESG performance information to the market using a global industry standard

What the real estate assessment entails

The Management Component measures an entity’s strategy and leadership; policies and processes; risk management; and its stakeholder engagement approach. It is drawn from information collected at the organizational level.

The Performance Component measures an entity’s asset portfolio performance, drawn from information collected at the asset and portfolio levels. It is suitable for any real estate company or fund with operational assets and includes information on performance indicators, such as energy consumption, GHG emissions, water consumption and waste.

The Development Component measures an entity’s efforts to address ESG issues during a building’s design, construction and renovation phases. This component is suitable for entities with completed or ongoing projects in new construction (building design, site selection or construction) or under major renovation.

Assessment process

The GRESG Real Estate Assessment is a systematic process for companies, funds, separate accounts and joint ventures.

Validation

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 SRI.

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.

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 or private), property type and geographical location of assets.

Assessment results

In October, assessment participants are provided with the results of their assessment and the relevant benchmarking reports based on which assessment components they complete.

Each component (management, performance and development) carries its own score, which is factored into the entity’s GRESB Score and GRESB Rating.

In addition to these results, participants receive the Portfolio Analysis Tool and the GRESB Benchmark Report (the Real Estate Benchmark if they complete the management and performance components and the Development Benchmark if they complete the management and development components). 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.”

See key dates for the Assessment

Interested in the Real Estate Assessment?