Overview for Real Estate Portfolio Owners
GRESB (Global Real Estate Sustainability Benchmark) is a member-led organisation, which sets a global benchmark for environmental, social and governance (ESG) standards. This global standard is set through yearly participation in self-assessments, scoring and peer-to-peer reviews.
Investors and asset managers rely on GRESB assessments and results to provide a minimum standard for ESG and property portfolio performance.
GRESB assesses a wide variety of performance metrics. These metrics and their results are used for enhanced communication among stakeholders and to improve the material performance of portfolios.
How participants use GRESB:
GRESB is a globally recognised standard for ESG data and insights. It allows members to compare assets, improve engagement among stakeholders, and improve ESG performance.
- GRESB data is used by investors to monitor ESG-related risks and opportunities.
- Asset managers including REITS, real estate owners and fund managers use ESG data to monitor portfolio performance and to engage with investors.
- Partners provide ESG services and solutions to improve and meet ESG and GRESB standards.
GRESB assessment takes place on a yearly cycle. Participants conduct self-assessments and peer review results to set an industry standard.
The benchmarks created by GRESB assessments are:
- Real Estate Benchmark
- Real Estate Development Benchmark
- Infrastructure Fund Benchmark
- Infrastructure Asset Benchmark
GRESB Real Estate Assessment:
Real estate owners, funds and asset managers who are members of GRESB can take part in the Real estate Assessment.
Members must pay a yearly fee to take part in the GRESB assessment cycle. Information regarding fees and the payment schedule can be found by contacting GRESB directly.
The assessment provides relevant, validated and peer-reviewed data for real estate owners, managers and investors. In 2021 the real estate assessment represented $5.7 trillion in assets.
Assessment indicators are guided by what investors and the industry deem to be material issues in the sustainability performance of real estate. Real estate owners need to utilise online resources provided by GRESB.
Important Assessment Milestones:
- On March 1st– Real estate and infrastructure assessments reference guides are released.
- On April 1st– the GRESB portal is open to participants. Real estate owners must submit indicator responses and provide information regarding their portfolio and assets under management. The portal closes on July 1st.
- On October 3rd results are released for both participants and investors.
The GRESB 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
GRESB Real Estate Core Components:
The management component – This looks at the policies, management and stakeholder engagement of entities.
The performance component – Performance indicators include energy consumption, GHG emissions, water consumption and waste.
The development component – This is suitable for entities undergoing major construction and renovations and looks at attempts to address ESG performance and issues.
Taking part in the real estate assessment allows members to identify areas of risk and opportunity, improve investor engagement and gain a clear picture of ESG performance.