Climate change presents a serious challenge, with the real estate sector being one of the major contributors to environmental impact, contributing to over 40% of global emissions. Hence making it highly essential to ensure that real estate developers and asset managers ensure sustainable practices.
Furthermore strengthening the case for sustainable investment practices in real estate for minimising climate risks, enhancing long-term economic value, and appealing to environmentally aware buyers.
Benchmarks like the Global Real Estate Sustainability Benchmark (GRESB) empower real estate companies to assess and improve their ESG performance, compare it with industry peers, and attract sustainability-focused investors.
What is GRESB?
GRESB launched in 2009, with an initial focus on sustainability in the real estate sector. It now also includes infrastructure investments, such as renewable energy, public utilities, and infrastructure funds with a focus on sectors such as transportation, energy, water, telecommunications, and social infrastructure.
GRESB hence is essentially a crucial component to benchmark sustainability in multiple industries falling under the larger umbrella of the built environment sector.
Who is it for?
Real estate funds, property companies, REITs, real estate developers, infrastructure fund managers and asset operators use GRESB to assess their ESG performance. This is done in a standardised, globally recognized framework so both investors and managers can act on ESG data and insights.
Through a GRESB Membership, data is reported to the relevant GRESB Assessment each year on a regular cycle and are validated by a third party and scored before being used to generate ESG benchmarks according to industries - helping members compare apples to apples.
Why should my company have a GRESB assessment?
GRESB assessments offer significant benefits for real estate companies, funds, and investors, fostering sustainability across the industry. They drive competition and encourage businesses to adopt innovative, efficient practices, benefitting both the environment and their bottom line.
Market Competitiveness
GRESB assessments establish benchmarks for global sustainability performance within the real estate sector, allowing companies and funds to gauge their progress against peers and uncover areas for improvement.
Access to Capital and Investment
With today’s investors increasingly prioritising sustainability, strong GRESB scores enhance a company’s appeal, attracting investment from environmentally conscious backers. This scoring also provides investors and asset managers with valuable insights for informed ESG-based investment decisions.
Enhanced Sustainability Performance
GRESB provides companies with insights into their sustainability achievements and progress, helping them track against goals and encouraging proactive adjustments for improvement.
Risk Management
By spotlighting ESG risks and opportunities within portfolios, GRESB assessments support real estate companies and funds in managing these risks, increasing resilience to challenges such as climate change and social issues.
Boosted Brand Value
Higher GRESB scores contribute to brand strength and reputation, making companies more attractive to stakeholders, including customers, partners, and potential business opportunities.
Innovation Catalyst
GRESB promotes the adoption of cutting-edge technologies and sustainable practices, encouraging real estate companies and funds to stay ahead of trends and pursue continuous improvement.
Commitment to a Greener Future
Above all, GRESB assessments inspire participants to pursue higher scores, fostering a culture of environmental consciousness and action that drives meaningful, positive environmental impact.
What is the process of a GRESB assessment?
The GRESB assessment process requires real estate companies and funds to submit data on their environmental, social, and governance (ESG) performance. The reporting typically involves the following steps:
1. Registration: Companies and funds register to participate in the GRESB assessment.
2. Survey Completion: Participants complete a comprehensive survey covering various ESG factors. The survey includes both quantitative and qualitative questions, and participants must provide accurate evidence to support their answers to maximize the value of their participation.
3. Validation: GRESB’s rigorous three-layer data quality control process ensures that the data submitted is accurate and consistent.
4. Scoring: Participants receive scores based on their performance across multiple ESG indicators. Scoring is handled by a third-party technology platform for data analysis, with no manual interference, and benchmarks are set against regional and sector peers.
5. Peer Benchmarking: Participants receive a GRESB benchmark report, placing them in a relevant peer group. The report facilitates in-depth peer comparisons and highlights best practices across the industry.
How does the scoring work?
GRESB scores reflect a combination of data quality, performance, and benchmarking, rated on a 0 to 100 scale, with higher scores representing stronger sustainability performance. The final score allows real estate portfolios to benchmark their sustainability achievements against those of their peers.
Who is doing GRESB?
https://www.gresb.com/nl-en/gresb-participant-members/
How can Breathe ESG help me with GRESB assessments?
As a premier GRESB and API partner, Breathe ESG offers powerful solutions to support companies in achieving higher GRESB scores.
Our platform enables seamless data management, allowing companies to automate their GRESB submissions through integration with GRESB’s systems.
By leveraging Breathe ESG’s tools, companies can streamline data collection, validation, and reporting, ensuring accuracy and compliance with GRESB’s rigorous standards. This automation not only saves time but also enhances data quality, leading to improved performance insights and stronger benchmarking results, positioning companies for competitive advantage in sustainability.
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