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2023

Infrastructure Fund

Scoring Document

Contents

Disclaimer: 2023 GRESB Infrastructure Assessments

This document was prepared in response to industry feedback and discloses the detailed scoring methodology for all indicators of the 2023 Infrastructure Fund Assessment. The Scoring Document is shared for information purposes in an effort to increase transparency around the Assessment, Methodology and Scoring processes. GRESB reserves the right to make edits to this document during the scoring and analysis period preceding the 2023 results launch.

Introduction

This document outlines the scoring methodology of the 2023 Infrastructure Fund Assessment. It is shared for information purposes, to provide transparency on the Assessment, Methodology and Scoring processes.

How to read this document

This document provides a breakdown of how each indicator is scored in the 2023 GRESB Infrastructure Fund Assessment. We recommend reading it in conjunction with the Reference Guide, which includes the reporting requirements and validation details for indicators.

Please note the following:

Scoring Methodology

Following data validation, scoring is completed by an automatic system.

GRESB Score

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

GRESB Score = Management Score + Performance Score

Management Score - Infrastructure Fund:

All participants that submit the Fund Assessment receive this score. The Component comprises 17 indicators and is scored out of 30.

Performance Score - Infrastructure Fund:

In order to receive a Performance Score - Infrastructure Fund, then at least 25% weight of underlying assets (based on equity invested), need to participate in the GRESB Asset Assessment. Once this threshold is met (and the assets have confirmed links and submitted assessments), then the entity receives a Performance Score - Infrastructure Fund. This score is a weighted average of the GRESB Score - Infrastructure Asset of all assets listed in the Summary of Entity Assets indicator (RC6), and is scored out of 70. If less than 25% of assets participate in the GRESB Asset Assessment, the fund will only receive a Management Score - Infrastructure Fund. Non-reporting assets, or assets without a 'Confirmed’ connection status, will receive a GRESB Score - Infrastructure Asset of zero for the purposes of calculating the Performance Score - Infrastructure Fund. 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. Funds are entitled to exclude specific assets from contributing to the Performance Score - Infrastructure Fund if there is a valid reason (e.g. greenfield asset, operational - less than six months, recently purchased - purchased and owned for less than six months, or recently sold - sold prior to July 1st, 2023.

GRESB Rating

The GRESB Rating is an overall relative measure of ESG management and performance of the asset. The calculation of the GRESB Rating is based on the GRESB Score and its quintile position relative to the GRESB universe, with annual calibration of the model. If the participant is placed in the top quintile, it will have a GRESB 5‑star rating; if it ranks in the bottom quintile, it will have a GRESB 1‑star rating, etc.

Scoring Weightings:

The Management component is made up of 6 Aspects and 23 indicators with the exclusion of Entity & Reporting Characteristics. The below weights apply for 2023

Indicator Scoring:

There are five scoring models used within indicators:

The overall outcome of these models is to generate a fractional score (i.e. between zero and one) which is then multiplied by the indicator weighting (maximum score) to generate the score for the indicator.

Section One (Elements)

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

Aggregated scoring: For indicators where one or more answers can be selected, fractional scores are awarded cumulatively for each individual selected answer and then aggregated to calculate a final fractional score for the section. In some cases, each checkbox answer may be equally weighted and in others, each checkbox answer may be assigned a higher or lower fractional score each, to reflect best practice responses. For many indicators, the final fractional 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: The idea behind this concept is that the fractional score achieved for each additional data point provided decreases as the number of provided data points increases. This means that the fractional score achieved for the first data point will be higher than the fractional score 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 fractional score for the evidence section acts as a multiplier to the Section 1 fractional score. Mandatory evidence receives a multiplier of zero (0) for no evidence or not-accepted evidence, 0.5 for providing partially accepted evidence and 1 for providing fully accepted evidence. To clarify, the indicator will receive no points unless the hyperlink and/or uploaded document is considered valid (i.e. partially and/or fully accepted).

The final indicator score is then calculated as:

Indicator score = (Section 1 fractional score) X (Section 2 multiplier) X Indicator weighting

Example of indicator level scoring:

Example: LE5 indicator

1.65 points , G

This indicator is split into three sections represented by two fractions and an "x" in the far-left column. The first section addresses the predetermined financial consequences of performance targets and the employee group(s) to which they apply, and the second section covers the non-financial consequences.The final section allows for scoring of evidence. The far-left column tells us that the score for the indicator is calculated as follows; (where the section and evidence scores are all fractions between 0 and 1):

Indicator score = (Employee groups with financial consequences fractional score X 1) + (employee groups with non-financial consequences X 1/2) X evidence score X 1.65 points

If the respondent achieved the maximum fractional score for the second section, with partially accepted evidence (resulting in a multiplier of 0.5), the score would be:

(0 + 1/2) X 0.5 X 1.65 points = 0.41 points

If the respondent achieved maximum fractional score for the first section, with fully accepted evidence (resulting in a multiplier of 1), the score would be:

(1+0/2) X 1 X 1.65 points = 1.65 points

Leadership

This aspect consists of 5 indicators (22% of the Management Component - Infrastructure Fund)

Leadership

2022 Indicator

1.1 points , G

This indicator is scored as a two section indicator. Section 1 covers the checklist, i.e. the elements the entity has selected, and section 2 covers the evidence provided.

Section 1: Fractional points are awarded to each commitment and then aggregated to calculate the final fractional score. It is not necessary to select all checkboxes in order to obtain the maximum score for this indicator.

Section 2:‘Evidence’ is mandatory for this indicator. The validation status of the evidence (also see: ‘Validation’) affects the final score for the indicator through a multiplier, as below:

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

The aggregated score for the checkboxes selected in section 1 of the indicator will be multiplied by the evidence multiplier to give the final absolute score for the indicator.

Commitments obliging the entity to take action receive more points.

1.5 points , G

This indicator is scored as a two section indicator. Section 1 covers the checklist, i.e. the elements the entity has selected, and section 2 covers the evidence provided.

Section 1: Fractional points are awarded to each strategy type and then aggregated to calculate the final fractional score. It is not necessary to select all checkboxes in order to obtain the maximum score for this indicator. The objectives are not assigned equal weights, with non-publicly available objectives scoring lower.

Section 2:‘Evidence’ is mandatory for this indicator. The validation status of the evidence (also see: ‘Validation’) affects the final score for the indicator through a multiplier, as below:

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

The aggregated score for the checkboxes selected in section 1 of the indicator will be multiplied by the evidence multiplier to give the final absolute score for the indicator.

1.1 points , G

This indicator is scored as a one section indicator consisting of a checklist of elements. Evidence is not required.

Points are awarded based on the selected elements, with some options receiving more points. Selecting all checkboxes is not required in order to score maximum points.

The "climate-related risks and opportunities" elements of this indicator are not scored and are for reporting purposes only.

1.5 points , G

This indicator is scored as a one section indicator consisting of a checklist of elements. Evidence is not required.

Points are evenly divided between the selected elements. Any ‘other’ answer provided will be manually validated and must be accepted before achieving the respective fractional score. If you have multiple ‘other’ answers accepted, only one will be counted towards the score.

The "climate-related risks and opportunities" elements of this indicator are not scored and are for reporting purposes only.

1.5 points , G

This indicator is scored as a two section indicator. Section 1 covers the checklist, i.e. the elements the entity has selected, and section 2 covers the evidence provided.

Section 1:Fractional points are awarded based on the type of consequence and the selected employee group(s) and then aggregated to calculate the final fractional score. It is not necessary to select all checkboxes in order to obtain the maximum score for this indicator. The employee groups are not assigned equal weights. If an ‘other’ answer has been provided, this will be eligible for a fractional score (depending on validation status).

Section 2:‘‘Evidence’ is mandatory for this indicator. The validation status of the evidence (also see: ‘Validation’) affects the final score for the indicator through a multiplier, as below:

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

The aggregated score for the checkboxes selected in section 1 of the indicator will be multiplied by the evidence multiplier to give the final absolute score for the indicator.

Any ‘other’ answer provided will be manually validated and must be accepted before achieving the respective fractional score. If you have multiple ‘other’ answers accepted, only one will be counted towards the score.

Policies

This aspect consists of 3 indicators (10% of the Management Component - Infrastructure Fund)

Policies

2022 Indicator

1 point , E

This indicator consists of a question and an evidence upload. When selecting “Yes” evidence is mandatory, however it is not validated and is for reporting purposes only.

1 point , S

This indicator consists of a question and an evidence upload. When selecting “Yes” evidence is mandatory, however it is not validated and is for reporting purposes only.

1 point , G

This indicator consists of a question and an evidence upload. When selecting “Yes” evidence is mandatory, however it is not validated and is for reporting purposes only.

Targets

This Aspect consists of 1 indicator (0% of the Management Component - Infrastructure Fund)

Targets

2022 Indicator

1 point , E

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Reporting

This aspect consists of 3 indicators (15% of the Management Component - Infrastructure Fund)

Reporting

2022 Indicator

3 points , G

This indicator is scored as a two section indicator. Section 1 covers the checklist, i.e. the elements the entity has selected, and section 2 covers the evidence provided.

Section 1: For section 1 of the indicator, fractional points are awarded based on reporting level, alignment, and third party review. Disclosure methods are not equally scored. It is not necessary to select all reporting methods to receive maximum points. The obtained fractional points are aggregated to calculate the indicator’s final score.

If an ‘other’ answer is provided, this will first be manually validated (see paragraph ‘Validation’) and must be accepted before it will achieve the respective fractional score. If multiple ‘other’ answers are listed, more than one may be accepted in manual validation, but only one will be counted towards the score. Any accepted ‘other’ answers will be awarded fractional points.

Section 2: ‘Evidence’ is mandatory for this indicator. The validation status of the evidence (also see: ‘Validation’) affects the final score for the indicator through a multiplier, as below:

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

The aggregated score for the checkboxes selected in section 1 of the indicator will be multiplied by the evidence multiplier to give the final absolute score for the indicator.

1.5 points , G

This indicator is scored as a one section indicator consisting of a checklist of elements. Evidence is not required.

Fractional points are awarded based on the selection of the elements. This indicator applies a diminishing increase in score approach, which means that the fractional score achieved for the first data point will be higher than the fractional score achieved for the second, which again will be higher than for the third, and so on. Also see the GRESB 2023 Fund Assessment Scoring Document.

Any ‘other’ answer provided will be manually validated and must be accepted before achieving the respective fractional score. If multiple ‘other’ answers are listed, more than one may be accepted in manual validation, but only one will be counted towards the score.

Diminishing Increase in Score approach: This indicator is scored based on a Diminishing Increase in Score approach, per additional checkbox selected. In the scoring document this is represented by the blue line.

NB: The information in RP2.1 and RP2.2 may be used as criteria for the recognition of 2023 Sector Leaders.

Not scored , G

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

*The information in RP2.1 and RP2.2 may be used as criteria for the recognition of 2023 Sector Leaders.

Risk Management

This aspect consists of 7 indicators (39% of the Management Component - Infrastructure Fund)

Risk Management

2022 Indicator

4.9 points , G

This indicator is scored as a two section indicator. Section 1 covers the checklist, i.e. the elements the entity has selected, and section 2 covers the evidence provided.

Section 1:Fractional points are awarded based on the elements of the pre-investment process selected and then aggregated to calculate the final fractional score.

Section 2:‘‘Evidence’ is mandatory for this indicator. The validation status of the evidence (also see: ‘Validation’) affects the final score for the indicator through a multiplier, as below:

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

The aggregated score for the checkboxes selected in section 1 of the indicator will be multiplied by the evidence multiplier to give the final absolute score for the indicator.

Any ‘other’ answer provided will be manually validated and must be accepted before achieving the respective fractional score. If you have multiple ‘other’ answers accepted, only one will be counted towards the score.

4.9 points , G

This indicator is scored as a two section indicator consisting of a checklist of elements and open text boxes. Evidence is not required.

Section 1 The first section of this indicator is split into three subsections. Fractional points are awarded based on:

  • The number of checkboxes (elements of process) selected.
  • The open text box response and compliance described in the “validation” section above.
  • The number of stakeholder groups selected.

Section 2: Completing the open text boxes is mandatory for this indicator. The validation status of these affects the final score for the indicator through a multiplier, as below:

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

Diminishing Increase in Score approach: As indicated by the blue line, the stakeholder group elements of this indicator are scored based on a Diminishing Increase in Score approach, per additional checkbox selected.

Climate-related Risk Management

2022 Indicator

Not scored , G

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

0.5 points , G

Scoring for this indicator is based on the existence of a systematic process for identifying transition risks. It is not necessary to select all options to achieve the maximum score.

0.5 points , G

Scoring for this indicator is based on the existence of a systematic process for assessing the impact of transition risks. It is not necessary to select all options to achieve the maximum score.

0.5 points , G

Scoring for this indicator is based on the existence of a systematic process for identifying physical risks. It is not necessary to select all options to achieve the maximum score.

0.5 points , G

Scoring for this indicator is based on the existence of a systematic process for assessing the impact of physical climate risks. It is not necessary to select all options to achieve the maximum score.

Stakeholder Engagement

This aspect consists of 4 indicators (13% of the Management Component - Infrastructure Fund)

Stakeholder Engagement

2022 Indicator

1 point , S

This indicator is scored as a one section indicator consisting of a checklist of elements. Evidence is not required.

Fractional points are awarded based on the selection of the elements. Points are evenly divided between the selected elements. Not all checkboxes need to be selected to score maximum points.

Any ‘other’ answer provided will be manually validated and must be accepted before achieving the respective fractional score. If multiple ‘other’ answers are listed, more than one may be accepted in manual validation, but only one will be counted towards the score.

1 point , S

This indicator is scored as a one section indicator consisting of a checklist of elements. Evidence is not required.

Points are awarded based on (1) the type of training i.e 'professional' vs 'ESG-related' and (2) percentage of employees who received training. The training topics are not scored and are used for reporting purposes only.

1 point , S

This indicator is scored as a one section indicator consisting of a checklist of elements. Evidence is not required.

Points are awarded based on (1) selected answer options, (2) percentage of employees covered and (3) the survey's quantitative metrics. The survey response rate is not scored.

It is not necessary to select all answer options in order to obtain the maximum score for this indicator.

1 point , S

This indicator is scored as a one section indicator consisting of a checklist of elements. Evidence is not required.

Points are awarded for reporting on the gender ratio metrics for both 'governance bodies' and/or 'employees'.

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