GRESB

gresb

What is GRESB

GRESB is an independent organization that provides annual ESG performance assessments and benchmarks of investors and managers of real estate and infrastructure investment funds.

GRESB assessments therefore collect information relating to ESG performance and best sustainability practices for funds and companies around the world: the verified and standardized information provided by GRESB allows you to evaluate your company’s ESG (Environmental, Social and Governance) strategy, to have reference benchmarks and identify any areas of intervention.

GRESB Real Estate Assessments

A GRESB assessment provides property managers with valuable ESG data, as well as tools and opportunities to engage investors. In 2023, more than 2,000 real estate companies, REITs, funds and developers with total assets of $7.2 trillion participated, covering more than 170,000 assets in 75 countries.

The GRESB assessment evolves each year to reflect what investors and the industry consider to be material issues in the sustainability performance of real estate investments.

Evaluation participants self-report data on an annual basis between April 1 and July 1, and the data is subject to a multi-level validation process after which it is evaluated and compared. At the end of this process, validated, high-quality data is obtained that investors and participants can use in their investment, engagement and decision-making processes, as well as to identify risks and opportunities.

98% of investors use ESG data in their investment process

Global investors and stakeholders attribute added value to companies that enjoy high certified ESG performance. A GRESB assessment, therefore, in addition to providing investors with reliable ESG data to paint a more complete picture of the current and future financial risks and opportunities of various companies, can help to:

  • Measuring ESG performance
  • Improve investor and manager engagement
    Compare your resources with those of your competitors
  • Identify areas for improvement

Evaluation process

The GRESB Real Estate Assessment is a systematic process that involves phases with well-defined time deadlines

  1. Validation: GRESB has established a robust data validation process to support the accuracy and reliability of its results. It is based on a three-level data quality control process designed to ensure the presentation of high-quality information. The validation approach was developed by PwC and involves third-party verification by Sustainability Assurance Services.
  2. Objective Scoring: The GRESB scoring model is based on an automated system, using a technology platform designed for GRESB by a third party specializing in data analytics software development. Scoring is completed without manual intervention after data entry.
  3. Peer Benchmarking: Peer comparisons that take into account country, regional, sector and investment type variations provide a powerful lens through which to evaluate performance. Each participant is assigned to a peer group, based on the legal structure of the entity (listed or private), the type of ownership and the geographic location of the assets.

What does a real estate valuation involve

The GRESB rating assessment examines three aspects:

  • Management Component: Measures an entity’s strategy and leadership, policies and processes, risk management and approach to stakeholder engagement using information collected at the organizational level.
  • Performance Component: measures the performance of an entity’s asset portfolio using asset-level and portfolio-level information. Suitable for companies or funds with operational activities, it includes information on performance indicators, such as energy, greenhouse gas emissions, water and waste.
  • Development Component: measures an entity’s efforts to address ESG issues during the design, construction and renovation phases of a building. It is suitable for entities with completed or ongoing new construction projects (building design, site selection or construction) or undergoing major renovation.

Evaluation results

In October, assessment participants receive assessment results and related benchmarking reports based on the assessment components they have completed.

Each of the three components examined has its own score, which contributes to the final GRESB score and the entity’s GRESB rating. For a company going through the GRESB assessment, these results:

  • provide an in-depth analysis of sustainability performance
  • allow detailed comparisons between groups of similar companies
  • highlight industry best practices
  • allow you to put into practice strategies to improve ESG reporting practice

Macro Design Studio: your consultant for the GRESB evaluation

Does your company want to undertake the process of obtaining the GRESB assessment? Contact us, we at Macro Design Studio can provide you with the necessary support to obtain your GRESB rating.