“GRESB is a mission-driven and industry-led organization that provides actionable and transparent environmental, social and governance (ESG) data to financial markets. We collect, validate, score, and independently benchmark ESG data to provide business intelligence, engagement tools, and regulatory reporting solutions for investors, asset managers, and the wider industry.”GRESB
GRESB is used by asset owners and investors to measure the sustainable performance of assets/portfolios, then by investors to monitor ESG related risks, and to advise and engage with investment managers.
Why get GRESB certification?
- Applies framework of international best practice standards
- Facilitates peer-to-peer performance evaluation
- Facilitates internal performance self-evaluation & improvements
- Satisfies funder / lender / investor requirements
SCORING
Asset or Portfolio GRESB Ratings are based on their GRESB Score relative to all other GRESB participants, on a scale of 1 to 5 stars, with the top 20% entities each year receiving a 5 star GRESB rating and recognition for being one of the industry leaders. So, GRESB ratings are refreshed annually and give investment managers, asset owners, and the wider market an up-to-date and globally relevant view of the status of their assets and ESG performance in the wider real estate industry.
THE PROCESS
The GRESB Assessment Portal opens on the 1st of April and closes on the 1st of July every year. After submission of all assessments and closing of the portal, GRESB begins the process of validating, scoring and benchmarking the submitted data. The GRESB Assessment is split into three parts: the management component (30%), the performance component (70%), and the development component (70%). All assets/portfolios are assessed upon the management component, which refers to the entity’s strategy, policy, risk management approach etc. using organisational data, they will then also be assessed on performance or development components depending on the stage of the asset (operational and occupied or under design and construction). Participants will then receive either a ‘Standing Investments’ or ‘Development’ Benchmark Report, or both for portfolios with standing and development projects. Final results are released annually on October 2nd, where gap analysis should begin for the next year’s assessment process.
THE UTOPI IMPACT
Utopi can influence 14 indicators over a total of 49.75 points across the GRESB Assessment, with the greatest impact lying within the performance component. This is thanks to the benefits our products provide, such as access to baseline data on energy consumption, GHG emissions, renewable energy use, environmental quality (to name just a few). And, accurate and high level data coverage, ease of access to review and export data, informed improvement targets and simple monitoring of progress against targets.
It’s clear, Utopi can provide an immense impact on asset and portfolio GRESB scoring, and we haven’t even gone into our influence on tenant engagement indicators… and more!
Keep an eye out on our socials for a deep dive on all the GRESB indicators currently supported by Utopi. And see our next piece in this series all about BREEAM.