GRESB is the Global Sustainability benchmark for the Real Estate and Infrastructure sectors. It is an annual assessment to measure an organization’s ESG performance based on a very specific set of criteria around Performance and Management indicators.
With over 170+ investor members, approximately 2,500 participants from Real Estate and Infrastructure, GRESB has become the most widely recognized and accepted Benchmark standard for Real Assets.
For companies operating in the Real Estate Space, be it Residential, Office, Retail, Industrial, Healthcare, Mixed Use, Hotel, or Diversified; reporting to GRESB not only offers’ them a competitive edge in the Market from a Benchmarking perspective but also helps with Project Financing. GRESB’s investor members have made it mandatory for companies to report to qualify for their project financing needs.
On the other hand, infrastructure companies operating in sectors such as Data Infrastructure, Energy and Water Resources, Environmental Services, Network Utilities, Power Generation across Renewables, Transportation, and Social Infrastructure can all benefit from sustainable financing through GRESB’s investor members who offer Sustainability Linked Loans based on an organization’s ESG performance and targets.
The Company must familiarize itself with the GRESB Assessments (Real Estate, Infrastructure Fund, Infrastructure Asset, etc.), their respective components (Management, Performance, and where applicable, Development), and how performance is measured. Understand the indicators related to environmental (e.g., energy, GHG, water, waste), social, and governance aspects, and their focus on data coverage, asset-level performance, and management practices.
GRESB requires comprehensive data, often at the asset level, for performance indicators (e.g., energy consumption, GHG emissions, water usage, waste generation). Collect formal policies, internal procedures, training records, audit reports, building certifications (e.g., LEED, BREEAM), and quantitative performance data. Ensure the data is accurate, consistent, and covers the reporting period.
Implement and document formal policies, procedures, and management approaches across key ESG areas, including leadership, risk management, stakeholder engagement, and reporting. GRESB assesses not just performance, but also the systems in place to manage ESG issues effectively.
Leverage the official GRESB Standard & Reference Guides, Scoring Documents, and the GRESB Portal. These resources provide detailed guidance on each indicator, scoring methodologies, and the technical requirements for data submission. Consider using GRESB’s QuickStart or Pre-Submission Check services if you are a new participant or want to verify your submission.
Populate the online questionnaire in the GRESB Portal diligently. Ensure all questions are answered comprehensively, with supporting data and documentation clearly linked. Pay close attention to data quality and consistency, as GRESB employs a robust multi-layer validation process.
GRESB operates on a fixed annual reporting cycle (typically April 1 to July 1 for submissions). Be aware of these deadlines and plan data collection and submission process accordingly to avoid missing the window.
Before final submission, conduct thorough internal reviews to identify any errors, omissions, or inconsistencies. GRESB also has a validation process post-submission to ensure data accuracy and reliability. Be prepared to address any validation queries.
Upon receiving your GRESB Scorecard and Benchmark Report, meticulously analyze your performance against peers and identify “Areas for Improvement.” Develop a concrete action plan to address these areas, continuously track progress, and communicate your sustainability achievements to investors and stakeholders to demonstrate ongoing commitment and drive future GRESB rating improvements.
After initially defining the scope of your GRESB assessment (e.g., specific funds, assets, or developments to be included), the critical next step is to collect all relevant documentation and data. This includes detailed asset-level performance data (energy consumption, GHG emissions, water usage, waste generation), formal policies, detailed procedures, records of actions taken, and evidence of implementation across environmental, social, and governance (ESG) themes. Leveraging dedicated real estate or infrastructure ESG management software or platforms can significantly streamline this complex data compilation process, ensuring accuracy and saving valuable time, especially for large portfolios.
Once a baseline GRESB Assessment is completed and the initial score and benchmark report are received, real estate and infrastructure entities should immediately set clear improvement targets. These targets should directly address the “Areas for Improvement” highlighted in the GRESB Scorecard and Benchmark Report. For example, a fund might aim to improve its GRESB score by 10 points within three years by increasing its asset-level data coverage, implementing a formal tenant engagement program, or achieving specific energy reduction targets across its portfolio.
Regular monitoring and diligent implementation of corrective action plans are essential to track progress against improvement targets. Companies must establish a robust system for periodic reviews, ensuring that identified weaknesses in ESG performance or management practices are addressed and new initiatives (e.g., energy efficiency retrofits, social impact programs) are effectively integrated into daily operations. This demonstrates continuous improvement and a proactive approach to ESG risks and opportunities.
While GRESB conducts its own rigorous data validation processes, internal validation and, where applicable, external certifications (e.g., ISO 50001 for energy management, green building certifications like LEED or BREEAM for assets) or third-party audits of specific ESG practices can significantly bolster the credibility of reported information. This enhances the reliability of the entity’s sustainability performance and boosts confidence among investors and stakeholders who rely on GRESB data for investment decisions.
Finally, real estate and infrastructure entities need to report and share their GRESB score, benchmark performance, and improvement journey. This transparent communication demonstrates a strong commitment to ESG principles and can significantly enhance an entity’s reputation, attract responsible investors, improve access to capital, and provide a competitive edge in the increasingly ESG-conscious financial markets.
Each organization’s journey to a strong GRESB rating will vary based on their existing ESG maturity and the complexity of their real asset portfolio. There’s no single rigid path, but a strategic approach focused on building foundational elements first is most effective. Organizations looking to participate in GRESB assessments and enhance their scores can look at the following steps:
– Prioritize asset-level performance data by establishing or refining processes for collecting granular, asset-level data for energy, GHG emissions, water, and waste. Focus on data quality, accuracy, and completeness as this forms the backbone of the “Performance” score.
Document concrete management systems and procedures that show how ESG is integrated into the entire investment and asset management lifecycle, from acquisitions to operations and development.
Actively involve key internal data owners like property managers, finance, and legal teams. Clearly define their roles in data contribution to ensure comprehensive information for the “Management” component.
Create and implement strategies to engage with tenants on ESG initiatives (e.g., green leases) and assess/engage with key suppliers on their sustainability practices.
Integrate ESG into Financials: Demonstrate how ESG considerations are embedded within your financial decision-making and risk management frameworks, such as assessing climate-related financial risks.
Invest in or enhance the use of sustainability management software to streamline the collection, aggregation, and reporting of large volumes of asset-level data, improving accuracy and efficiency.
Sustainext provides specialized support in GRESB Assessments and Reporting. Our Team of Accredited GRESB professionals can support you throughout the entire process from Data Collection to Assessment Submission and on-going reviews to enhance performance.
As a Premier Data Partner for both Real Estate and Infrastructure Sustainext is well positioned to assist clients with their Assessments, be it a Gap Assessment for first-time reporters or providing guidance on Scorecards and Benchmark Reports to seasoned reporters. Sustainext simplifies the entire process using a combination of Consulting and Technology that provides clients with a Managed Service that is cost effective, improves efficiencies and accuracies, and reduces turnaround times leading to greater client satisfaction.
