The GRESB expands its coverage to US $5.3 trillion AuM amid growing demand for comparable and reliable ESG data
The transition to a sustainable real asset industry is one of the most fundamental challenges to carry. For investors, participating to this transition can only be met with reliable ESG information, meaningful global benchmarks and collective action from all stakeholders working towards a sustainable future.
At a global level, the leading Environmental, Social and Governance (ESG) benchmark for real estate and infrastructure investments across the world, the GRESBassesses the ESG performance of real assets, providing standardized and validated data to the capital markets.
This year, the participation in the GRESB Assessments has grown by 18% to cover the ESG performance of more than 1,700 real estate and infrastructure portfolios and assets, with more than US $5.3 trillion AuM ( against 4.5 trillion in 2019)
Their goal is to give clarity and direction to the real asset investment market as a means to address complex sustainability challenges. GRESB data is used by hundreds of capital providers and thousands of asset managers to benchmark investments across portfolios and understand the opportunities, risks and choices that need to be made as the industry transitions to a more sustainable future.
The benchmarks also provide an objective reference point on national and regional performance and help to track industry progress against normative guidelines such as the UN Sustainable Development Goals; decarbonization pathways such as those defined by Carbon Risk Real Estate Monitor (CRREM) for the real estate sector and emerging disclosure regulations including the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD), and the EU ESG Regulations.
In 2020, the Real Estate Coverage is of 1,229 (against 1005 in 2019) property companies, REITs, private equity funds and real estate developers participated in the 2020 Real Estate Assessment, generating a benchmark that covers US $4.8 trillion AuM (against 4.1 trillion in 2019). Data on key environmental performance indicators is reported at asset level and covers more than 96,000 assets, across 64 countries. The data combines high-level overall scores with in-depth information across hundreds of ESG metrics, including performance indicators such as energy consumption, GHG emissions, water consumption and waste.
For private market investors, the GRESB benchmark covers 957 (against 723 in 2019) non-listed funds, representing 79 of IPE Real Assets’ Top 100 Global Real Estate Investment Managers who participate with at least one fund and 46 of PERE 100: institutional capital’s top manager picks.
The listed dataset covers 272 (against 240 in 2019) publicly traded property companies and REITs globally, representing 61% coverage of the major developed listed real estate indices. Adding the GRESB Public Disclosure Dataset results in full coverage of the major listed real estate indices.
GRESBS’ Partners Directory is offering the possibility to connect any investors to a global network of sustainability consultants and solution providers who can assist to complete a GRESB Assessment, manage ESG data and advance performance.
Earlier this year the CMS, ranked as a Top 10 of Global Law Firm, based in 40+ countries and 70+ offices worldwide including in Monaco,became GRESB’s first law firm partner aiming at helping clients to navigate this rapidly evolving legal and regulatory landscape, with the support of a multi-disciplinary expertise in sectors linked to energetic transition such as energy & emissions, water, and waste.
Article: Joana Foglia – Source: GRESB