Overview of GRESB Assessments
GRESB Real Estate Assessment
The GRESB Real Estate Assessment is the global standard for ESG benchmarking and reporting for real estate companies, funds, developers, and investors. It evaluates performance across three ESG components - Management, Performance, and Development - and aligns with international reporting frameworks. The assessment provides investors with actionable information, comparative business intelligence, and a communication platform.
(Real Estate) Supplement: Nareit Leader in the Light
GRESB collaborates with Nareit, encouraging its members to complete the GRESB Real Estate Assessment. The Assessment forms the basis for Nareit's annual Leader in the Light Award competition, recognizing REITs in various property sectors. To participate, members must complete both the GRESB Real Estate Assessment and the Leader in the Light Supplement.
GRESB Infrastructure Assessment
The GRESB Infrastructure Assessments engage institutional investors, fund managers, and infrastructure companies. The Fund Assessment evaluates ESG performance for infrastructure funds and portfolios, while the Asset Assessment is completed by underlying assets. The assessments cover various infrastructure sectors and provide investors with actionable information and comparative business intelligence.
GRESB (Real Estate and Infrastructure) Public Disclosure
GRESB Public Disclosure evaluates ESG disclosure by listed property companies and investment vehicles. It is based on indicators aligned with the GRESB Real Estate and Infrastructure Assessments. Public Disclosure data is collected from publicly available sources and allows investors to access ESG disclosure documents and compare against a full listed investment portfolio.
Impact of Covid-19 on the 2021 GRESB Real Estate Assessment
The impact of Covid-19 on the real estate industry is significant and varied. To ensure fairness and applicability, the 2021 Assessment will remain stable, with no changes to data collection, scoring, and benchmarking processes. However, an open text box will be added to the Benchmark Reports, allowing participants to communicate their results to investors effectively.
Assessment Structure
The GRESB Real Estate Assessment generates two benchmarks: the Real Estate Benchmark and the Development Benchmark. The Real Estate Benchmark evaluates performance in Management and Performance components, while the Development Benchmark evaluates Management and Development components.
Real Estate Assessment Components
- The Management Component measures strategy, leadership, risk management, and stakeholder engagement.
- The Performance Component evaluates asset portfolio performance, including energy, GHG emissions, water, waste, and certifications.
- The Development Component assesses efforts to address ESG issues during building design, construction, and renovation.
Scoring Methodology
The GRESB Score is an overall measure of ESG integration into companies' and funds' management and practices. It is based on the Real Estate Score, which comprises Management Component Score, Performance Component Score, and Development Component Score. The GRESB Rating reflects the quintile position of the Real Estate Score relative to the GRESB universe.
Reporting Scope and Boundaries
GRESB requires property companies and funds to report on their whole portfolio, including both landlord and tenant controlled areas. Assets owned through joint ventures must also be reported. Landlord controlled areas refer to spaces where the landlord has operational control, while tenant controlled areas are spaces where the tenant has the greatest authority to implement policies.
2021 GRESB Real Estate Assessment Changes
Changes to the 2021 Real Estate Assessment are limited to the integration of the Resilience Module and minor improvements. The module includes indicators related to risk identification and impact assessment of climate-related risks. These indicators are not scored in 2021 but align with TCFD reporting recommendations.
Data Validation Process
GRESB's data validation process ensures the accuracy and reliability of reported ESG data. It includes both automatic and manual validation, with rules set by GRESB and validation performed by a third-party provider. Participants can contact the GRESB Helpdesk during the Review Period for any questions or disputes regarding validation decisions.
Conclusion
GRESB is leading the way in ESG benchmarking for real assets. Through its comprehensive assessments, GRESB provides investors with actionable insights, comparative business intelligence, and