GRESB stands for Global Real Estate Sustainability Benchmark. It is an industry-driven organisation that assesses the environmental, social, and governance (ESG) performance of real estate portfolios and infrastructure assets around the world.
GRESB provides a benchmarking platform and assessment framework that allows real estate companies, funds, and investors to measure and compare their ESG efforts and performance against industry peers.
GRESB was established in 2009 as a response to the growing demand for standardised and transparent ESG reporting in the real estate sector. The organisation’s goal is to drive sustainability improvements and accountability within the real estate industry by promoting best practices and providing actionable insights for decision-making.
Key features of GRESB include:
Assessment Framework: GRESB provides an annual assessment that covers various aspects of ESG performance, including energy and water consumption, carbon emissions, waste management, social engagement, governance practices, and more.
Benchmarks: GRESB assigns benchmark scores to participating real estate entities based on their ESG performance. These scores provide a comparative measure against peers and industry standards.
Investor Focus: GRESB is widely used by institutional investors, asset managers, and pension funds to assess the sustainability of real estate and infrastructure investments.
Data and Reporting: GRESB collects and aggregates ESG data from participating entities, which is used to generate industry insights and trends. This data helps investors and companies make informed decisions regarding sustainability strategies.
Global Reach: GRESB operates internationally, with participants from various regions, including North America, Europe, Asia, and Australia.
Continuous Improvement: GRESB encourages participating entities to make improvements in their ESG performance over time by identifying areas for enhancement and highlighting best practices.
By participating in GRESB assessments, real estate companies and funds can demonstrate their commitment to sustainability, attract responsible investors, and contribute to the overall advancement of ESG practices within the real estate and infrastructure sectors.
It’s worth noting that GRESB primarily focuses on the real estate and infrastructure industries, while other ESG benchmarking organisations like CDP (formerly Carbon Disclosure Project) and DJSI (Dow Jones Sustainability Indices) cover a broader range of industries.