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2019

Fund

Scoring Document

Contents

Disclaimer: 2019 GRESB Infrastructure Assessments

The information in this document has been provided in good faith and is provided on an “as is” basis. While we do not anticipate major changes, we reserve the right to make modifications prior to the official 2019 results launch on September 4. We will publicly announce any such modifications.

Introduction

This document outlines the scoring methodology of the 2019 Infrastructure Fund Assessment. It is shared for information purposes, to provide transparency on the Assessment, Methodology and Scoring processes.

How to read this document

The GRESB Infrastructure Fund Scoring Document provides a breakdown of each indicator score included in the 2019 GRESB Infrastructure Fund Assessment. We recommend reading this document in conjunction with the Reference Guide, which includes the reporting requirements of indicators.

Indicators in the GRESB Infrastructure Fund Scoring Document are presented in a consistent manner to reflect the 2019 GRESB Infrastructure Fund Reference Guide. Please note the following:

Example of indicator level scoring:

Example: Fund 3 indicator

8 points

This indicator is split into three sections represented by two fractions and an "x" in the far-left column. The first section addresses 'general ESG commitments', the second covers 'issue-specific commitments', the final section covers evidence. The far-left column tells us that the score of the indicator is calculated as follows; (where the section and evidence scores are all numbers between 0 and 1):

Indicator score = (General ESG commitments score * 6/10) + (Issue-specific ESG commitments score * 4/10) * evidence score * 8 points

If the respondent achieved maximum scores for both of the first and second sections, with partially accepted evidence (resulting in a multiplier of 0.5), the score is:
((1 * 6/10) + (1 * 4/10)) * 0.5 * 8 points = points

Scoring Methodology

Scoring Model

The sum of the scores for all indicators adds up to a maximum of 100 points, therefore the overall GRESB Fund Score is an absolute measure of ESG management and performance expressed as a percentage.

Fund Scoring

The GRESB Fund Score is based on a combination of the Fund Assessment Score and the Weighted Average Asset (WAA) Score.

Fund Score: All participants receive a Fund Score. The Fund Assessment contains 13 different ESG indicators which are weighted as follows:

Indicator Weight
(% Overall Score)
Fund 1 - Sustainable Investment Strategy 8.0%
Fund 2 - ESG Policies 8.0%
Fund 3 - ESG Commitments 8.0%
Fund 4 - Implementation Responsibility 5.0%
Fund 5 - Senior Decision Maker 5.0%
Fund 6 - ESG-related performance targets (NEW) 5.0%
Fund 7 - Gender & Diversity (NEW) 0.0%
Fund 8 - Assessment of ESG Risks & Opportunities 13.3%
Fund 9 - Monitoring of ESG Risks & Opportunities 13.3%
Fund 10 - Analysis of Asset Performance 13.3%
Fund 11 - ESG Disclosure 8.0%
Fund 12 - Third-party Review 5.0%
Fund 13 - ESG-related Misconduct, Penalties, Incidents 8.0%

Weighted Average Asset (WAA) Score:

In order to receive a GRESB Fund Score in the Fund Assessment, then at least 25% weight of underlying assets (based on AUM), need to participate in the 2019 GRESB Asset Assessment. Once this threshold is met (and the assets have confirmed links and submitted assessments), then the entity receives a Weighted Average Asset (WAA) Score. The WAA Score is a weighted average of the asset scores of all assets listed by the fund in the Summary of Entity Assets table in indicator A1 (the 'table'). Non-reporting assets, or assets without a 'Confirmed’ connection status, will receive an asset score of 0 for the purposes of calculating the WAA Score. The weights reported in the table should be equity based; so that the weight of an asset reported in the table, represents the equity invested in the asset divided by the total equity invested in all assets in the fund.

GRESB Fund Score:

The overall GRESB Fund Score is then calculated based on a 30% weighting from the Fund Score and 70% weighting from the WAA Score. This is calculated based on the following formula:

GRESB Fund Score = (0.3 X Fund Score) + (0.7 X WAA Score)

Additional information on fund scoring:

Indicator Scoring

There are three models used for indicator scoring:

Note that selection of the 'Yes/No'responses in relation to the indicator question, will no longer be scored in 2019

Section One (Elements)

Every scored indicator begins with this section which can receive a score between 0 and 1, determined by selections made in checkboxes and radio buttons, and answers provided in open text boxes. Based upon these inputs, scores are calculated using an aggregated points or a diminishing increase in scoring methodology.

Aggregated points: For indicators where one or more answers can be selected, points are awarded cumulatively for each individual selected answer and then aggregated to calculate a final score for the indicator. In some cases, each checkbox answer may be equally weighted and in others, each checkbox answer may be assigned a higher or lower amount of points each, to reflect best practice responses. For many indicators, the final score is capped at a maximum, which means that it is not necessary to select all checkbox answers in order to receive full points.

Diminishing increase in scoring: Under this methodology, the number of additional points achieved for each additional option selected decreases as the number of provided data points increases. This means that the number of points achieved for the first data point will be higher than the number of additional points achieved for the second, which again will be higher than for the third, and so on.

If an indicator is a One Section indicator, the score calculated in this section will also be its final score.

Section 2 (Evidence)

Some indicators include an evidence section to verify information provided in section 1 (Elements). In these cases, the score for the evidence section acts as a multiplier to the Section 1 score. Evidence can be optional or mandatory, and is scored as follows:

The total indicator score is then calculated as:

Indicator score = (Section 1 score) X (Section 2 score)

Fund Management & Investment Process

Policies & Objectives

2018 Indicator

8 points

Evidence: The evidence is validated and assigned a score which is used as a multiplying factor, according to the table below:

Validation status Score
Accepted 20/20
Partially accepted 13/20
Not accepted/not provided 6/20

The open text box, which describes the strategy and how it is being implemented, is for reporting purposes only and is not scored.

8 points

Evidence: The evidence is validated and assigned a score which is used as a multiplying factor, according to the table below:

Validation status Score
Accepted 2/2
Partially accepted 1/2
Not accepted/not provided 0

Evidence: The evidence is validated and assigned a score which is used as a multiplying factor, according to the table below:

Validation status Score
Accepted 20/20
Partially accepted 10/20
Not accepted/not provided 6/20

8 points

Other: 'Other' answer must be accepted during validation to achieve a score.

Evidence: The evidence is validated and assigned a score which is used as a multiplying factor, according to the table below:

Validation status Score
Accepted 20/20
Partially accepted 10/20
Not accepted/not provided 6/20

Leadership & Accountability

2018 Indicator

5 points

This indicator is scored as a One-Section indicator, as no evidence is required for this indicator.

5 points

This indicator is scored as a One-Section indicator, as no evidence is required for this indicator.

Other: 'Other' answer must be accepted during validation to achieve a score.

5 points

Other: 'Other' answer must be accepted during validation to achieve a score.

Evidence: The evidence is validated and assigned a score which is used as a multiplying factor, according to the table below:

Validation status Score
Accepted 20/20
Partially accepted 13/20
Not accepted/not provided 6/20

Not scored

This indicator is not scored and is for reporting purposes only.

Risks & Opportunities

2018 Indicator

13.333 points

Evidence: The evidence is validated and assigned a score which is used as a multiplying factor, according to the table below:

Validation status Score
Accepted 20/20
Partially accepted 13/20
Not accepted/not provided 6/20

13.333 points

Text Box: The text box is validated, and its validation status is determined based on the requirements of the indicators. Various validation status lead to different scores according to the table below:

Validation status Score
Full points 2/2
Partial points 1/2
No point 0

Evidence: The evidence is validated and assigned a score which is used as a multiplying factor, according to the table below:

Validation status Score
Accepted 20/20
Partially accepted 13/20
Not accepted/not provided 6/20

Diminishing Increase in Score approach: As indicated by the blue line, the subsection is scored based on a Diminishing Increase in Score approach, per additional checkbox selected.

13.333 points

Other: 'Other' answer must be accepted during validation to achieve a score.

Evidence: The evidence is validated and assigned a score which is used as a multiplying factor, according to the table below:

Validation status Score
Accepted 20/20
Partially accepted 13/20
Not accepted/not provided 6/20

ESG Disclosure

2018 Indicator

8 points

Each form of ESG disclosure method is assigned a maximum number of points, respectively achieved by:

  • The third-party alignment of the report (if applicable). The alignment standard and the corresponding evidence (which must be accepted during the validation process to receive a score).
  • The reporting level (three reporting levels - Entity, Investment manager or business unit, Group - are mutually exclusive).

Evidence: The evidence is validated and assigned a score which is used as a multiplying factor, according to the table below:

Validation status Score
Accepted 2/2
Partially accepted 1/2
Not accepted/not provided 0

Alignment: the alignment standard and the corresponding evidence must be accepted during the validation process to receive a score.

Other: 'Other' answer must be accepted during validation to achieve a score.

5 points

In order to achieve points for any of the checkboxes above, the number of points received in the corresponding section in Fund 9 must be higher than 0. Therefore, a participant cannot receive points for assurance of a disclosure type unless they received points for that same disclosure type in Fund 9 (i.e. checkbox must be selected and evidence fully accepted in validation).

Service Provider: A service provider has to be picked to achieve a score.

Other: 'Other' answer must be accepted during validation to achieve a score.

Scheme name: Scheme name must be accepted during the validation process to receive its associated score.

Evidence: The evidence is validated and assigned a score which is used as a multiplying factor, according to the table below:

Validation status Score
Accepted 2/2
Partially accepted 1/2
Not accepted/not provided 0/2

8 points

This indicator is scored as a One-Section indicator, as no evidence is required for this indicator.

The last open textbox addressing 'communication of misconduct, penalties, incidents or accidents', is not scored.

Diminishing Increase in Score approach: As indicated by the blue line, the subsection is scored based on a Diminishing Increase in Score approach, per additional checkbox selected.

Other: 'Other' answer must be accepted during validation to achieve a score.

Text Box: The text box is validated, and its validation status is determined based on the requirements of the indicators. Various validation status lead to different scores according to the table below:

Validation status Score
Full points 2/2
Partial points 1/2
No point 0

Summary of Entity Assets

233 points

Scoring

No points are awarded for completing the table.