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2019

Real Estate

Reference Guide

Contents

Disclaimer: 2019 GRESB Real Estate Assessment

The 2019 GRESB Real Estate Assessment Reference Guide (“Reference Guide”) accompanies the 2019 GRESB Real Estate Assessment and is published both as a standalone document and in the GRESB Portal alongside each Assessment indicator. The Reference Guide reflects the opinions of GRESB and not of our members. The information in the Reference Guide has been provided in good faith and is provided on an “as is” basis. We take reasonable care to check the accuracy and completeness of the Reference Guide prior to its publication. While we do not anticipate major changes, we reserve the right to make modifications to the Reference Guide. We will publicly announce any such modifications. The Reference Guide is not provided as the basis for any professional advice or for transactional use. GRESB and its advisors, consultants and sub-contractors shall not be responsible or liable for any advice given to third parties, any investment decisions or trading or any other actions taken by you or by third parties based on information contained in the Reference Guide. Except where stated otherwise, GRESB is the exclusive owner of all intellectual property rights in all the information contained in the Reference Guide.

Introduction

About GRESB

GRESB is the environmental, social and governance (ESG) benchmark for real assets. Working in collaboration with the industry, GRESB defines the global standard for sustainability performance in real assets providing standardized and validated ESG data to more than 75 institutional investors, representing over USD 18 trillion in institutional capital.

For more information, visit gresb.com. Follow @GRESB on Twitter.

Overview of GRESB Assessments

GRESB Real Estate Assessment

The GRESB Real Estate Assessment is the global standard for ESG benchmarking and reporting for listed property companies, private property funds, developers and investors that invest directly in real estate. The Assessment evaluates performance against 7 Sustainability Aspects, including information on performance indicators, such as energy, GHG emissions, water and waste. The methodology is consistent across different regions, investment vehicles and property types and aligns with international reporting frameworks, such as GRI and PRI.

The GRESB Real Estate Assessment provides investors with actionable information and tools to monitor and manage the ESG risks and opportunities of their investments, and to prepare for increasingly rigorous ESG obligations. Assessment participants receive comparative business intelligence on where they stand against their peers, a roadmap with the actions they can take to improve their ESG performance and a communication platform to engage with investors.

GRESB Developer Assessment

In addition to the GRESB Real Estate Assessment for property companies and fund managers that focus on themanagement of standing investments, GRESB provides a stand-alone GRESB Developer Assessment to evaluate the ESG performance of organizations that focus on development activities. The Developer Assessment focuses on policies, strategies, and measurable actions related to new construction and major renovation projects. It contains a subset of indicators from the GRESB Real Estate Assessment, plus the 14 indicators in the New Construction & Major Renovations (NC&MR) Aspect.

The GRESB Developer Assessment is designed for:

GRESB Public Disclosure

GRESB Public Disclosure evaluates the level of ESG disclosure by listed property companies and REITs. The evaluation is based on a set of indicators aligned with the GRESB Real Estate Assessment, allowing for a comparison of ESG disclosure performance between GRESB participants and non-participants. It also provides investors with a resource hub to access ESG disclosure documents across their full investment portfolio.

GRESB Public Disclosure data is initially collected by the GRESB team for selected companies, including both 2018 GRESB Real Estate Assessment participants and non-participants. All constituents have the opportunity to review and update this data before it becomes accessible to GRESB Investor Members. GRESB Public Disclosure consists of four Aspects: Governance of Sustainability, Implementation, Operational Performance and Stakeholder Engagement. Together, these Aspects contribute towards a Public Disclosure Level, expressed through an A to E sliding scale.

(Real Estate and Infrastructure) Supplement: Resilience

The GRESB Resilience Module is an optional supplement to the GRESB Real Estate and Infrastructure Assessments. It evaluates how real estate and infrastructure companies and funds are preparing for potentially disruptive events and changing conditions, assessing long-term trends, and becoming more resilient over time.

The Module is motivated by two key factors:

(Real Estate) Supplement: Nareit Leader in the Light

GRESB works in close collaboration with the National Association of Real Estate Investments Trusts (Nareit), a GRESB Industry Partner. Nareit encourages its corporate members to complete the annual GRESB Real Estate Assessments, which, for the past six years, has been the basis for their annual Leader in the Light Award competition. The Leader in the Light Awards are presented to REITs in eight property sectors: Diversified, Global (for non-U.S. companies), Health Care, Industrial, Lodging/Resorts, Office, Residential and Retail. If there are both large and small cap entries that meet the awards criteria in a given property sector, awards are presented to both the leading large and small cap companies. To participate in the Leader in the Light Award program, Nareit members must complete both the GRESB Real Estate Assessment and the Leader in the Light Supplement. Once all sections of the GRESB Real Estate Assessment are completed, including the Leader in the Light Supplement, participants are able to submit their entire submission which will automatically be included in the Leader in the Light Award competition.

GRESB Infrastructure Assessment

The GRESB Infrastructure Assessment provides the basis for the systematic assessment, objective scoring, and peer benchmarking of the ESG performance of infrastructure investments. The Assessment provides infrastructure investors with actionable information and the tools they need to accurately monitor and manage the sustainability risks of their assets, and to prepare for increasingly rigorous ESG obligations

The GRESB Infrastructure Assessment has an initial focus on operating investments, infrastructure assets, companies and funds and covers a variety of infrastructure sectors, including:

Assessment participants receive comparative business intelligence on where they stand against their peers, a roadmap with the actions they can take to improve their ESG performance and a communication platform to engage with investors.

The role of the GRESB benchmark

GRESB’s global benchmark uses a consistent methodology to compare performance across different regions, investment vehicles and property types. This consistency, combined with our broad market coverage, means our members and participants can apply a single, globally recognized ESG framework to all their real estate investments.

The GRESB Real Estate Assessment is structured around seven aspects and contains approximately 55 indicators. The indicators follow a plan-do-check-act logic and are designed to encompass the wide variety of property companies and funds included in the benchmark.

GRESB results provide a practical way to understand ESG performance and communicate that performance to investors and other stakeholders. GRESB provides overall scores of ESG performance - such as the GRESB Score and GRESB Ratings - as well as detailed aspect-level and individual indicator-level assessments of performance. The key to analyzing GRESB data is in peer group comparisons that take into account country, regional, sectoral and investment type variations. This richer analysis enables fund managers and companies to understand their results in the context of their investment strategies and communicate this to their investors.

GRESB is committed to facilitating the use of its ESG metrics in investment decision-making processes and encouraging an active dialogue between investors, fund managers and companies on ESG issues. GRESB updates its Investor Member Guidance on an annual basis to assist GRESB Investor Members in their engagement with managers.

2019 Participation Fee

Participants can choose to submit the Assessment as a non-member and pay a nominal participation fee or submit the Assessment as a GRESB Member. Participation is free of charge for first-time participants and for companies and funds headquartered in non-OECD countries. GRESB Members, in addition to the benefits received by participants, have access to more advanced analytical tools and services as well as preferential marketing, industry recognition, and networking opportunities.

Additional information about the 2019 participation fee is available here.

Timeline and Process

The GRESB Real Estate Assessment opens in the Assessment Portal on April 1, 2019. The submission deadline is July 1, 2019, providing participants with a three-month window to complete the Assessment. This is a fixed deadline, and GRESB will not accept submissions received after this date.

The GRESB validation process starts on June 15 and continues until July 31, 2019. We may need to contact you during this time to clarify any issues with your response.

Results are published in September and are distributed as follows:

For an overview of key dates and activities for the 2019 Assessment cycle, please see the Assessment timeline.

Response Check

A Response Check is a high-level check of the Assessment response prior to final submission. It helps to reduce errors that may adversely impact the Assessment results and ensures the submission is as complete as possible.

The Response Check is available for request from April 1 to June 1, 2019 (midnight, Pacific time) subject to available resources. We strongly encourage participants to place their request as early as possible.

Fund Manager and Company Members are able to request a complimentary Response Check for one entity as a membership benefits.

Guidance & Support

The Assessment Portal includes indicator-specific guidance, available under the “Guidance” tab that explains:

In addition to the guidance in the Portal, each Assessment is accompanied by a Reference Guide. The Reference Guide provides introductory information on the Assessments and a report-format version of the indicator-by-indicator guidance that is available under the Guidance tab in the Portal. The Reference Guide will be available on March 1, 2019.

The GRESB Assessment Portal has the following tools and functionality to help ensure an efficient and accurate submission:

GRESB works with a select group of Partners who can help participants with their Assessment submission. To learn more about the services offered by GRESB Partners, take a look at our Partner Directory.

Participants are able to contact the GRESB Helpdesk at any time for support and guidance.

GRESB Assessment Training Program

GRESB Real Estate Assessment Training is designed to help participants, potential participants and other GRESB stakeholders (managers, consultants, data partners) improve their ESG reporting through the GRESB Real Estate Assessment.

The training is divided into two sessions – Introductory and Advanced – to reflect the level of experience with GRESB.

Both programs are delivered via face-to-face group sessions, in select locations across all regions with GRESB participation, including Europe, North America and Asia Pacific. See dates and locations for 2019 GRESB Assessment Training.

About the 2019 GRESB Real Estate Reference Guide

This Guide accompanies the 2019 GRESB Real Estate Assessment (referred to as “the Assessment”). Guidance is included for all Assessment indicators that comprise GRESB Real Estate’s seven aspects, plus the Assessment indicators addressing New Construction & Major Renovations. This Guide provides:

This Guide should provide all the basic information needed to complete the 2019 Assessment. If you need additional help, please contact the GRESB Helpdesk at any time for support and guidance.

Who can see my data?

Data is submitted to GRESB through a secure online platform and can only be seen by current GRESB Staff or authorized personnel from GRESB’s parent company, i.e, GBCI, Inc. (“GBCI”). GRESB benchmark scores are not made public. Data collected through the GRESB Real Estate Assessment is only disclosed to the participants themselves and:

No other third parties will see the data. GRESB Investor Members must request access to a participants' Benchmark results and scores, allowing the participant the control to either accept or deny this request.

Documentation provided as evidence can be made available to GRESB Real Estate Investor Members on a document by document basis. Each uploaded document has a checkbox (with the default set to ‘not available’) which, when selected by the participant, makes this evidence available to all investors with access to that entity. It is not possible to choose a subset of investors which you would like to share the documents for.

GRESB has developed a number of tools to assist participants with the collection and aggregation of asset level data that is required to complete certain aspects of the Assessment. Property companies and funds are encouraged to use the asset level tools to streamline data flows, and to increase data quality. The asset level data provided to GRESB is strictly confidential and will only be used for aggregation to portfolio level. No individual asset level information will be disclosed to participants’ investors.

As a default, GRESB does not disclose a participant’s data to other participants. For listed entities, the entity name is disclosed in the Benchmark Report, as well as the entity names of listed peer group constituents. For non-listed entities, only the fund manager’s name is disclosed, as well as the fund manager’s name of private peer group constituents.

GRESB provides an opt-in option that will disclose the entity’s name (public) or fund manager’s name (private), as well as the scores for the two dimensions (Management & Policy and Implementation & Measurement), to participants in the peer group that also opted to disclose their name and dimension scores.

Grace Period

GRESB offers participants reporting for the first time the option to not disclose their first-year Assessment results to their investors. This "Grace Period" allows companies and funds a year to familiarize themselves with the GRESB reporting and assessment process without externally disclosing their results to GRESB Investor Members.

While Grace Period participant names are disclosed to GRESB Investor Members, Investor Members are not able to request access to Grace Period participant results

The participation fee is waived for Grace Period participants reporting to GRESB for the first time. Participants will receive a GRESB Scorecard and have the opportunity to purchase a Benchmark Report for a more in-depth analysis of sustainability performance and a detailed indicator-level comparison with peers.

First-time participants wishing to opt for the Grace Period can select the option from the settings section in the Assessment Portal.

Participant tools

The following tools help participants with the submission process:

In 2019, you can use the online GRESB Asset Portal or a data partner system to upload asset level data for the following indicators:

Who can see my asset level data?

The asset level data provided to GRESB is strictly confidential and will only be used for aggregation to portfolio level. No individual asset level information will be disclosed to participants’ investors.

Why does GRESB ask for asset level data?

The main driver for asset level reporting is to improve investor confidence in data quality. In addition, it enables us to provide participants with additional insights into the impact of their ESG programs, the basis for and paves the way for more tailored assessments in the future. GRESB data quality page

Does GRESB fully comply with GDPR?

We do. You can check the GRESB Privacy Statement here. We also have specific internal policies, such as our Data Breach Policy and our Data Protection Policy, related to GDPR that we cannot share externally for security reasons. Please note that asset level data does not fall under the incidence of GDPR because it does not contain any personal data.

Cybersecurity. What steps have GRESB taken to prevent unauthorized access to asset level data?

We hired an expert to review all of our data security measures and systems. No issues were flagged. Our website, as well as the GRESB Portal are fully HTTPS/TLS encrypted. We have strict and extensive policies on data security that we cannot share externally for security reasons. Our public policies can be accessed here.

GRESB Real Estate Assessment and Reference Guide Structure

Allocation to E, S, G

Each indicator is allocated to one of the three sustainability dimensions (E- environmental; S- social; G- governance):

Assessment indicator structure

Every indicator in the 2019 Assessment can be answered with ‘Yes’ or ‘No’ and in some cases with ‘Not applicable’. If ‘Yes’ is selected, the participant has the option to further classify the response by selecting one or more sub-options.

Participants should select all sub-options that accurately describe the entity and for which the entity can provide evidence. If ‘No’ or ‘Not applicable’ is selected, the participant may not select any additional sub-options. A 'Not Applicable' answer is interpreted and scored in the same way as a “No” and will yield 0 points. GRESB has marked each indicator to reflect whether it has been amended or is new, by providing the indicator number in orange.

Evidence

Selected indicators in the Assessment require supporting evidence. Evidence is information that can be used to validate the overall answer to the indicator and support any additionally selected criteria. GRESB does not have a prescriptive standard for evidence, rather the expectation is that a validator with reasonable domain expertise can review the evidence and find support for the overall indicator response and selected answer options. This means that the uploaded evidence should clearly reference the answer options selected by the participant. The evidence should not require extensive interpretation or inference, and participants are strongly encouraged to provide the simplest evidence that supports their claim.

It is the responsibility of the reporting entity to provide clear and concise information that can be easily found and understood by the validator. The validator will reject claimed answers or selected answer options not supported by clear evidence.

Hyperlink

If a hyperlink (or deep link) is provided, ensure that the relevant page can be accessed within two steps. Ideally, the landing page should contain all the information needed to validate the answer. In order to qualify as valid supporting evidence, the evidence provided must demonstrate the existence of the relevant topic relating to each of the criteria selected. The participant has the obligation to ensure that the hyperlink is functioning. Broken links are the responsibility of the participant and will be interpreted as the absence of evidence. Hyperlinks can only be provided if indicated. In all other instances, the actual document should be uploaded, or the document name and publication date should be provided. Hyperlinks in uploaded documents will not be checked.

Languages

Your Assessment response must be submitted in English. Documents uploaded as supporting evidence do not need to be entirely translated. However, a thorough summary of the content, sufficient to convey that each requirement has been met, should be provided in English.

GRESB intends to translate the 2019 GRESB Real Estate Assessment in to Japanese.

For other languages, the GRESB assessment portal can be translated by using “Google translate” via the Google Chrome web browser. This applies to the assessment portal , guidance notes and online version of the reference guide.

How to use Google Translate

Turn translation on

You can control whether Chrome will offer to translate web pages.

Disclaimer

Please note that not all text may be translated accurately or be translated at all. GRESB is not responsible for incorrect or inaccurate translations. GRESB will not be held responsible for any damage or issues that may result from using Google Translate.

Open text boxes

Over the years, the number of scored open text boxes has been reduced in an effort to shift focus from management to implementation. GRESB distinguishes between open text boxes:

Each type of text box is clearly marked in the Assessment.

"Other" answer

Some indicators offer the opportunity to provide an alternative answer option (‘Other’). These other answers must stand outside of the options listed in the question. It is possible to add multiple other answers, however scores will not be aggregated. All answers are validated as part of the data validation process.

Indicator-specific guidance

The indicator-specific guidance contains:

Reporting period

Answers must refer to the reporting period identified in EC3 in the Real Estate Assessment. A response to an indicator must be true at the close of the reporting period; however, the response does not need to have been true for the entire reporting period. GRESB does not favour the use of calendar year over fiscal year or viceversa, as long as the chosen reporting period is used consistently throughout the Assessment.

Reporting level

Assessment questions are asked at three levels. When a participating entity is part of a larger investment management organization or group of companies (the ‘Organization’), GRESB directs some indicators to be answered either:

Organization Level: These indicators do not need to relate specifically to the entity for which you are submitting an Assessment response. Instead, if the entity is part of an investment management organization or group of companies, your response may relate to the Organization.

Organization Level applicable to Entity Level: These indicators require you to respond at entity level but, if the entity is part of a larger organization (as defined above), your response may relate to organization level activities. However, in these circumstances, the organization level activities must apply to the entity.

Entity Level: These indicators ask for the highest level of detail in your response. Your response should relate specifically to the named entity for which you are submitting an Assessment response.

Each indicator specifies at which level you should respond. As part of the validation process, GRESB may seek confirmation that a question has been answered at the correct reporting level. Where a participating entity is not part of a larger organization, all Assessment responses should be answered at the entity level.

Service provider (Organization name)

This information is used in the data validation process. State the full name of the organization(s). As part of our annual validation of service providers, we may ask you to provide additional information via the GRESB Portal.

Scoring Methodolody

The GRESB Real Estate Assessment is structured into seven sustainability aspects, with a separate aspect for New Construction & Major Renovations. The weighted combination of scores for each aspect generates the overall GRESB Score. This Reference Guide provides detailed insight into the points available for each indicator, and the weighting of Assessment aspects. The information in this section provides additional context. Points per indicator are decided by GRESB in advance of the Assessment opening for responses. Indicator scoring goes through a three-stage review process based on GRESB’s rules, principles and guidelines.

Points per indicator

For indicators where you can select one or more answers, GRESB awards points cumulatively for each individual selected answer and then aggregates to calculate a final score for the indicator. For many indicators, this final score is capped at a maximum, which means that it is not necessary to select all answers in order to receive full points. This scoring mechanisms allows the diversity among property companies and funds and the variety of their sustainability-oriented activities to be reflected. Open text boxes (where participants answer through a descriptive text), and indicators for which participants select ‘other’ answers, are manually validated. Points are awarded based on the validity of the response.

Scoring model

The scoring model is based on an automated system, which uses a technology platform designed for GRESB by a third party that specializes in data analysis software development. The scoring is completed without manual intervention after data validation has been completed.

The sum of the scores for each indicator adds up to a maximum of 139 points, and the overall GRESB Score is then expressed as a percentage – from 0 to 100. The maximum score for each aspect is a weighted element of the overall GRESB Score. GRESB takes into account the unique characteristics of different property types, not only in benchmarking absolute scores, but also in the scoring of a selection of indicators. A selection of indicators is scored based on each portfolio’s main property types – this holds specifically for the Performance Indicators and Building Certifications indicators.

The overall GRESB Score is divided into two dimensions: Management & Policy (MP) and Implementation & Measurement (IM).

Sustainability Aspect Weight (% Overall Score)
Management 7.9%
Policy & Disclosure 9.4%
Risks & Opportunities 12.9%
Monitoring & EMS 8.6%
Performance Indicators 25.2%
Building Certifications 10.8%
Stakeholder Engagement 25.2%
New Construction & Major Renovations Scored individually
Resilience Module Scored individually

Management & Policy is defined as “the means by which a company or fund deals with or controls its portfolio and its stakeholders and/or a course or principle of action adopted by the company or fund.” The maximum score for Management & Policy is 36.25 points – this is 26.1 percent of the overall GRESB Score and is expressed as a percentage.

Implementation & Measurement is defined as “the process of executing a decision or plan or of putting a decision or plan into effect and/or the action of measuring something related to the portfolio.” The maximum score for Implementation & Measurement is 102.75 points – this is 73.9 percent of the overall GRESB Score and is expressed as a percentage.

Participants reporting on new construction and major renovation projects complete the additional New Construction & Major Renovations (NC&MR) aspect, which receives a separate aspect score that is not included in the overall GRESB Score. Companies and funds that focus on development activities rather than the management of standing investments must complete the separate GRESB Developer Assessment and will receive a separate Developer Score.

Other information

In response to industry feedback, GRESB has compiled a Scoring Document outlining the scoring methodology in detail as applied to each indicator in the 2019 Real Estate Assessment. The 2019 Scoring Document is available to participants via the Assessment Portal on April 1, 2019 and 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 2019 results launch.

GRESB Rating

The GRESB Rating is an overall measure of how well ESG issues are integrated into the management and practices of companies and funds. The rating is based on the GRESB Score and its quintile position relative to the GRESB universe, with annual calibration of the model. It is calculated relative to the global performance of all reporting entities - property type and geography are not taken into account. In this way the GRESB Rating provides investors with insight into the differentiation of overall ESG performance within the global property sector. If certain regions systematically perform better, they will on average have higher-rated companies and funds. If the entity is placed in the top quintile, it will have a GRESB 5-star rating; if it is in the bottom quintile, it will have a GRESB 1-star rating, etc.

Entities with a score higher than 50 for both the Implementation & Measurement and Management & Policy dimensions receive the Green Star designation, highlighted through a distinctive markup in the Scorecard and Benchmark Reports.

Entity categorization

A pre-set threshold determines an entity’s geographic location and property type:

The four-tier systems works as follows:

Peer group allocation

Each participant is assigned to a peer group, based on the entity’s legal structure (public/private), property type and geographical location. To ensure participant anonymity, GRESB will only create a peer group if there is a minimum of six peers in the group.

Peer group assignments do not affect a company/fund’s score, but determine how GRESB places an Assessment participant’s results into context.

The goal of the peer group creation process is to compare participants who share as many characteristics as possible, while:

Each participant can be part of multiple peer groups, but can only have one active peer group. The active peer group is the one which is used for benchmarking and is displayed in the participant’s Benchmark Report. This means that participant A can be in the active peer group of participant B, without participant B being in the active peer group of participant A. The practical consequence of this is that A will be displayed in the Benchmark Report of B under “Peer Group Constituents”, while B will not be displayed in the Benchmark Report of A.

The peer group composition is determined by a simple set of quantitative rules and provides consistent treatment for all participants.

GRESB creates peer groups by filtering participants on all relevant characteristics. If the peer group is too small or has too many participants with the same fund manager, we eliminate filters until we have a valid peer group. There are two ways in which the filter can be widened:

The system attempts to find the best peer group based on the criteria presented above. This process repeats in a loop following the logic described in the table available in

The system attempts to find the best peer group based on the criteria presented above. This process repeats in a loop following the logic described in the table available in Appendix: 9 Peer Group Allocation Methodology

Customized Benchmark Reports

Participants who would like to be compared against a different peer group than the one assigned by GRESB can request a Customized Benchmark Report (click here for details). The GRESB Customized Benchmark Report provides advanced analytics through alternative indicator-level performance comparisons and rankings based on a self-selected peer group. It builds on the detailed insights you can draw from the standard Benchmark Report and adds additional flexibility to understand your relative performance in the market.

Peer group disclosure

For public companies, the entity name of the peer group constituents is disclosed in the Benchmark Report. For private entities, only the fund manager’s name of the peer group constituents is disclosed. GRESB provides an opt-in option that discloses the entity’s name (listed) or fund manager’s name (private), as well as the scores for the two dimensions (Management & Policy and Implementation & Measurement). However, this is only disclosed to participants in the peer group who also opted to disclose their name and dimension scores.

Customized Benchmark Reports

Participants who would like to be compared against a different peer group than the one assigned by GRESB can request a Customized Benchmark Report (click here for details). The GRESB Customized Benchmark Report provides advanced analytics through alternative indicator-level performance comparisons and rankings based on a self-selected peer group. It builds on the detailed insights you can draw from the standard Benchmark Report and adds additional flexibility to understand your relative performance in the market.

2019 GRESB Data Validation Process

Data validation is an important part of GRESB’s annual benchmarking process. The purpose of data validation is to encourage best practices in data collection and reporting. It provides the basis for GRESB’s continued efforts to provide investment grade data to its investor members. Following receipt of Assessment submissions, prior to analyzing the data, GRESB validates the input data. This process continues from June 15 until July 31, 2019.

GRESB operates a three-tier validation process (All Participant Check, Validation Plus, Validation Interview). Over the past years, the topics covered by the validation process and the scope of work for Validation Plus and Validation Interviews have increased significantly.The validation process is completely outsourced to GRESB’s parent company GBCI.

What data does GRESB Validate?

GRESB validation is a check on (a) the factual accuracy and (b) the logic (e.g. clear, sound reasoning) of GRESB Assessment submissions including:

GRESB checks:

  1. The existence and content of answers to open text boxes;
  2. The additional information provided to Assessment Indicators, e.g. third-party organization names, assurance, audit, certification and verification standards and ‘other’ answers;
  3. Uploaded documents, and/or on provided document name and date of publication.
  4. Automated outlier and consistency checks of performance data (energy and water consumption, GHG emissions and waste).

Document uploads are validated based on the validity of the document relative to the requirements stated in the guidance for the indicator, including the actual reference to selected answer options (see “Evidence”). Uploaded evidence that was accepted in previous Assessment submissions might not be accepted in subsequent submissions. Enhanced validation checks and/or a change in the level of validation may result in different validation outcomes. In order to be accepted, the provided evidence should meet the requirements as stipulated in this Reference Guide.

All Participant Checks

Validation Plus

The 2019 list of indicators selected for Validation Plus is:

MA5ESG factors included in performance targets
PD1Policy on environmental issues
PD5.1Disclosure of ESG performance
RO3.1Due diligence on new acquisitions
SE4.1ESG specific requirements in the procurement process
NC1Sustainability strategy for new construction & major renovations
NC8Promotion of water conservation
NC14Monitoring impact on local community

The GRESB/GBCI validation team reviews the uploaded documents, they are not disclosed by GRESB to any third parties, unless the option to make the evidence available to investors was selected. You may redact the documents, provided that enough information to validate your Assessment responses is available. All supporting evidence for indicators selected for Validation Plus must be submitted alongside the Real Estate Assessments. Documents, clarifications and information provided after submission will not be taken into consideration.

Validation Interviews

Validation Interviews participants are automatically selected using a system that analyzes criteria based on the previous year’s Assessment data. Participants selected will be notified by email after the Assessment submission. In 2019, GRESB anticipates that approximately five percent of participants will be selected for a Validation Interview.

Quantitative Data Quality Control

Based on statistical modelling, GRESB identifies outliers in all reported quantitative data. This analysis is performed to ensure that all participating entities included in the benchmarking and scoring process are compared based on a fair, quality-controlled dataset.

Indentification of outliers

GRESB identifies reported consumption values as outliers, if the corresponding consumption intensity (consumption/area) and/or its change over time is abnormal relative to all reported data for the particular property type. Through an in-house developed statistical program, GRESB groups and benchmarks values within their property type, which allows for the identification of consumption values that fall outside normally observed ranges. Beyond reviewing the intensity of consumption, the like-for-like development of consumption over a two-year period is also used to identify abnormal data points.

Once the overall portfolio consumption and/or its consumption change over time are identified as abnormal, all underlying data points are reviewed by a member of the validation team. All GRESB participants undergo the same data review and all decisions are automatically protocolled by the system so that they can always be reviewed.

Elimination of outliers

GRESB acknowledges that some identified abnormal data points are not the result of incorrect data, but rather the result of unusual business development. To account for this explanation, outliers are not removed if a reasonable explanation by the respondent exists. Once participants enter unusual data points, the GRESB Portal requires a written explanation for those reported values. GRESB reviews all explanations for outliers and considers those before making a final decision on removing the outlier from the dataset. If a data point is identified as outlier and no reasonable explanation is provided, the data point is removed from the participant’s assessment response, both for scoring and reporting purposes. The outcomes of the outlier validation process are presented in the Benchmark Report and are not communicated to participants during the validation process. Please check Appendix 7c: Outlier validation for more information

Validation issues: queries and disputes

Participants with questions on individual validation decisions can contact the GRESB Helpdesk. For a complete interpretation of the validation decisions in the Assessment, participants can request a Results Review. For more information about the Results Review, please click here.

Each validation inquiry sent via the GRESB Helpdesk is evaluated internally and can be the result of:

Reporting Scope and Boundaries

GRESB requires property companies and funds to report on their whole portfolio, including both managed and indirectly managed assets.

The Annual GRESB Assessment includes all assets that are held during the reporting period, including those that have been sold or purchased. For these assets, ESG data is reported for the period of time that the assets were part of the portfolio. This enables us to deliver the standardized and comparable assessment of portfolio-level ESG performance that the market is seeking. However it is also worth noting that in addition to simple overall scores of ESG performance - such as the GRESB Score and GRESB Ratings - we provide detailed aspect-level and individual indicator-level assessments of performance. This richer analysis, further complimented by peer group benchmarking, enables managers to understand their results in the context of their investment strategies and communicate this to their investors.

Joint ventures

When an asset or assets are part of a joint venture, joint operation or are in joint ownership, participants are required to report on these assets, even if the joint arrangement means that the participant does not have direct operational control over the asset(s). Joint venture partners with a stake of 25 percent or higher are considered to have significant influence over operational initiatives and can therefore drive implementation of sustainability initiatives and performance improvements, even in the case the operational control resides with another partner. If the equity share in a joint venture, joint operation or joint ownership is more than, or equal to 25 percent, participants can choose to either (a) report on their share or (b) report on the full asset. This must be done consistently throughout the portfolio and is regardless of operational or management control. This may result in an asset being included in two separate submissions. However, this does not impact GRESB’s analysis or the benchmark results. If the equity share in a joint venture, joint operation or joint ownership is less than 25 percent, participants can exclude the asset(s) from the reporting boundaries. In either case, participants must explain their approach in the open text box in RC5.1.

If an asset is part of multiple portfolios managed by the same fund manager, the asset should be treated as a joint venture in each portfolio. The rules outlined above apply.

Managed/Indirectly Managed

The definition of Indirectly Managed assets in the Assessment is solely based on the landlord/tenant relationship.

Managed assets or buildings are those for which the landlord is determined to have “operational control” where operational control is defined as having the ability to introduce and implement operating policies, health and safety policies, and/or environmental policies. If both the landlord and tenant have the authority to introduce and implement any or all of the policies mentioned above, the asset or building should be reported as a Managed asset. Where a single tenant has the greatest authority to introduce and implement operating policies and environmental policies, the tenant should be assumed to have operational control. For example, in the case of a full repairing and insuring (FRI) lease in England and Wales, the tenant has operational control meaning that the asset is Indirectly Managed.

GRESB distinguishes between Managed assets and Indirectly Managed assets in the Performance Indicators aspect. GRESB has done so in recognition of the fact that landlords of Indirectly Managed assets may have little or no control over the use or purchase of utilities for the asset, or over waste management practices. The guidance for this aspect explains GRESB’s approach in more detail.

GRESB does not specifically distinguish between Managed and Indirectly Managed assets outside the Performance Indicator aspect. The Assessment measures ESG performance using a consistent methodology that applies both to listed companies and private funds and which applies across property sectors and regions. GRESB encourages the collection of data and qualitative information regarding ESG issues that give property companies and funds and their investors the tools to identify areas in which they can improve performance and as a toolkit for internal and external engagement.

Furthermore, while GRESB does measure absolute performance, it emphasizes the importance of peer group comparisons in scoring and the analysis of benchmark results. Where participant numbers allow this, GRESB creates separate peer groups for each property type, for listed and private entities and for Managed and Indirectly Managed assets. Additionally, participants have the opportunity to explain the composition of their portfolio in the open text box in RC5.1, including clarifying limits on asset control that arise from the landlord/tenant relationship.

With these factors in mind, while the landlord’s day-to-day involvement in Indirectly Managed assets may be limited, the topics covered by the Assessment are equally relevant to Indirectly Managed assets. Accordingly, the same questions and methodology apply.

Entity & Reporting Characteristics

Information provided in the Entity and Reporting Characteristics section determines the reporting scope and boundaries for the submission of the GRESB Assessment response. This section identifies the entity's characteristics and uses the information for benchmark-based scoring. The profile of the reporting entity is also used for peer group selection, which is based on property type and geographic allocation, as well as the nature of ownership and management structure. The section consists of two parts:

Entity Characteristics

Intent

Identify the participating entity. The entity name will be used to identify the entity on the GRESB portal and will be displayed in the entity’s Benchmark Report.

Terminology

Entity name: Fund or company name of the investable entity for which the Assessment is submitted. In case of listed companies, the entity name is the legal name of the organization, also used for identification on international stock exchanges. In case of non-listed entities, the entity name identifies the investable portfolio for which the Assessment is submitted.

Entity manager (organization) name: Legal name of the organization that manages the entity (typically applicable for non-listed entities only).

Requirements

Complete all applicable fields.

Intent

Describe the ownership status and characteristics of the participating entity.

Terminology

Closed end fund: An investment vehicle with a fixed amount of capital. Limited liquidity, with the redemption of units provided for at the end of the life of the vehicle.

Core: An entity that includes a preponderance of core attributes; the entity as a whole will have low leasing exposure and low leverage. A low percentage of non-core assets is acceptable. As a result, such portfolios should achieve relatively high-income returns and exhibit relatively low volatility. Low-risk entities that invest in stabilized, income producing property, which is typically held for 5 to 10 years and have limited acquisition/disposal activity after the fund has been invested. Assets in core funds are characterized by stable income returns with less capital growth.

A Core Plus fund invests in similar style assets but adopts a more aggressive management style. Core Plus entities are considered Core for the purposes of the GRESB Assessment.

Finite structure: Refers to funds that have a specific termination date, otherwise known as the funds expiration or liquidation date.

First closing: A date specified by the manager on which the vehicle is launched, the initial capital subscription is completed and the commitment period commences.

Fund or vehicle: Terms used to describe a structure where at least three investors’ capital is pooled together and managed as a single entity with a common investment aim. For the purposes of these definitions, these terms can be used interchangeably.

Government entity: A real estate portfolio managed by a government agency (e.g. U.S. General Services Administration, GSA). Government portfolios are formed of publicly owned, publicly managed and publicly leased properties.

Infinite structure: Refers to funds with no specified or intended termination dates.

ISIN: International Securities Identification Number. ISINs are assigned to securities to facilitate unambiguous clearing and settlement procedures. They are composed of a 12-digit alphanumeric code and act to unify different ticker symbols, which can vary by exchange and currency for the same security. In the United States, ISINs are extended versions of 9-character CUSIP codes.

Listed entity: A company that is publicly listed and traded on a recognized stock exchange, such as Nasdaq or NYSE. Also known as "public entities”.

Non-listed entity: A company or fund that is not a listed or traded on any stock exchange. Also known as private entities or private portfolios.

Open end fund: An investment vehicle with a variable and unlimited amount of capital. Investors may purchase or redeem units or shares from the vehicle as outlined in contractual agreements.

Opportunistic: An entity of preponderantly non-core investments that is expected to derive most of its return from appreciation/ depreciation and/ or which is expected to and may exhibit significant volatility in returns. This volatility may be due to a variety of characteristics, such as exposure to development, significant leasing risk, high leverage, or a combination of moderate risk factors. High-risk entities that invest in greater yielding assets; for example, developments without pre-leasing, properties involving significant repositioning or that are distressed, and large portfolio acquisitions, purchased to be re-packaged and sold in smaller lot sizes. Opportunity funds generally maintain higher leverage limits and have shorter holding periods for assets.

REIT: A Real Estate Investment Trust is an investment vehicle for real estate that is comparable to a mutual fund. Listed REITs are traded on a stock exchange.

Value Added: An entity that generally includes a mix of core investments and non-core investments that will have less stable income streams. The entity as a whole is likely to have moderate lease exposure and moderate leverage. As a result, such entities should achieve a significant portion of the return from appreciation/ depreciation and are expected to exhibit moderate volatility.

Moderately higher-risk entities that typically engage in “forms of active management, such as tenant lease-up, repositioning or redevelopment, to generate returns through adding value to the investment properties”.

Year of commencement: The year in which the reporting entity began investing in the market. If a listed entity is delisted (i.e., taken private) but remains under the same management, the date of original commencement can be used for “date of first closing” for the new non-listed entity. If the entity is taken private by a new management company, the first day of closing should be the date of privatization. This information is not used for scoring and used for context only; portfolio vintage may affect the ability to implement ESG policies and strategies.

Requirements

Select one of the options, select all applicable sub-options and complete the year of first closing/commencement. Entities reporting to GRESB are expected to represent investable vehicles, and these entities are expected to include all direct real estate assets held by the vehicle (i.e., the whole portfolio).

If two or more listed companies merge into one entity during the reporting period, report on the structure, policies and procedures of the newly formed entity as of the end of the reporting period.

Note: GRESB Real Estate Investor Members that invest in listed real estate securities have access to the results of all listed entities that participate in the GRESB Real Estate and/or Developer Assessment. Publicly traded closed-end fund should be considered as non-listed entity given their level of disclosure requirements.

Reference

INREV Global Definitions Database, 2018

Intent

Set the entity’s annual reporting period.

Terminology

Calendar year: January 1 – December 31.

Fiscal year: The period used to calculate annual financial statements. Depending on the jurisdiction the fiscal year can start on April 1, July 1, October 1, etc.

Reporting period: Responses provided in the Assessment must refer to the reporting period identified in this indicator and should correspond to the most recently closed calendar year / fiscal year, as applicable. A response to an indicator must be true at the close of the reporting period; however, the response does not need to have been true for the entire reporting period. GRESB does not favour the use of calendar year over fiscal year or viceversa, as long as the chosen reporting period is used consistently throughout the Assessment.

Requirements

Select one of the options.

Intent

Establish whether there is a relationship with GRESB Partners (industry associations). Each entity on this list is a GRESB partner, receiving annual reports that show aggregate GRESB results for their membership. It is important for NAREIT members to select “NAREIT” for enrollment in the Leader in the Light Award Program (see Introduction for more information).

Terminology

See definitions in Appendix - Terminology Acronyms.

Requirements

Select one or more of the options. You can answer this indicator either at entity level or organization level.

Reporting Characteristics

Intent

Set the currency for which the entity’s real estate portfolio of assets is denominated.

Requirements

State the currency used by the entity for Assessment indicators that require a monetary value as a response.

Other: State the other currency form.

Intent

Gross asset value (“GAV”) is a metric used in GRESB data analysis to identify the size of the portfolio.

Terminology

GAV: Gross Asset Value.

Requirements

Complete the GAV field in millions (e.g., a GAV of $75,000,000 must be reported as 75). Do not include a currency, as this has been reported in indicator RC1 above, but make sure the currency applied for GAV reporting is consistent with indicator RC1.

The value provided should be the GAV of the real estate portfolio at the end of the reporting period, and should include New Construction and Major Renovation projects (if any).

As an alternative to GAV, you may report using the market value, the fair value or Net Asset Value (NAV) of the portfolio, at the end of the reporting period.

Intent

Metrics are needed to ensure comparability for benchmarking and reporting purposes. Set the reporting units used by the entity.

Requirements

Select one of the options, and use it consistently when reporting the floor area of the portfolio.

Intent

The entity’s primary business activity(ies) during the reporting period is used to determine which GRESB Aspect(s) should be completed.

Terminology

Developer Assessment: In addition to the GRESB Real Estate Assessment, GRESB offers a stand-alone GRESB Developer Assessment, for companies and fund managers that focus on development activities rather than the management of standing investments. The GRESB Developer Assessment evaluates the ESG performance of companies and funds, focusing on policies, strategies and measures related to new construction and major renovation projects.

Major Renovations: Alterations that affect more than 50 percent of the total building floor area or cause relocation of more than 50 percent of regular building occupants. Major renovation projects refer to buildings that were under construction at any time during the reporting period.

New Construction: Includes all activities to obtain or change building or land use permissions and financing. Includes construction work for the project with the intention of enhancing the property’s value. Development of new buildings and additions to existing buildings that affect usable space can be treated as new constructions and reported in RC-NC1. New construction projects refer to buildings that were under construction at any time during the reporting period.

Standing Investments: Real estate properties where construction work has been completed and which are owned for the purpose of leasing and producing rental income. The level of occupancy is not relevant for this definition. Also known as operating buildings.

Requirements

If you select:

  • Management of standing investments only – only complete Aspects 1-7 of the GRESB Real Estate Assessment. You will receive an overall GRESB Real Estate score.
  • Management of standing investments and development of new construction and major renovation projects – complete all indicators in Aspects 1-7 of the GRESB Assessment, as well as the New Construction and Major Renovations Aspect. You will receive two scores: a GRESB Real Estate Score and a separate New Construction and Major Renovations Score.
  • Development of new construction and major renovation projects – complete the GRESB Developer Assessment. You will receive a GRESB Developer Score.

Who should complete the GRESB Developer Assessment?

  • Organizations that develop properties, or acquire property development projects, with aim to sell the ownership stake upon the project’s completion. Projects may be developed to a tenant‘s specification (build to suit), commissioned by an investment manager, or developed at risk.
  • Organizations that acquire properties exclusively for redevelopment and resale.
  • Organizations that manage standing investments as a by-product of their development activities, and for whom the development activities are considered to be the core business.
Indicator aligned with PRI Reporting Framework 2018, Direct Property, OO PR 03: Largest property types

Intent

Portfolio composition information determines the structure of the Performance Indicators and Building Certification aspects, and forms the base for GRESB peer groups.

GRESB aims to benchmark participants against similar property types. If that is not possible, we will group property types defined in “Other” based on their property type characteristics.

Terminology

Data Centers: Property used for the purpose of data storage, processing and/or distribution. Examples may include, but are not limited to: telecommunications centers and data storage centers.

Hotel: Includes hotels, motels, youth hostels, lodging, and resorts.

Healthcare: Buildings used for the purpose of primary healthcare. Examples may include, but are not limited to: hospitals, clinics, physical therapy centers and mental health centers.

Industrial, Distribution warehouses: Industrial buildings used for the purpose of storing, processing and distribution of goods to wholesalers, retailers and/or consumers.

Industrial, Manufacturing: Industrial buildings used for the purpose of manufacturing. Otherwise known as a factory or manufacturing plant.

Industrial, Business parks: An industrial business park is an area zoned for the purpose of industrial development, where (light-weight) industrial buildings are grouped together with offices. Examples may include, but are not limited to: industrial estate, trading estate and enterprise zone.

Lodging, Leisure & Recreation: Indoor center used for the purpose of leisure and recreation. Examples may include, but are not limited to: exercise facilities, indoor sports courts, fitness studios, movie theaters, swimming centers and saunas/steam rooms.

Medical office: Examples may include, but are not limited to: offices specifically used for the purpose of medical administration, secondary research or other purposes, exclusive of the property types specified for Healthcare.

Office: Includes free-standing offices, office terraces, unattributed office buildings and office parks.

Operational control: The ability to introduce and implement operating and/or environmental policies and measures.

Other: State the other property type. Possible other answers may include, but are not limited to: kindergarten, community halls. Only use this option if your investments do not fit into any of the options given.

Parking (indoors): Enclosed, indoor vehicle parking facilities, usually consisting of numerous levels for which vehicles are intended to be parked. Otherwise known as multi-story car park, parking building, parking garage, stacked car parking and indoor parking.

Retail, High street: Retail buildings located on the high street in a particular area, usually terraced buildings located in the city centre or other high-traffic pedestrian zones.

Retail, Shopping centers: Enclosed centers for retail purposes. Examples may include, but are not limited to: regional malls and shopping malls.

Retail, Warehouse: Refers to buildings in an un-enclosed retail space, otherwise known as a strip center or strip mall, whereby buildings are usually stand-alone and situated side-by-side with their entrance facing a main street or carpark.

Residential, Multi-family: Refers to multiple residential dwelling spaces contained within one building, otherwise known as a multi-dwelling unit. This includes low-, mid- and high-rise apartment blocks.

Residential, Family homes: Includes both single-family homes and multi-dwelling units not including apartment blocks. A single-family home is a separate, free-standing residential building. A multi-dwelling family home includes those such as two-flats, duplex, semi-detached, and townhouses. Synonyms include: Single-family home, single-detached dwelling, detached house, single-family residence, separate house, free-standing house, townhouse, duplex, condo, semidetached, villa.

Residential, Student housing: Residential buildings used for the purpose of housing students, otherwise known as student apartments, student houses, student residence, student quarters, and student accommodation.

Self-storage: Indoor building or warehouse used for the purpose of self-storage for individuals and/or organizations, otherwise known as self-service storage.

Senior homes: Residential buildings used for the purpose of housing seniors, otherwise known as senior assisted living homes, retirement homes/apartments, retirement villages, old-age homes.

GRESB aims to benchmark participants against other similar property types. If that is not possible, we will group property types defined in “Other” based on their property type characteristics.

Requirements

Entities reporting to GRESB are expected to represent investable vehicles and must include all direct real estate assets held by the vehicle (i.e., the whole portfolio) at any time during the reporting period. If you have questions regarding the allocation of assets to a certain property type category, please contact GRESB using the “Ask GRESB” button next to indicator RC 5.1 in the Assessment Portal.

Please note that the fields in RC5.1 will be automatically overwritten once you upload the Performance Indicators asset level. We therefore recommend to prepare and upload the asset level information for the Performance Indicators section prior to filling in RC5.1

We therefore recommend to:

  • Prepare and upload your Asset-level Spreadsheet onto your Assessment prior to filling in RC5.1.
  • Complete the missing fields in RC5.1 (i.e. “Floor Area Type” and “% of GAV”)
  • Review all fields in RC5.1 to ensure it is accurate and complete

Floor area type: Select the type of floor area used across the portfolio. The floor area type selected will not influence the analysis, as long as it remains consistent throughout the entire Assessment. It is recommended to report on floor areas using the International Property Measurement Standard (IPMS). IPMS aims to establish a globally consistent methodology for property measurement.

It is mandatory to include the whole floor area for the entire portfolio of the investable entity, regardless of:

  • Restrictions on management control resulting from (a) the landlord and tenant relationship or (b) the ownership structure of the entity. For more information regarding managed/indirectly managed assets (landlord/ tenant relationship only) and reporting boundaries, see the Reporting scope and boundaries section below.
  • The period of time an asset was part of the portfolio during the reporting period. For assets purchased or sold during the reporting period, you must:
  1. Include these buildings in the overall reporting scope defined in RC5.1.
  2. Include these buildings in the calculations of Absolute Consumption for Performance Indicators (only include the consumption for the period of time the assets were part of the portfolio).
  3. Not include these buildings in Like-for-Like Consumption.

Management style (Managed and Indirectly Managed assets): The GRESB Real Estate Assessment seeks to benchmark portfolios against others with similar management styles. Classifying your properties and/or floor areas by their correct management style is a vital component of correct reporting. The two management styles used in the GRESB Real Estate Assessment are as follows:

  • Indirectly Managed: The definition is solely based on the landlord/tenant relationship and is relevant to asset-level data collection and aggregation. For Indirectly Managed assets or buildings, the single tenant is determined to have operational control. For example, in the case of a full repairing and insuring (FRI) lease, the tenant has operational control meaning that the asset is Indirectly Managed.
  • Managed: When both the landlord and tenant have the authority to introduce and implement any or all of the operating and/or environmental policies mentioned above, the property should be reported as a Managed Asset.

Percentage Indirectly Managed: Percentage calculated based on total floor area per property type. The numerator is the total floor area of Indirectly Managed assets per property type. The denominator is the total floor area per property type, not the total floor area of the whole portfolio (i.e., the purpose is to calculate the fraction of Indirectly Managed for each property type).

Percentage GAV: Report the portfolio’s property type diversification (if applicable), by fraction of total GAV or net operating income (NOI). The GAV value for this indicator should be calculated as the GAV of standing investments at the end of the reporting period plus GAV of standing investments sold during the reporting period. The sum of percentages must add up to 100 percent.

Number of assets: Report on the total number of assets for each property type. It is possible for the total number of assets reported in the table to exceed the actual number of assets, as mixed-use properties can be reported separately among property type components depending on data coverage (see Mixed-use assets).

Units: Starting 2018, reporting in units is no longer permitted (see 2018 Assessment development overviews in the Introduction section for more information). Instead, participants are required to provide the (lettable) floor area of the portfolio. If no actual floor area data is available, participants should use industry specific estimates and list the applied methodology in RC5.2.

Mixed-use assets/properties: For mixed-use assets that lack data availability by individual property type components, responses will depend on the structure and weightings of the asset. A choice for a single property type may only be made if one of the property type components accounts for more than 75% of the asset’s GAV.

For example, when the asset consists of:

  • 75% Office; 25% Retail — two options exist:
    • Report the asset as Office (and include the entire asset’s floor area)
    • Report the asset as Other: Mixed use (In RC5.1 and in Performance Indicators)
  • 60% Office; 40% Retail – one option exists:
    • Report the asset as Other: Mixed use (In RC5.1 and in Performance Indicators)

Joint ventures (“JVs”): When an asset is owned as part of a joint venture, joint operation, or is in joint ownership, participants are required to report on these assets, even if the joint arrangement means that the participant does not have direct operational control over the asset(s). Joint venture partners with a 25% or more stake in the asset are considered to have significant influence over operational initiatives, and can therefore drive implementation of sustainability initiatives and performance improvements, even if the operational control is with another partner.

  • If the equity share in a JV is more than, or equal 25%, participants may choose to either: (a) report the GAV equivalent of their share or (b) report on the full asset GAV. This must be done consistently throughout the portfolio and regardless of operational or management control.
  • If the equity share in a JV is less than 25%, participants can exclude the asset(s) from the reporting boundaries. In either case, participants must explain their approach in the open text box in RC5.2.
Note: Participants may choose to express the GAV size of the assets using the rules above, but they must always express the physical size of the asset using the entire floor area of the asset. If an asset is part of multiple portfolios managed by the same fund manager, the asset should be treated as a JV in each portfolio. The rules outlined above apply. Reporting JV assets may result in a property being included in two separate GRESB submissions (one from each partner). However, this does not impact GRESB’s analysis or the benchmark results.

References

EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017: 5.1, Organisational Boundaries; 5.2, Coverage; 5.7,Analysis-Segmental Analysis

Intent

The intent of this indicator is to ensure the portfolio represented in RC5.1 is complete and accurate. The information provided in RC5.1 determines the entity’s peer group composition. Please refer to Appendix 9 Peer Group Allocation Methodology for more information on the GRESB Peer Group Allocation.

Requirements

“Floor area”, “% of GAV”, and “Numbers of Assets” reported in RC5.1 must reflect the investable entity’s complete standing investments portfolio. This does not include cash investments, land or new construction and major renovation projects. Participants can still select “Yes” if these elements are excluded from the reporting scope represented in RC5.1

Evidence:

Document upload is mandatory for this indicator. The evidence should sufficiently support each of the values reported in RC5.1, except the last column "% Indirectly Managed Asset".

Evidence examples can include, but are not limited to:

  • Extracts or assets overviews used in entity reporting to investors;
  • Internal or external presentations confirming portfolio characteristics;
  • Audit statements confirming the stated reporting boundaries

Multiple documents can be uploaded.

The evidence must refer to the reporting entity and relate to the reporting period identified in EC3.

Open text box:

The content of this open text box is not used for scoring, but will be included in the Benchmark Report. Participate may use this open text box to communicate any relevant information necessary to understand how values from the uploaded supporting evidence reconcile to values reported in RC5.1 (except values from column “% Indirectly Managed Asset”). It is required to specify and clarify any inconsistencies with the reporting boundary requirements of GRESB as well as potential differences between uploaded documents and values reported to RC5.1.

Note on data confidentiality

GRESB is concerned with aggregated data that confirms the reporting boundaries provided in RC5.1. Sensitive data may be redacted. GRESB is committed to data security and to protecting and respecting data privacy, in accordance with the Portal Terms and Conditions.

References

EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017: 5.1, Organisational Boundaries; 5.2, Coverage; 5.7, Analysis-Segmental Analysis

Intent

Describe the location of the entity’s assets by country. GRESB uses the information to create country and regional peer groups.

Requirements

Select the countries in which the entity’s investments are located, using the fraction of total GAV or net operating income (NOI). Use the drop down menu.

References

EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017: 5.7, Analysis-Segmental-Analysis

New Construction & Major Renovations

Intent

Describe the entity’s new construction portfolio. This information determines the structure of important elements of the Assessment.

Terminology

Data Centers: Property used for the purpose of data storage, processing and/or distribution. Examples may include, but are not limited to: telecommunications centers and data storage centers.

Hotel: Includes hotels, motels, youth hostels, lodging, and resorts.

Healthcare: Buildings used for the purpose of primary healthcare. Examples may include, but are not limited to: hospitals, clinics, physical therapy centers and mental health centers.

Industrial, Distribution warehouses: Industrial buildings used for the purpose of storing, processing and distribution of goods to wholesalers, retailers and/or consumers.

Industrial, Manufacturing: Industrial buildings used for the purpose of manufacturing. Otherwise known as a factory or manufacturing plant.

Industrial, Business parks: An industrial business park is an area zoned for the purpose of industrial development, where (light-weight) industrial buildings are grouped together with offices. Examples may include, but are not limited to: industrial estate, trading estate and enterprise zone.

Lodging, Leisure & Recreation: Indoor center used for the purpose of leisure and recreation. Examples may include, but are not limited to: exercise facilities, indoor sports courts, fitness studios, movie theaters, swimming centers and saunas/steam rooms.

Medical office: Examples may include, but are not limited to: offices specifically used for the purpose of medical administration, secondary research or other purposes, exclusive of the property types specified for Healthcare.

New Construction: Includes all activities to obtain or change building or land use permissions and financing. Includes construction work for the project with the intention of enhancing the property’s value. Development of new buildings and additions to existing buildings that affect usable space can be treated as new constructions and reported in RC-NC1. New construction projects refer to buildings that were under construction at any time during the reporting period.

Office: Includes free-standing offices, office terraces, unattributed office buildings and office parks.

Operational control: The ability to introduce and implement operating and/or environmental policies and measures.

Other: State the other property type. Possible other answers may include, but are not limited to: kindergarten, community halls. Only use this option if your investments do not fit into any of the options given.

Parking (indoors): Enclosed, indoor vehicle parking facilities, usually consisting of numerous levels for which vehicles are intended to be parked. Otherwise known as multi-story car park, parking building, parking garage, stacked car parking and indoor parking.

Retail, High street: Retail buildings located on the high street in a particular area, usually terraced buildings located in the city centre or other high-traffic pedestrian zones.

Retail, Shopping centers: Enclosed centers for retail purposes. Examples may include, but are not limited to: regional malls and shopping malls.

Retail, Warehouse: Refers to buildings in an un-enclosed retail space, otherwise known as a strip center or strip mall, whereby buildings are usually stand-alone and situated side-by-side with their entrance facing a main street or carpark.

Residential, Multi-family: Refers to multiple residential dwelling spaces contained within one building, otherwise known as a multi-dwelling unit. This includes low-, mid- and high-rise apartment blocks.

Residential, Family homes: Includes both single-family homes and multi-dwelling units not including apartment blocks. A single-family home is a separate, free-standing residential building. A multi-dwelling family home includes those such as two-flats, duplex, semi-detached, and townhouses. Synonyms include: Single-family home, single-detached dwelling, detached house, single-family residence, separate house, free-standing house, townhouse, duplex, condo, semidetached, villa.

Residential, Student housing: Residential buildings used for the purpose of housing students, otherwise known as student apartments, student houses, student residence, student quarters, and student accommodation.

Self-storage: Indoor building or warehouse used for the purpose of self-storage for individuals and/or organizations, otherwise known as self-service storage.

Senior homes: Residential buildings used for the purpose of housing seniors, otherwise known as senior assisted living homes, retirement homes/apartments, retirement villages, old-age homes.

GRESB aims to benchmark participants against other similar property types. If that is not possible, we will group property types defined in “Other” based on their property type characteristics.

Requirements

You must include the whole floor area for all new construction projects, regardless of restrictions on management control resulting from (a) the landlord and tenant relationship or (b) the ownership structure of the entity.

Land (open or containing dormant buildings) is an unoccupied property type which does not meet the operational profile of other property types. Land should therefore be excluded from the reporting scope.

Floor area type: Select the type of floor area used across the portfolio. The floor area type selected will not influence the analysis, as long as it remains consistent throughout the entire Assessment. It is recommended to report on floor areas using the International Property Measurement Standard (IPMS). IPMS aims to establish a globally consistent methodology for property measurement.

GAV: Provide the GAV either according to market value/fair value or based on construction costs.

Note: GAV should be reported in millions.

Intent

Provide additional context on the entity’s reporting boundaries.

Requirements

The floor area reported in RC-NC1.1 must reflect the total size of the investable entity’s new construction projects. It is required to specify and clarify any inconsistencies with the reporting boundary requirements of GRESB in this open text box.

Open text box: The content of this open text box is not used for scoring, but will be included in the Benchmark Report. Participate may use this open text box to communicate on additional information about the reporting boundary

Intent

Describe the entity’s portfolio of major renovation projects. This information determines the structure of important elements of the Assessment.

Terminology

Data Centers: Property used for the purpose of data storage, processing and/or distribution. Examples may include, but are not limited to: telecommunications centers and data storage centers.

Hotel: Includes hotels, motels, youth hostels, lodging, and resorts.

Healthcare: Buildings used for the purpose of primary healthcare. Examples may include, but are not limited to: hospitals, clinics, physical therapy centers and mental health centers.

Industrial, Distribution warehouses: Industrial buildings used for the purpose of storing, processing and distribution of goods to wholesalers, retailers and/or consumers.

Industrial, Manufacturing: Industrial buildings used for the purpose of manufacturing. Otherwise known as a factory or manufacturing plant.

Industrial, Business parks: An industrial business park is an area zoned for the purpose of industrial development, where (light-weight) industrial buildings are grouped together with offices. Examples may include, but are not limited to: industrial estate, trading estate and enterprise zone.

Land: Land is an un-occupied property type which does not meet the operational profile of other property types. It can be either open land or land containing dormant buildings not in operational use. If the portfolio includes Land as property type, report on it in RC-NC1 and in the New Construction & Major Renovations Aspect.

Lodging, Leisure & Recreation: Indoor center used for the purpose of leisure and recreation. Examples may include, but are not limited to: exercise facilities, indoor sports courts, fitness studios, movie theaters, swimming centers and saunas/steam rooms.

Major Renovations: Alterations that affect more than 50 percent of the total building floor area or cause relocation of more than 50 percent of regular building occupants. Major renovation projects refer to buildings that were under construction at any time during the reporting period.

Medical office: Examples may include, but are not limited to: offices specifically used for the purpose of medical administration, secondary research or other purposes, exclusive of the property types specified for Healthcare.

Office: Includes free-standing offices, office terraces, unattributed office buildings and office parks.

Operational control: The ability to introduce and implement operating and/or environmental policies and measures.

Other: State the other property type. Possible other answers may include, but are not limited to: kindergarten, community halls. Only use this option if your investments do not fit into any of the options given.

Parking (indoors): Enclosed, indoor vehicle parking facilities, usually consisting of numerous levels for which vehicles are intended to be parked. Otherwise known as multi-story car park, parking building, parking garage, stacked car parking and indoor parking.

Retail, High street: Retail buildings located on the high street in a particular area, usually terraced buildings located in the city centre or other high-traffic pedestrian zones.

Retail, Shopping centers: Enclosed centers for retail purposes. Examples may include, but are not limited to: regional malls and shopping malls.

Retail, Warehouse: Refers to buildings in an un-enclosed retail space, otherwise known as a strip center or strip mall, whereby buildings are usually stand-alone and situated side-by-side with their entrance facing a main street or carpark.

Residential, Multi-family: Refers to multiple residential dwelling spaces contained within one building, otherwise known as a multi-dwelling unit. This includes low-, mid- and high-rise apartment blocks.

Residential, Family homes: Includes both single-family homes and multi-dwelling units not including apartment blocks. A single-family home is a separate, free-standing residential building. A multi-dwelling family home includes those such as two-flats, duplex, semi-detached, and townhouses. Synonyms include: Single-family home, single-detached dwelling, detached house, single-family residence, separate house, free-standing house, townhouse, duplex, condo, semidetached, villa.

Residential, Student housing: Residential buildings used for the purpose of housing students, otherwise known as student apartments, student houses, student residence, student quarters, and student accommodation.

Self-storage: Indoor building or warehouse used for the purpose of self-storage for individuals and/or organizations, otherwise known as self-service storage.

Senior homes: Residential buildings used for the purpose of housing seniors, otherwise known as senior assisted living homes, retirement homes/apartments, retirement villages, old-age homes.

GRESB aims to benchmark participants against other similar property types. If that is not possible, we will group property types defined in “Other” based on their property type characteristics.

Requirements

You must include the whole floor area for all major renovation projects, regardless of restrictions on management control resulting from (a) the landlord and tenant relationship or (b) the ownership structure of the entity.

Floor area type: Select the type of floor area used across the portfolio. The floor area type selected will not influence the analysis, as long as it remains consistent throughout the entire Assessment. It is recommended to report on floor areas using the International Property Measurement Standard (IPMS). IPMS aims to establish a globally consistent methodology for property measurement.

GAV: Provide the GAV either according to market value/fair value or based on construction costs.

Note: GAV should be reported in millions.

Intent

Provide additional context on the entity’s reporting boundaries.

Requirements

The floor area reported in RC-NC2.1 must reflect the total size of the investable entity’s major renovation projects. It is required to specify and clarify any inconsistencies with the reporting boundary requirements of GRESB in this open text box.

Open text box: The content of this open text box is not used for scoring, but will be included in the Benchmark Report. Participate may use this open text box to communicate on additional information about the reporting boundary

Intent

Describe the location of the entity’s new construction and/or major renovation projects by country. GRESB scoring uses the information to create country and regional peer groups.

Requirements

Select the countries in which the entity’s investments are located, using the fraction of total GAV or net operating income (NOI). Use the drop down menu.

Management

Intent and Overview

This Aspect focuses on how the organization integrates ESG into its overall business strategy. The purpose of this section is to (1) identify who in the participant organization is responsible for managing ESG issues and has decision-making authority; (2) communicate to investors how the entity structures management of ESG issues and (3) determine how ESG is embedded into the organization.

Sustainability Objectives

2018 Indicator

2 points , MP, G

Indicator aligned with PRI Reporting Framework 2018, Direct Property, PR 01: Responsible Property Investment (RPI) policy

Intent

Clear Environmental, Social and Governance (ESG) objectives help participants identify material issues and integrate them into overall day-to-day management practices. Integrating ESG practices into the overall business strategy fosters alignment between management of sustainability issues and the overall strategy of the organization. It also demonstrates commitment to monitoring ESG objectives and to meeting targets.

Terminology

Environmental objectives: Overall environmental goal, arising from the environmental policy, that an organization sets itself to achieve. The objectives should be quantifiable and correlated with the organization’s ambitions. In turn, they determine targets, which are detailed performance requirements necessary to achieve the environmental objectives.

ESG objectives: Strategic priorities and key topics for the management and/or improvement of ESG issues.

Fully integrated: Complete alignment between the management of sustainability issues and the overall strategy of the organization. A fully integrated strategy incorporates sustainability to manage risk and create competitive advantages beyond utility cost savings.

General sustainability objectives: Cross-cutting objectives to improve overall ESG performance, such as relative position on sustainability indices or rankings.

Governance objectives: Objectives to improve entity governance. These can relate to governance structures and composition of the organization and how this relates to economic, environmental and social dimensions, or the entity’s approach to corporate governance issues such as transparency, board composition, or bribery and corruption.

Health and well-being: “Health is a complete state of physical, mental and social well-being, not merely the absence of disease or infirmity”(WHO). Health & well-being is impacted by genetics and individual behavior as well as environmental conditions. Particularly relevant to GRESB stakeholders are the social determinants of health, which are the “conditions in which people are born, grow, work, live and age, and the wider set of forces and systems shaping the conditions of daily life.” These are the conditions that enable or discourage healthy living. This could include issues such as physical activity, healthy eating, equitable workplaces, maternity and paternity leave, access to healthcare, reduction in toxic exposures, etc.

Not integrated: Sustainability objectives were set disjointly from the overall strategy of the organization.

Overall business strategy: The organization's long-term strategy for meeting its objectives.

Partially integrated: Refers to any level of alignment less than 'fully integrated'.

Social objectives: Objectives to improve absolute or relative on social issues, such as stakeholder engagement or health and well-being.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Evidence: Document upload or hyperlink. The evidence should sufficiently support all the items selected for this question. If a hyperlink is provided, ensure that it is not outdated and the relevant page can be accessed within two steps.

The provided evidence should meet the following criteria:

  1. The objective(s) should be specific, and the evidence supports each of the selected objectives.
  2. Objectives should relate to the entity level. If this is not clear in the provided evidence, ensure to explain how the organizational level objectives relate to the entity in the text field provided for the location of the relevant information.
  3. Evidence should clearly indicate the public availability of the objectives (If applicable).

Open text box: The content of this open text box is not used for scoring, but will be included in the Benchmark Report. Participate may use this open text box to communicate on

  1. The scope of the objectives. The text should identify key sustainability priorities and issues relevant to the entity. If applicable, explain how these objectives relate to specific elements of the entity’s overall business strategy. Sustainability and/or ESG objectives can relate to quantifiable goals or to strategic developments;
  2. Time bounds around the objectives. The text should include a description indicating whether the objectives are short-term (one to two years), medium-term (two to three years) or long-term (more than three years);
  3. Explanation around the extent of integration of ESG objectives with business strategy and next steps to foster further alignment.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded based on each of the selected components, the objectives' level of integration into the overall business as well as their public availability.

The open text box is not scored and is for reporting purposes only.

References

EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017: 5.7, Analysis

SASB (March 2016)-Real Estate Owners, Developers & Investment Trusts: IF0402-05

3 points , MP, G

Indicator aligned with PRI Reporting Framework 2018, Strategy & Governance module, SG 07 and SG 08

Intent

The intent of this indicator is to identify resources allocated to sustainability management. Having personnel dedicated to sustainability issues increases the likelihood that the entity’s sustainability objectives will be properly managed and targets will be met.

Terminology

Dedicated employee(s) for whom sustainability is the core responsibility: The employee(s)’ main responsibility is defining, implementing and monitoring the sustainability objectives at organization and/or entity level.

Employee(s) for whom sustainability is among their responsibilities: The implementation and monitoring of sustainability is part of the employee’s role, but is not necessarily their main responsibility.

ESG objectives: Strategic priorities and key topics for the management and/or improvement of ESG issues.

Investment partners (co-investor/JV partners): A General Partner that co-owns and operates (part of) the entity’s assets and is responsible for implementing ESG objectives at a property level.

Persons responsible: A person or group of people who work on the implementation and completion of the task, project or strategy.

Requirements

Select yes or no. If yes, select all applicable sub-options.

If you select External Consultants, also state the name of the organization.

Details of employee: Participants must provide an e-mail address together with the name and job title of the relevant employee. This information will remain confidential and will only be used for data validation purposes.

Name of the organization: Provide the full name of the organization. You may be asked for additional information about the organization(s). It is possible to report on multiple organizations.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded to each selected responsible party and are then aggregated to calculate the indicator’s final score. It is not necessary to select all answer options in order to obtain the maximum score for this indicator.

Reporting more than one external consultants will not impact scoring; reported answer options in these fields are validated individually, but scores will not be aggregated.

The LinkedIn profiles of the persons responsible for implementing the sustainability objectives are optional fields and do not impact scoring.

References

GRI Sustainability Reporting Standards (2016): 102-20

Recommendations of the Task Force on Climate-Related Financial Disclosures June 2017: Governance A&B

Sustainability Decision Making

2018 Indicator

2 points , MP, G

Indicator aligned with PRI Reporting Framework 2018, Strategy & Governance module, SG 07 and SG 08

Intent

The intent of this indicator is to explore the existence of an internal taskforce focused on sustainability components. The existence of a taskforce focused on sustainability issues demonstrates a structured approach towards integrating sustainability practices across the organization.

Terminology

Asset manager: A person or group of people responsible for developing and overseeing financial and strategic developments of real estate investments at asset level.

Board of Directors: A body of elected or appointed members who jointly oversee the activities of a company or organization as detailed in the corporate charter. Boards normally comprise both executive and non-executive directors.

Fund/portfolio manager: A person or a group who manages a portfolio of real estate investments, and the deployment of investor capital, by creating and implementing asset level strategies, across the entire portfolio.

Property manager: An individual or organization in charge of overseeing day-to-day property operations.

Senior Management Team: A team of individuals who have the day-to-day responsibility of managing the entity/organization. Senior management are sometimes referred to, within corporations, as executive management, executive leadership team, top management, upper management, higher management, or simply seniors.

Sustainability taskforce/committee: A group of individuals who meet, at least four times per year, to discuss and monitor the implementation of the organization’s sustainability objectives.

Requirements

Select yes or no. If yes, select all applicable sub-options.

If you select External Consultants, also state the name of the organization.

Name of the organization: Provide the full name of the organization. You may be asked for additional information about the organization(s). It is possible to report on multiple organizations.

Other: State the other type of member included in the taskforce. Other answers can include individuals (e.g. ESG Manager, IR Manager, HR representative) or groups of individuals (e.g. Product innovation team). It is possible to report on multiple other answers.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded to each selected checkbox option and are then aggregated to calculate the indicator’s final score.

Reporting multiple other answers will not impact scoring; reported answer options in this field are validated individually, but scores will not be aggregated.

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

References

GRI Sustainability Reporting Standards (2016): 103-32

RobecoSAM Corporate Sustainability Assessment 2017: 3.1.5, Responsibilities & Committees

Recommendations of the Task Force on Climate-Related Financial Disclosures June 2017: Governance A&B

1 point , MP, G

Intent

The presence of senior management dedicated to sustainability increases the likelihood that sustainability objectives will be met. A structured process to keep the most senior decision-maker informed on the entity’s sustainability performance increases accountability and encourages continuous improvement of sustainability performance.

Terminology

Board of Directors: A body of elected or appointed members who jointly oversee the activities of a company or organization as detailed in the corporate charter. Boards normally comprise both executive and non-executive directors.

Fund/portfolio manager: A person or a group who manages a portfolio of real estate investments, and the deployment of investor capital, by creating and implementing asset level strategies, across the entire portfolio.

Investment Committee: A group of individuals who oversee the entity’s investment strategy, evaluates investment proposals and maintains the investment policies, subject to the Board’s approval.

Senior decision-maker accountable for sustainability: A senior individual with sign off (approval) authority for approving strategic sustainability objectives and steps undertaken to achieve these objectives. The accountable person can delegate the work to other responsible people who will work on the implementation and completion of the task, project or strategy.

Person accountable: A person with sign off (approval) authority over the deliverable task, project or strategy. The accountable person can delegate the work to other responsible people who will work on the implementation and completion of the task, project or strategy.

Senior Management Team: A team of individuals who have the day-to-day responsibility of managing the entity/organization. Senior management are sometimes referred to, within corporations, as executive management, executive leadership team, top management, upper management, higher management, or simply seniors.

Sustainability strategy: Strategy which (1) sets out the participant’s procedures and (2) sets the direction and guidance for an organization’s implementation of sustainability measures.

Requirements

Select yes or no. If yes, select one sub-option and optionally, complete the open text box.

Senior decision-maker: The organization’s most senior decision-maker on sustainability is expected to be actively involved in the process of defining the sustainability objectives and should approve associated strategic decisions regarding sustainability. This person can be the same as the individual identified in MA2.

Other: State the other senior decision-maker on sustainability issues.The answer should only refer to the department or governance structure of which the senior decision maker is part of. Include just one other answer.

Details of employee: Participants must provide an e-mail address together with the name and job title of the relevant employee. This information will remain confidential and will only be used for data validation purposes.

Open text box: The content of this open text box is not used for scoring, but will be included in the Benchmark Report. Participate may use this open text box to communicate on

  1. Means of communication. Examples can include, but are not limited to: written memos, formal reports, presentations or meeting minutes;
  2. Frequency of reporting. Examples can include, but are not limited to: monthly, quarterly or annually;
  3. Contents of reporting. Examples can include, but are not limited to: (i) an overview of asset performance (quantitative), (ii) realized sustainability performance against objectives, (iii) updates regarding long-term strategic objectives, (iv) updates/notifications regarding regulatory changes or (v) updates regarding proposed actions to improve the performance of the assets.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded based on the selected decision-maker. It is not possible to select more than one answer option.

The open text box is not scored and is for reporting purposes only.

References

CDP, CC1.1

GRI Sustainability Reporting Standards (2016): 103-32

RobecoSAM Corporate Sustainability Assessment 2017: 3.1.5, Responsibilities & Committees

Recommendations of the Task Force on Climate-Related Financial Disclosures June 2017: Governance A&B

3 points , MP, G

Indicator aligned with PRI Reporting Framework 2018, Strategy & Governance module, SG 08

Intent

This indicator intends to identify whether, and how, ESG issues are addressed in employee performance targets. It also identifies how the sustainability-related objectives outlined in MA1 are reflected within the organizational structure. Including sustainability factors in annual performance targets for employees can increase the organization’s capacity to improve sustainability performance.

Terminology

Annual performance targets: Targets set in annual performance reviews, which are assessments of employee performance.

Board of Directors: A body of elected or appointed members who jointly oversee the activities of a company or organization as detailed in the corporate charter. Boards normally comprise both executive and non-executive directors.

ESG Factors: Criteria associated with the entity’s ESG objectives identified in MA1.

Financial consequences: Predetermined monetary benefits incorporated into the employee compensation structures. The financial consequences are contingent upon the achievement of the annual performance targets.

Non-financial consequences: Non-financial benefits (or detriments), such as verbal or written recognition, non-financial rewards or opportunities. The non-financial consequences are contingent upon the achievement of the annual performance targets.

Senior Management Team: A team of individuals who have the day-to-day responsibility of managing the entity/organization. Senior management are sometimes referred to, within corporations, as executive management, executive leadership team, top management, upper management, higher management, or simply seniors.

Requirements

Select yes or no. If yes, select all applicable sub-options.

This indicator considers only employee performance reviews. Accordingly, if the entity employs a contractor, any review of their performance should not be included in the answer to this indicator.

Other: State the other employee type. Other answers should relate to groups of employees, such as asset managers, property managers, or acquisition teams.

Evidence: Document upload or document name and date. The evidence should sufficiently support all the items selected for this question. In the absence of an upload, providing the document name AND date of publication is mandatory, and you may be asked to disclose the document to GRESB as part of the validation process.

The provided evidence should cover the following elements:

  1. Existence of employee targets that cover ESG related issues related to the objectives identified in MA1.
  2. If applicable, mechanisms in place that ensure these targets are met (i.e., consequences - positive or negative).

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded to each selected group of employees, and whether or not targets have consequences. Points are then aggregated to calculate the indicator’s final score.

Reporting multiple other answers will not impact scoring; reported answer options in this field will be validated individually, but scores will not be aggregated.

The reported answer options are validated based on the provided evidence, and points are contingent upon validity of the supporting evidence.

References

RobecoSAM Corporate Sustainability Assessment 2017: 3.1.7, Executive Compensation-Success Metrics and Vesting

Policy & Disclosure

Intent and Overview

The purpose of this section is to (1) describe the organization’s ESG policies and (2) understand how the organization communicates its ESG performance.

Institutional investors and other shareholders are primary drivers for greater sustainability reporting and disclosure among investable entities. Real estate companies and managers share how ESG policies and management practices are implemented, and how these practices impact the business through formal disclosure mechanisms. This Aspect focuses on the policies established to formally manage and communicate ESG issues to investors.

ESG Policies

2018 Indicator

3 points , MP, G

Indicator aligned with PRI Reporting Framework 2018, Direct Property, PR 01: Responsible Property Investment (RPI) policy

Intent

The intent of this indicator is to describe the existence and scope of policies that address environmental issues. Policies on environmental issues assist organizations with incorporating sustainability criteria into their business practices.

Terminology

Biodiversity and habitat: Issues related to wildlife, endangered species, ecosystem services, habitat management, and relevant topics. Biodiversity refers to the variety of all plant and animal species. Habitat refers to the natural environment in which these plant and animal species live and function.

Building safety: Environmental issues with the potential to create or exacerbate risks to human safety, such as structural failure.

Climate change adaptation: Preparation for long-term change in climatic conditions or climate related events. Example of climate change adaptation measures can include, but are not limited to: building flood defenses, xeriscaping and using tree species resistant to storms and fires, adapting building codes to extreme weather events.

Energy consumption/management: Fuel consumption or management of energy from renewable and non-renewable sources.

Environmental attributes of building materials: Life-cycle environmental characteristics of the building materials, such as embodied carbon or water

GHG emissions: GHGs refers to the seven gases listed in the GHG Protocol Corporate Standard: carbon dioxide (CO2); methane (CH4); nitrous oxide (N2O); hydrofluorocarbons (HFCs); perfluorocarbons (PFCs); nitrogen trifluoride (NF3) and sulphur hexafluoride (SF6).

Policy: Defines an organizational commitment, direction or intention as formally adopted by the organization.

Resilience: Preparedness of the built environment towards existing and future climate changes (i.e., the ability to absorb disturbances such as increased precipitation or flooding while maintaining its structure). This can be achieved by management policies, informational technologies, educating tenant, community, suppliers and physical measures at the asset level.

Waste management: Issues associated with hazardous and non-hazardous waste generation, reuse, recycling, composting, recovery, incineration, landfill and on-site storage.

Water consumption/management: Planning, developing, distributing and managing the optimum use of water resources.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Evidence: Document upload is mandatory for this indicator. The evidence should sufficiently support all the items selected for this question.

Other: State the other environmental issue.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded to each selected checkbox option and are then aggregated to calculate the indicator’s final score.

Reporting multiple other answers will not impact scoring; reported answer options in this field are validated individually, but scores will not be aggregated.

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

The reported answer options are validated based on the provided evidence, and points are contingent upon validity of the supporting evidence.

References

The United Nations Framework Convention on Climate Change, 1994 Global Reporting Initiative

EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017: 7.9, Narrative on performance

GRI Sustainability Reporting Standards (2016): GRI, 301, 302, 303, 304, 305, 306, 307; GRI, 416

2 points , MP, G

Indicator aligned with PRI Reporting Framework 2018, Direct Property, PR 01: Responsible Property Investment (RPI) policy

Intent

The intent of this indicator is to describe the existence and scope of policies that address social issues. Policies on social issues assist organizations with incorporating sustainability criteria into their business practices.

Terminology

Asset level safety (for tenants): Protecting tenants and building visitors from structural characteristics that can cause danger, risk, or injury.

Child labor: Work that children should not be doing because they are too young, or, if they have reached the minimum age, because it is dangerous or otherwise unsuitable for them.

Diversity: Similarities and differences among employees in terms of age, cultural background, physical abilities and disabilities, race, religion, sex, and sexual orientation.

Equal opportunity: The right to be treated without discrimination, including, but not limited to, on the grounds of one‘s sex, race, or age.

Health and well-being: “Health is a complete state of physical, mental and social well-being, not merely the absence of disease or infirmity”(WHO). Health & well-being is impacted by genetics and individual behavior as well as environmental conditions. Particularly relevant to GRESB stakeholders are the social determinants of health, which are the “conditions in which people are born, grow, work, live and age, and the wider set of forces and systems shaping the conditions of daily life.” These are the conditions that enable or discourage healthy living. This could include issues such as physical activity, healthy eating, equitable workplaces, maternity and paternity leave, access to healthcare, reduction in toxic exposures, etc.

Employee health & well-being: The health & well-being of employees responsible for the entity.

Tenant/customer and community health & well-being: The health & well-being of tenants and customers of the entity as well as the community surrounding the entity’s individual real estate assets.

Forced or compulsory labor: All work or service which is expected from any person under the menace of any penalty and for which the said person has not offered himself voluntarily.

Labor-management relationships: Set of principles and procedures governing the relationship between management and the labor force.

Occupational safety (for employees):Occupational safety focuses on the primary prevention of hazards within workplace. This includes the reduction of risk factors at the workplace leading to cancers, accidents, musculoskeletal diseases, respiratory diseases, hearing loss, circulatory diseases, stress related disorders and communicable diseases and others.

Performance and career development: Training, mentoring, reviews, and other processes intended to understand employee performance and guide career development.

Policy: Defines an organizational commitment, direction or intention as formally adopted by the organization.

Stakeholder engagement: Engagement with individuals/entities that have an interest in the entity.

Worker rights: Fundamental principles and rights at work, covering issues such as freedom of association, right to collective bargaining, the elimination of forced or compulsory labor, the abolition of child labor and the elimination of discrimination with respect to employment and occupation.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Evidence: Document upload or document name and date. The evidence should sufficiently support all the items selected for this question. In the absence of an upload, providing the document name AND date of publication is mandatory, and you may be asked to disclose the document to GRESB as part of the validation process.

Other: State the other social issue.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded to each selected checkbox option and are then aggregated to calculate the indicator’s final score.

Reporting multiple other answers will not impact scoring; reported answer options in this field are validated individually, but scores will not be aggregated.

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

The reported answer options are validated based on the provided evidence, and points are contingent upon validity of the supporting evidence.

References

EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017: 7.9, Narrative on performance

GRI Sustainability Reporting Standards (2016): GRI, 301, 302, 303, 304, 305, 306, 307; GRI, 416

ILO Declaration on Fundamental Principles and Rights at Work

World Health Organization

2 points , MP, G

Indicator aligned with PRI Reporting Framework 2018, Direct Property, PR 01: Responsible Property Investment (RPI) policy

Intent

This indicator examines the scope and existence of a governance policy. Policies on governance assist organizations with incorporating the management of governance issues into their business practices. This indicator asks whether a participant has a policy in place. RO1 and RO2 (Risks and Opportunities) ask the participant to explain how that policy is implemented.

Terminology

Bribery: The offering, giving, receiving or soliciting an item of value to influence the actions of an official or other person in charge of a public or legal fiduciary duty.

Corruption: Abuse of entrusted power for private gain.

Data protection and privacy:Process of protecting data and involves the relationship between the collection and dissemination of data and technology, the public perception and expectation of privacy and the political and legal underpinnings surrounding that data. It aims to strike a balance between individual privacy rights while still allowing data to be used for business purposes. Data protection is also known as data privacy or information privacy.

Executive compensation: The financial payments and non-monetary benefits provided to high-level management in exchange for their work on behalf of an organization.

Fiduciary duty: A legal obligation of one party to act in the best interest of another. The obligated party is typically a fiduciary, that is, someone entrusted with the care of money or property. Also called fiduciary obligation.

Fraud: Wrongful deception intended to result in financial or personal gain.

Governance issues: Governance structure and composition of the organization. This includes how the highest governance body is established and structured in support of the organization’s purpose, and how this purpose relates to economic, environmental and social dimensions.

Policy: Defines an organizational commitment, direction or intention as formally adopted by the organization.

Remuneration: Basic salary plus additional amounts such as those based on years of service, bonuses including cash and equity such as stocks and shares, benefit payments, overtime, time owed, and any additional allowances (such as transportation, living and childcare allowances).

Whistle-blower mechanism: A process that offers protection for individuals that want to reveal illegal, unethical or dangerous practices. An efficient whistle-blower mechanism prescribes clear procedures and channels to facilitate the reporting of wrongdoing and corruption, defines the protected disclosures, outlines the remedies and sanctions for retaliation.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Evidence: Document upload or document name and date. The evidence should sufficiently support all the items selected for this question. In the absence of an upload, providing the document name AND date of publication is mandatory, and you may be asked to disclose the document to GRESB as part of the validation process.

Acceptable evidence may include a formal policy that is in place such as a company Policy document, official documents, or other resources describing the entity's governance policies. Reference can be provided, such as bullets or passages within a policy, to describe each selected issue.

Other: State the other governance issue.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded to each selected checkbox option and are then aggregated to calculate the indicator’s final score.

Reporting multiple other answers will not impact scoring; reported answer options in this field are validated individually, but scores will not be aggregated.

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

The reported answer options are validated based on the provided evidence, and points are contingent upon validity of the supporting evidence.

References

EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017: 2017: 7.9, Narrative on performance

GRI Sustainability Reporting Standards (2016): 102-35; 102-37; GRI 205

RobecoSAM Corporate Sustainability Assessment 2017: 3.1.7

Not scored , MP, G

Intent

This indicator identifies the metrics used by the organization to monitor diversity at governance and workforce level. Diversity on boards has become a clear priority for investors and is considered to positively impact investment decisions and increases organizational competitiveness.

Terminology

Age group distribution: Percentage of a population, at each age.

Board tenure: Refers to the period or term of an organization board of directors.

Socioeconomic background: Combined measure of sociological and economic background of a person.

Gender ratio: Proportion of one gender to another in a given population.

Gender pay gap:Percentage difference of average hourly earnings between men and women.

Governance body:Committee or board responsible for the strategic guidance of the organization, the effective monitoring of management, and the accountability of management to the broader organization and its stakeholders. Examples of governance bodies may include Board of Directors and Non-Executive Directors.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Open text box: The content of this open text box is not used for scoring, but will be included in the Benchmark Report. Participate should use this open text box to communicate on the following:

  • Supporting narrative to add context to the information provided;
  • Challenges the organization faces in addressing diversity gaps;
  • Policies and targets to strengthen diversity in the long-term;
  • Any other relevant information monitoring processes and calculation methods.

Scoring

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

References

EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017: 5.1, Diversity-Employee gender diversity

GRI Sustainability Reporting Standards (2016): 102-22

RobecoSAM Corporate Sustainability Assessment 2017: 3.1.3, Diversity Policy

Sustainability Disclosure

2018 Indicator

4 points , MP, G

Indicator aligned with PRI Reporting Framework 2018, Direct Property, PR 10

Intent

The intent of this indicator is to assess the level(s) of sustainability disclosure undertaken by the entity. Disclosure of sustainability performance demonstrates an entity’s transparency in explaining how sustainability policies and management practices are implemented by the entity, and how these practices impact the business.

Terminology

Alignment: To agree and match with a recognized sustainability standard (either voluntary or mandatory).

Annual report: A yearly record of an organization’s financial performance that is distributed to investors under applicable financial reporting regulations.

Dedicated section on corporate website: A section of the organization’s website that explicitly addresses ESG performance.

Disclosure: The act of making information or data readily accessible and available to all interested individuals and institutions. Disclosure must be external and cannot be an internal and/or ad hoc communication within the participant organization.

Entity reporting to investors: A report prepared by the participant for the purpose of informing investors on the (sustainability) performance of the entity. A summary outlining an entity’s overall approach to sustainability that does not contain any analysis of performance (as defined below) is insufficient.

ESG actions: Specific activities performed to improve management of environmental, social and governance issues within the organization.

ESG performance: Reporting of material indicators that reflect implementation of environmental, social, or governance (ESG) management.

Integrated Report: A report that is aligned with the requirements of the International Integrated Reporting Council (IIRC) Integrated Reporting Framework (December 2013).

Reporting Level:

  1. Entity: related specifically to the named entity, where entity is defined as the investable portfolio for which you are submitting an Assessment response.
  2. Investment Manager: related to the investment management organization or company of which the participating entity forms a part.
  3. Group: related to the group of companies of which the participating entity forms a part.

Standalone sustainability report: A report dedicated to the organization’s (and if applicable, entity’s) sustainability performance.

Requirements

Select yes or no. If yes, select all applicable sub-options.

In all cases:

  1. Select the applicable reporting level. If the organization reports at multiple levels, you should select the most detailed reporting level;
  2. If applicable, select alignment from the dropdown lists to confirm that your method of reporting is aligned with an external standard or guideline. The list is based on leading international best practice guides for sustainability reporting. If reporting is aligned with more than one standard, select the standard with which there is most alignment;
  3. Provide document upload or URL. A piece of supporting evidence document or URL cannot be uploaded for more than one disclosure method selected.
  4. (If applicable) Evidence provided in PD5.1 will also be used to validate PD5.2 and it should include confirmation of the existence and type of third-party review indicated in PD5.2.

Evidence: Document upload or hyperlink. The evidence should sufficiently support all the items selected for this question. If a hyperlink is provided, ensure that it is not outdated and the relevant page can be accessed within two steps.

  • Integrated report: The document upload or URL provided must contain evidence of alignment with the International Integrated Reporting Council (IIRC) Integrated Reporting Framework (December 2013).
  • Reporting to investor: A summary outlining an entity’s overall approach to sustainability that does not contain any analysis of performance is insufficient. Entity reporting to investors should include year-on-year comparison of sustainability performances supported by explanatory comments. Performance achievements should be linked to measures formerly implemented by the entity.

Other: State the other method of reporting. Include just one other answer.

Reporting period: Answers must refer to the reporting period identified in EC3. Except for Stand-alone sustainability reports and integrated reports, that Stand-alone sustainability reports can also refer to the year prior to the reporting year, and integrated reports can also refer to two years prior to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity and/or organization level.

Scoring

Points are awarded to each disclosure method based on (1) reporting level, (2) alignment and (3) public availability.

Reporting levels receive the following points: Group, 0.25 points; Investment Manager, 0.5 points; and Entity, 1 point.

Reporting multiple other answers will not impact scoring, and it is not necessary to select all answer options in order to obtain the maximum score for this indicator.

The reported answer options are validated based on the provided evidence, and points are contingent upon validity of the supporting evidence.

References

ANREV Sustainability Reporting Guidelines, 2016

EPRA Best Practice Recommendations in Sustainability Reporting

September 2017 GRI Sustainability Reporting Guidelines, 2016: 202-1; 205-3; 308-2

308-2 IIRC Integrated Reporting Framework, 2013

INREV Sustainability Reporting Guidelines, 2016

2 points , MP, G

Intent

The purpose of this indicator is to assess the entity’s use of third-party, review to ensure the reliability, integrity and accuracy of ESG disclosure.

ESG-related information is essential to the evaluation of investments’ performance. Third-party review on sustainability disclosure help investors confirm the information disclosed.

Terminology

Assured/Verified: The process of checking data, as well as its collection methods and management systems, through a systematic, independent and documented process against predefined criteria or standards. Assurance/Verification services should be in line with a standard and can only be provided by accredited professionals.

Checked: A third-party review that does not comply with the definition of Assurance/Verification.

Requirements

Respond for all methods of reporting selected in PD5.1. For each disclosure:

  1. State whether the methods of reporting are checked, verified or assured (select one option; the most detailed level of scrutiny to which the reporting was subject);
  2. Select the assurance/verification standard (if applicable) from the dropdown menu (see Accepted assurance schemes in the Appendices); Any "Other" standard selected from the Scheme name dropdown menu will be subject to validation;
  3. State the name of the reviewing/verification/assurance organization.

Other: State the other method of reporting. Include just one other answer, which must match the answer provided in PD5.1

Reporting period: Answers must refer to the reporting period identified in EC3. Except Stand-alone sustainability reports and integrated reports, that which Stand-alone sustainability reports can also refer to the year prior to the reporting year, and integrated reports can also refer to two years prior to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity and/or organization level.

Scoring

Points are awarded based on the level of review of the reported disclosure methods.

PD5.2 is linked to PD5.1. The selections of disclosure methods in both questions must match, otherwise the answer in PD5.2 will not be considered valid. Evidence provided in PD5.1 will be used to validate this indicator; therefore, the evidence in PD5.1 should also include confirmation of the existence and type of third-party review.

The reported answer options are validated based on the provided evidence, and points are contingent upon validity of the supporting evidence.

References

GRESB’s accepted assurance and verification standards as well as criteria for accepted standards are aligned with the Carbon Disclosure Project (CDP)

EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017: 5.4, Third party assurance

RobecoSAM Corporate Sustainability Assessment 2017: 4.1.2, Assurance

Not scored , MP, G

Intent

This indicator intends to identify public commitments made by the organization. A public commitment to sustainability through externally recognized initiatives contributes to the organization’s credibility and strengthens investor confidence.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Evidence: Hyperlink is mandatory for this indicator. The evidence should sufficiently support all the items selected for this question. Ensure that the hyperlink is not outdated and the relevant page can be accessed within two steps.

To qualify as valid supporting evidence, the URL must demonstrate the existence of publicly available commitment to ESG leadership relating to each of the issues selected.

Other: State the other public commitment. It is possible to report multiple other answers.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity and/or organization level.

Scoring

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

Not scored , MP, G

Intent

This indicator intends to identify whether the reporting entity has a defined process in place to communicate any ESG-related misconducts to its stakeholders if the entity has incurred any environment, social or governance fines and/or penalties at its investment properties or elsewhere.

Terminology

ESG fines and/or penalties: Sanctions resulting from an illegal act or non-compliant behavior, which directly harms the environment and/or stakeholders of the organization.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Other: State the other stakeholder groups. It is possible to add multiple other answers.

Open text box: The content of this open text box is not used for scoring, but will be included in the Benchmark Report. Participate may use this open text box to communicate on the process the reporting entity intends to follow in order to communicate any ESG-related misconducts to its stakeholders.

Scoring

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

*The information in PD7.1 and PD7.2 may be used as criteria for the recognition of 2018 Sector Leaders.

Reference

GRI Sustainability Reporting Standards, 2016: 102-17, Mechanisms for advice and concerns about ethics

CDP Reporting Guidelines, Compliance

RobecoSAM Corporate Sustainability Assessment, 2017: 3.3.6, Report on breaches

Not scored , MP, G

Intent

This indicator intends to ensure the communication of any environmental fines and/or penalties to the reporting entity’s investor. Recurring misconducts and penalties can increase the risk profile of the portfolio as they impose financial, management and regulatory burdens on the entity.

Terminology

ESG fines and/or penalties: Sanctions resulting from an illegal act or non-compliant behavior, which directly harms the environment and/or stakeholders of the organization.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Open text box: The content of this open text box is not used for scoring, but will be included in the Benchmark Report. Participate may use this open text box to communicate on how the entity has resolved or intends to resolve the above issue(s).

Scoring

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

*The information in PD7.1 and PD7.2 may be used as criteria for the recognition of 2019 Sector Leaders.

References

GRI Sustainability Reporting Standards, 2016: 205-3; 419-1

EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017: 2017: 5.8, H&S

Risks & Opportunities

This Aspect investigates the steps undertaken by organizations to stay abreast of ESG related risks related to bribery and corruption, climate change, environmental legislation, market risks and other material ESG risks. The Aspect also addresses the actions taken to capitalize on identified improvement opportunities.

Governance

2018 Indicator

1 point , IM, G

(refers to PD3 Policy & Disclosure Aspect)

Intent

This indicator examines specific actions taken to limit exposure to governance-related risks. It is linked to PD3 in Policy & Disclosure, and refers to the implementation of the policy that addresses risks from exposure to governance issues (as defined in PD3).

Terminology

Governance risks for employees: Examples can include, but are not limited to: bribery and corruption risks, insider trading, sharing of confidential information.

Investment due diligence process: A systematic process to collect and interpret information about a prospective investment.

Regular follow-ups: Training offered at least once a year to employees, starting from their second year of employment.

Employee training on governance risks: Employee training ensures that employees understand and adhere to the laws, regulations and internal corporate policies that apply to their daily roles is essential to ensuring that compliance regulations are met in the workplace.

Whistle-blower mechanism: A process that offers protection for individuals that want to reveal illegal, unethical or dangerous practices. An efficient whistle-blower mechanism prescribes clear procedures and channels to facilitate the reporting of wrongdoing and corruption, defines the protected disclosures, outlines the remedies and sanctions for retaliation.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Evidence: Document upload or document name and date. The evidence should sufficiently support all the items selected for this question. In the absence of an upload, providing the document name AND date of publication is mandatory, and you may be asked to disclose the document to GRESB as part of the validation process.

The provided evidence should cover the following elements:

  1. The existence of selected systems and procedures;
  2. Proof of implementation into the organization’s operations.

Examples of supporting evidence may include an excerpt from the organization’s policy manual, example of formal update sent by the organization’s general counsel, due diligence checklists, employee training slides, or a signed letter of verification from a third party.

A sign-off from employee on the Code of Conduct is not considered valid evidence for formal employee training.

Other: State the other system or procedure in place. It is possible to report multiple other answers.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at organization level.

Scoring

Points are awarded to each selected checkbox option and are then aggregated to calculate the indicator’s final score.

Reporting multiple other answers will not impact scoring; reported answer options in this field are validated individually, but scores will not be aggregated.

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

The reported answer options are validated based on the provided evidence, and points are contingent upon validity of the supporting evidence.

References

OECD Cleangovbiz, “Whistleblower protection: encouraging reporting”, 2012

2 points , IM, G

Intent

This indicator is intended to describe the variables included the entity’s governance and/or social risk assessments. Risk assessments refer to the identification and quantification of processes, systems and/or scenarios that could potentially cause harm to the entity and its underlying investors. It is important that organizations monitor their exposure to governance-related risks, as these can negatively impact reputation and expose the entity to civil and criminal penalties.

RO2 asks whether certain governance and/or social issues are assessed in a risk assessment by the entity, which is different from social and governance policies (PD2 and PD3).

Terminology

Bribery: The offering, giving, receiving or soliciting an item of value to influence the actions of an official or other person in charge of a public or legal fiduciary duty.

Corruption: Abuse of entrusted power for private gain.

Child labor: Work that children should not be doing because they are too young, or, if they have reached the minimum age, because it is dangerous or otherwise unsuitable for them.

Diversity: Similarities and differences among employees in terms of age, cultural background, physical abilities and disabilities, race, religion, sex, and sexual orientation.

Equal opportunity: The right to be treated without discrimination, including, but not limited to, on the grounds of one‘s sex, race, or age.

Executive compensation: The financial payments and non-monetary benefits provided to high-level management in exchange for their work on behalf of an organization.

Forced or compulsory labor: All work or service which is expected from any person under the menace of any penalty and for which the said person has not offered himself voluntarily.

Labor-management relationships: Set of principles and procedures governing the relationship between management and the labor force.

Risk assessment: Careful examination of the factors that could potentially adversely impact the value or longevity of a real estate asset. The results of the assessment assist in identifying measures that have to be implemented in order to prevent and mitigate the risks.

Shareholder rights: Assessing the potential risk of breaking or working against the entity’s contractual shareholder rights. Shareholder rights are defined in the company’s charter and bylaws.

Worker rights: Fundamental principles and rights at work, covering issues such as freedom of association, right to collective bargaining, the elimination of forced or compulsory labor, the abolition of child labor and the elimination of discrimination with respect to employment and occupation.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Evidence: Document upload or document name and date. The evidence should sufficiently support all the items selected for this question. In the absence of an upload, providing the document name AND date of publication is mandatory, and you may be asked to disclose the document to GRESB as part of the validation process.

The provided evidence should cover the following elements:

  1. Risk exposure - Evidence of the methodology used to identify risks. A good example would be a risk register, or matrix ranking the materiality of each risk.
  2. Evidence should explain the governance risk assessments as well as the response to mitigate the outcomes of the assessments. Examples of responses to mitigate outcomes can include the development of policies
  3. Applicability level - The parties included in the risk assessment. Examples can include, but are not limited to: individual parts of the business or business units, employees, business partners, suppliers, contractors and sub-contractors and other third parties.

Examples of supporting evidence may include an excerpt from the organization’s policy manual, example of formal update sent by the organization’s general counsel, or a signed letter of verification from a third party.

Example of supporting evidence for “child labor”: signed statement describing the assessment of risks of modern slavery and child labor within your own business and across your supply chain (or a sample of suppliers).

Other: State the other governance issue.

It is possible to report multiple other answers.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded to each selected checkbox option and are then aggregated to calculate the indicator’s final score.

Reporting multiple other answers will not impact scoring; reported answer options in this field are validated individually, but scores will not be aggregated.

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

The reported answer options are validated based on the provided evidence, and points are contingent upon validity of the supporting evidence.

References

RobecoSAM Corporate Sustainability Assessment 2017: 5.2.3, Human rights-assessment

Environmental & Social

2018 Indicator

2 points , IM, E

Indicator aligned with PRI Reporting Framework 2018, Direct Property, PR 04

Intent

The intent of this indicator is to identify if the entity performs asset-level environmental and/or social assessments as a standard part of the due diligence process for new acquisitions.

Risk assessments help to reduce exposure to long-term sustainability risks. Integration of sustainability risk assessments into the acquisition process demonstrate a commitment to ESG management, a focus on mitigating risks that might impact returns, and a forward-looking approach to the development of the portfolio.

Terminology

Building safety and materials: Assessment to identify potential hazards resulting, for example, from vulnerabilities caused by the construction materials used, major structural flaws or the presence of asbestos.

Climate change adaptation: Preparation for long-term change in climatic conditions or climate related events. Example of climate change adaptation measures can include, but are not limited to: building flood defenses, xeriscaping and using tree species resistant to storms and fires, adapting building codes to extreme weather events.

Contamination: Land and groundwater pollution which may require action to reduce risk to people or the environment. As an example, contamination can be assessed through a Phase I or II Environmental Site Assessment.

Due diligence process: The process through which a potential acquirer evaluates a target asset for an acquisition, contributing to well-informed investment decision-making.

Energy efficiency: Refers to products or systems using less energy to provide the same consumer benefit.

Energy supply: Availability of conventional power (generated by the combustion of fuels: coal, natural gas, oil) or renewable energy (e.g. sun, wind, water, organic plant and waste material).

Environmental risks: Impact on living and non-living natural systems, including land, air, water and ecosystems. This includes, but is not limited to biodiversity, transport and product and servicerelated impacts, as well as environmental compliance and expenditures.

GHG emissions: GHGs refers to the seven gases listed in the GHG Protocol Corporate Standard: carbon dioxide (CO2); methane (CH4); nitrous oxide (N2O); hydrofluorocarbons (HFCs); perfluorocarbons (PFCs); nitrogen trifluoride (NF3) and sulphur hexafluoride (SF6).

Health and well-being: “Health is a complete state of physical, mental and social well-being, not merely the absence of disease or infirmity”(WHO). Health & well-being is impacted by genetics and individual behavior as well as environmental conditions. Particularly relevant to GRESB stakeholders are the social determinants of health, which are the “conditions in which people are born, grow, work, live and age, and the wider set of forces and systems shaping the conditions of daily life.” These are the conditions that enable or discourage healthy living. This could include issues such as physical activity, healthy eating, equitable workplaces, maternity and paternity leave, access to healthcare, reduction in toxic exposures, etc.

A risk assessment on health and well-being might address only one or both of these topics, and could include assessments of risks associated with employees, customers, surrounding communities or all of the above.

Indoor environmental quality: Refers to the conditions inside the building. It includes air quality, access to daylight and views, pleasant acoustic conditions and occupant control over lighting and thermal comfort. It may also include the functional aspects of space such as whether the layout provides easy access to tools and people when needed, and whether there is sufficient space for occupants.

Natural hazards: Naturally occurring hazards, including but not limited to flooding, drought, hail storms, earthquakes and fire (including wildfire).

Regulatory risks: Examples include, but are not limited to: mandatory energy/carbon disclosure schemes, changes in taxes e.g. carbon tax, extreme volatility in energy prices due to regulation, zoning.

Resilience: Preparedness of the built environment towards existing and future climate changes (i.e., the ability to absorb disturbances such as increased precipitation or flooding while maintaining its structure). This can be achieved by management policies, informational technologies, educating tenant, community, suppliers and physical measures at the asset level.

Risk assessment: Careful examination of the factors that could potentially adversely impact the value or longevity of a real estate asset. The results of the assessment assist in identifying measures that have to be implemented in order to prevent and mitigate the risks.

Socio-economic risks: Impact on social well-being, livelihoods and prosperity of local communities and individuals. Examples include: economic/political instability, vulnerability to pandemics and epidemics, crime and vandalism, and the displacement of people.

Transportation risks: Risks associated with transportation around the location of a building in relation to pedestrian, bicycle and mass-transit networks, in context of the existing infrastructure and amenities in the surrounding area.

Water efficiency: Refers to the conservative use of water resources through water-saving technologies to reduce consumption.

Water supply: Provision of surface water, groundwater, rainwater collected directly or stored by the organization, waste water from another organization, municipal water supplies or other water utilities, usually via a system of pumps and pipes.

Waste management: Issues associated with hazardous and non-hazardous waste generation, reuse, recycling, composting, recovery, incineration, landfill and on-site storage.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Evidence: Document upload is mandatory for this indicator. The evidence should sufficiently support all the items selected for this question.

The provided evidence should cover the following elements:

  1. Specific environmental and/or social risk assessment issues addressed in the entity’s due diligence process;
  2. Proof of standard implementation into the entity’s acquisitions process.

Examples of valid evidence may include: (1) a standard risk assessment template document that was completed by the entity during the acquisitions process, (2) proof of a risk assessment being performed during the reporting period or (3) standard requirements for performing environmental and/or social risk assessments within the entity’s acquisition process protocol.

Other: State the other risk factor assessed.

It is possible to report multiple other answers.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded to each selected checkbox option and are then aggregated to calculate the indicator’s final score.

Reporting multiple other answers will not impact scoring; reported answer options in this field are validated individually, but scores will not be aggregated.

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

The reported answer options are validated based on the provided evidence, and points are contingent upon validity of the supporting evidence.

References

World Economic Forum, Global Risks, 2014 Environment Agency, Groundwater protection: Principles and practice, 2013

World Health Organization

SASB-Real Estate Owners, Developers & Investment Trusts (March 2016): IF0402-05; IF0402-09; IF0402-14

RobecoSAM Corporate Sustainability Assessment 2017: 3.2.2 Risk Correlation

Recommendations of the Task Force on Climate-Related Financial Disclosures June 2017: Strategy A&B; Risk Management A&B

2 points , IM, E

Indicator aligned with PRI Reporting Framework 2018, Direct Property, PR 16.1

Intent

The intent of this indicator is to identify if the entity has performed environmental and/or social risk assessments on its standing investments over the last three years. Similar to RO3.1 above, sustainability risk assessments of standing investments demonstrate an ongoing commitment to ESG management, a focus on mitigating risks that may negatively impact returns and a forward-looking approach to the development of the portfolio.

Terminology

Biodiversity and habitat: Issues related to wildlife, endangered species, ecosystem services, habitat management, and relevant topics. Biodiversity refers to the variety of all plant and animal species. Habitat refers to the natural environment in which these plant and animal species live and function.

Building safety and materials: Assessment to identify potential hazards resulting, for example, from vulnerabilities caused by the construction materials used, major structural flaws or the presence of asbestos.

Climate change adaptation: Preparation for long-term change in climatic conditions or climate related events. Example of climate change adaptation measures can include, but are not limited to: building flood defenses, xeriscaping and using tree species resistant to storms and fires, adapting building codes to extreme weather events.

Contamination: Land and groundwater pollution which may require action to reduce risk to people or the environment. As an example, contamination can be assessed through a Phase I or II Environmental Site Assessment.

Due diligence process: The process through which a potential acquirer evaluates a target asset for an acquisition, contributing to well-informed investment decision-making.

Energy efficiency: Refers to products or systems using less energy to provide the same consumer benefit.

Energy supply: Availability of conventional power (generated by the combustion of fuels: coal, natural gas, oil) or renewable energy (e.g. sun, wind, water, organic plant and waste material).

Environmental risks: Impact on living and non-living natural systems, including land, air, water and ecosystems. This includes, but is not limited to biodiversity, transport and product and servicerelated impacts, as well as environmental compliance and expenditures.

GHG emissions: GHGs refers to the seven gases listed in the GHG Protocol Corporate Standard: carbon dioxide (CO2); methane (CH4); nitrous oxide (N2O); hydrofluorocarbons (HFCs); perfluorocarbons (PFCs); nitrogen trifluoride (NF3) and sulphur hexafluoride (SF6).

Health and well-being: “Health is a complete state of physical, mental and social well-being, not merely the absence of disease or infirmity”(WHO). Health & well-being is impacted by genetics and individual behavior as well as environmental conditions. Particularly relevant to GRESB stakeholders are the social determinants of health, which are the “conditions in which people are born, grow, work, live and age, and the wider set of forces and systems shaping the conditions of daily life.” These are the conditions that enable or discourage healthy living. This could include issues such as physical activity, healthy eating, equitable workplaces, maternity and paternity leave, access to healthcare, reduction in toxic exposures, etc.

A risk assessment on health and well-being might address only one or both of these topics, and could include assessments of risks associated with employees, customers, surrounding communities or all of the above.

Indoor environmental quality: Refers to the conditions inside the building. It includes air quality, access to daylight and views, pleasant acoustic conditions and occupant control over lighting and thermal comfort. It may also include the functional aspects of space such as whether the layout provides easy access to tools and people when needed, and whether there is sufficient space for occupants.

Natural hazards: Naturally occurring hazards, including but not limited to flooding, drought, hail storms, earthquakes and fire (including wildfire).

Regulatory risks: Examples include, but are not limited to: mandatory energy/carbon disclosure schemes, changes in taxes e.g. carbon tax, extreme volatility in energy prices due to regulation, zoning.

Resilience: Preparedness of the built environment towards existing and future climate changes (i.e., the ability to absorb disturbances such as increased precipitation or flooding while maintaining its structure). This can be achieved by management policies, informational technologies, educating tenant, community, suppliers and physical measures at the asset level.

Risk assessment: Careful examination of the factors that could potentially adversely impact the value or longevity of a real estate asset. The results of the assessment assist in identifying measures that have to be implemented in order to prevent and mitigate the risks.

Socio-economic risks: Impact on social well-being, livelihoods and prosperity of local communities and individuals. Examples include: economic/political instability, vulnerability to pandemics and epidemics, crime and vandalism, and the displacement of people.

Transportation risks: Risks associated with transportation around the location of a building in relation to pedestrian, bicycle and mass-transit networks, in context of the existing infrastructure and amenities in the surrounding area.

Water efficiency: Refers to the conservative use of water resources through water-saving technologies to reduce consumption.

Water supply: Provision of surface water, groundwater, rainwater collected directly or stored by the organization, waste water from another organization, municipal water supplies or other water utilities, usually via a system of pumps and pipes.

Waste management: Issues associated with hazardous and non-hazardous waste generation, reuse, recycling, composting, recovery, incineration, landfill and on-site storage.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Other: State the other risk factor assessed.

It is possible to report multiple other answers.

Percentage of portfolio covered: Fraction of the portfolio calculated by floor area for which risk assessments were performed during the last three years. The numerator is the floor area of the assets for which the applicable technical building assessment was performed. The denominator is the total floor area of the portfolio as reported in RC5.1.

Open text box: The content of this open text box is not used for scoring, but will be included in the Benchmark Report. Participate may use this open text box to communicate on

  1. Risk exposure. Describe the methodology used to identify the main risks to which the entity is exposed, as identified above.
  2. Level of implementation. Identify the parties included in the assessment, e.g. employees, business partners, suppliers, contractors and subcontractors and other third parties, etc.
  3. Risk mitigation. Describe the actions taken to mitigate the identified risks. The description can refer to actions taken to:
    • Mitigate the cause of the identified risks (e.g. policies for CO2 reduction to reduce pollution, and thus minimizing exposure to carbon taxes);
    • Mitigate the effects of the identified risks (e.g. policies for protection of the central plant against flooding risk);
  4. Follow-up procedure. Describe the procedure employed if the identified risks occur.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded to each selected option, weighted per percentage of portfolio covered, and are then aggregated to calculate the indicator’s final score.

Reporting multiple other answers will not impact scoring; reported answer options in this field are validated individually, but scores will not be aggregated.

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

The open text box is not scored and is for reporting purposes only.

References

ISO 31000:2009

World Economic Forum, Global Risks Report, 2017

Environment Agency, Groundwater protection: Principles and practice, 2013

SASB-Real Estate Owners, Developers & Investment Trusts (March 2016): IF0402-05; IF0402-09; IF0402-14

EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017: 5.8, H&S-Comp asset health and safety compliance

RobecoSAM Corporate Sustainability Assessment 2017: 3.2.2 Risk Correlation

World Health Organization

Recommendations of the Task Force on Climate Related Financial Disclosures June 2017: Strategy A&B; Risk Management A&B

4.5 points , IM, E

Indicator aligned with PRI Reporting Framework 2018, Direct Property, PR 16.1

Intent

The intent of this indicator is to examine the steps taken by the organization to understand the efficiency, water, waste and health & well-being improvement opportunities available to the entity.

Terminology

Energy efficiency: Refers to products or systems using less energy to provide the same consumer benefit.

Health and well-being: “Health is a complete state of physical, mental and social well-being, not merely the absence of disease or infirmity”(WHO). Health & well-being is impacted by genetics and individual behavior as well as environmental conditions. Particularly relevant to GRESB stakeholders are the social determinants of health, which are the “conditions in which people are born, grow, work, live and age, and the wider set of forces and systems shaping the conditions of daily life.” These are the conditions that enable or discourage healthy living. This could include issues such as physical activity, healthy eating, equitable workplaces, maternity and paternity leave, access to healthcare, reduction in toxic exposures, etc.

Technical building assessment: Formal documented assessment of a building undertaken by a person with technical expertise. Examples of persons with technical expertise can include, but are not limited to: building engineers and building surveyors. Examples of types of assessment can include, but are not limited to: assessments of the structure of the building and materials used, how the building is operated, and how the building is used by its occupants.

Water efficiency: Refers to the conservative use of water resources through water-saving technologies to reduce consumption.

Waste management: Issues associated with hazardous and non-hazardous waste generation, reuse, recycling, composting, recovery, incineration, landfill and on-site storage.

Requirements

Select yes, no or not applicable. If yes, also (1) select all applicable sub-options and (2) complete the percentages by floor area for the whole portfolio.

Percentage of portfolio covered: Fraction of the portfolio calculated by floor area for which technical building assessments were performed during the last three years. The numerator is the floor area of the assets for which the applicable technical building assessment was performed. The denominator is the total floor area of the portfolio as reported in RC5.1.

Evidence: Document upload or document name and date. The evidence should sufficiently support all the items selected for this question. In the absence of an upload, providing the document name AND date of publication is mandatory, and you may be asked to disclose the document to GRESB as part of the validation process.

The provided evidence should cover the following elements:

  1. Energy efficiency: a) the performance of technical building energy efficiency assessments during the past four years, and b) the scope of the energy assessment. An example of valid supporting evidence may be a technical building energy assessment report for an asset from the portfolio performed during the reporting period or no more than four years ago. Ideally, the document includes specifications on the following elements:
    • Asset characteristics and project description
    • Building envelope (insulation, fenestration)
    • Heating and cooling system
    • Ventilation system
    • Service water heating system
    • Automatic controls
    • Lighting system
    • Process loads
    • Energy saving recommendations
    • Example energy efficiency technical building assessment: Supporting documentation that demonstrates undertaking The Investor Confidence Project (ICP) Investor Ready Energy Efficiency™ (IREE™) Certification, which is an energy efficiency related technical building certification.

  2. Water efficiency, waste management, health & well-being: a) the performance of applicable technical building assessments for water, waste and/or health & well-being, b) the scope of the water, waste and/ or health and well-being assessment. An example of a valid supporting evidence may be a technical building assessment report for an asset from the portfolio performed during the reporting period or no more than four years ago.

Reporting period: Answers must refer to the reporting period identified in EC3, and the three years prior.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded based on (1) the selected assessment options, (2) the percentage portfolio covered for each assessment type and (3) the party who carried out the assessment(s) (in-house or external).

Energy has a maximum 2 points available, 1.5 for water, 0.5 for waste and 0.5 for health & well-being.

The reported answer options are validated based on the provided evidence, and points are contingent upon validity of the supporting evidence.

References

Investor Confidence Project (ICP) Investor Ready Energy Efficiency™ (IREE™)

SASB-Real Estate Owners, Developers & Investment Trusts (March 2016): IF0402-05

Recommendations of the Task Force on Climate-Related Financial Disclosures June 2017: Strategy A&B

3 points , IM, E

Indicator aligned with PRI Reporting Framework 2018, Direct Property, PR 16.1

Intent

The intent of this indicator is to improve environmental performance within a portfolio, focusing on opportunities to increase the energy efficiency of assets.

This indicator examines measures (or projects) undertaken to reduce the portfolio’s energy consumption. Usually, the implementation of these measures is the result of technical building assessments, which are focused on investigating the energy use and requirements of the building based on its characteristics and installed equipment.

Terminology

Building automation system upgrades/replacements: Refers to the computer-based centralized system installed in buildings that controls and monitors equipment such as ventilation, airconditioning, heating, lighting, alarms and communications.

Upgrades and replacements refers to the process of ensuring the building automation system is operating at full capacity, as to achieve optimal management of systems and increase energy efficiency.

Building energy management systems: Energy management software solutions, which include functionality to forecast and adjust energy demand in a building.

Installation of high-efficient equipment and electrical appliances: Specification and purchase of electrical equipment and appliances that minimize the building‘s energy needs. This includes, but it is not limited to: energy efficient lighting upgrades/replacements and HVAC system upgrades/replacements.

Installation of on-site renewable energy: Renewable energy produced on-site, to meet some or all of the building’s energy requirements.

Measure: The actual project or activity undertaken/implemented to improve energy efficiency as part of the selected category.

Occupier engagement/informational technologies: Communication and information technologies implemented to inform and engage with tenants in regards to their energy use.

Smart grid/smart building technologies: Computer-based control and automation of electricity network systems, to support and manage electricity demand in a sustainable, integrated manner.

System commissioning: The process of ensuring that systems are designed, installed, and functionally tested, and that they are capable of being operated and maintained to perform optimally.

Requirements

Select energy-efficiency categories and specify the measure(s) implemented in the portfolio. Either select from the list or select “other.” It is possible to select a category more than once.

Other: State the other energy-efficiency measure.

It is possible to report multiple other answers.

Open text box: The description should briefly explain the measure implemented and preferably include payback period, property type and scope of the project. Participants should clarify the possible link(s) to the entity's’ objectives (MA1) and targets (PI5). The project to implement the measure can be ongoing at the time you submit your GRESB Assessment.

Percentage of whole portfolio covered (during the last four years): The percentage of the entity’s portfolio for which the selected measure has been implemented during the last four years, including the reporting year. It includes measures implemented as part of the design and development of a new asset (if they occured within the past four years), regardless whether the asset was developed by the reporting entity itself or acquired, and measures implemented by the landlord and/or tenants during the operation. The implementation of the measure can be ongoing at the time you submit your GRESB Assessment.

Estimated savings and target ROI: Estimated savings and target ROIs are for reporting purposes only. Participants can use these fields to demonstrate the business case for implementing an efficiency measure. The “Estimated savings” and “Target ROI” fields are not mandatory. If the project is ongoing or is implemented in phases, include the estimated savings and target ROI of the whole project.

Reporting period: Answers must refer to the reporting period identified in EC3, and the three years prior.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded based on (1) validity of the reported measure(s), (2) the description of the measure and (3) the portfolio coverage of the measure (during the last four years).

Each measure can earn a maximum of 1.5 points, depending on the portfolio coverage during the last four years.

It is not required to select all categories in order to receive the maximum score for this indicator.

The open text box underneath the table is not scored and is for reporting purpose only.

References

ISO 50001:2011 Energy Management Systems

LEED BD+C: Core and Shell, v4, Optimize Energy Performance LEED O+M: Existing Buildings, v4, Alternative Transportation

EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017: 7.9, Narrative on performance

SASB-Real Estate Owners, Developers & Investment Trusts (March 2016): IF0402-05

Recommendations of the Task Force on Climate-Related Financial Disclosures June 2017: Strategy A&B

2.5 points , IM, E

Indicator aligned with PRI Reporting Framework 2018, Direct Property, PR 16.1

Intent

This indicator intends to review the steps taken by the entity to reduce water consumption across the portfolio.

Along with energy performance, water consumption is a key indicator of environmental sustainability performance in real estate portfolios.

Terminology

Cooling tower water management: A cooling tower is a heat rejection device which extracts waste heat to the atmosphere through the cooling of a water stream to a lower temperature. Reduction of potable water consumption for cooling towers (or evaporative condenser equipment) can be achieved through effective water management, including conducting a water analysis to measure the concentration of at least five control parameters in order to optimize the cooling tower cycles and/or use of non-potable makeup water for a minimum of 20% of the makeup water.

Drip/smart irrigation: Drip irrigation systems save water by irrigating, fertilizing and aerating trees, shrubs, plants and bushes directly at the roots. Smart irrigation systems save water by adjusting the watering schedule and amount of water used for irrigation based on a variety of factors and inputs, including weather, plant species and soil type.

Drought tolerant/native landscaping: Adapted or indigenous vegetation that has evolved to the geography, hydrology and climate of a region requiring minimal or no supplemental watering beyond natural rainfall.

Dry fixtures: Fixtures that do not require the use of water, such as composting toilet systems and waterless urinals.

Grey water: Wastewater generated from hand basins, showers and other water-using devices and equipment.

High-efficiency fixtures: Appliances and plumbing equipment that conserve water without compromising performance (also known as “ultra-low-flow” fixtures).

Leak detection system: Systems that detect water leaks. Examples can include, but are not limited to: condensate water overflow, chiller water leaks, plumbing line cracks, heating/cooling piping leaks and outside seepage.

Measure: The actual project or activity undertaken/implemented to improve energy efficiency as part of the selected category.

Metering of water subsystems: Installing sub-meters to measure the water consumption of applicable subsystems, such as irrigation, indoor plumbing fixtures, domestic hot water, reclaimed water or other process water uses, which supports effective water management and identifying opportunities for additional water savings.

On-site wastewater treatment: Process of water decontamination as a consequence of any anthropogenic, industrial or commercial use, before the water is released again into the environment or is re-used.

Stormwater: Water that collects during precipitation, which can be stored on-site for eventual reuse for non-potable applications. Examples can include, but are not limited to: landscape irrigation and/or flush fixtures.

Requirements

Select water-efficiency categories and specify the measure(s) implemented in the portfolio. Either select from the list or select “other.” It is possible to select a category more than once.

Other: State the other water-efficiency measure.

It is possible to report multiple other answers.

Open text box: The description should briefly explain the measure implemented and preferably include payback period, property type and scope of the project. Participants should clarify the possible link(s) to the entity's’ objectives (MA1) and targets (PI5). The project to implement the measure can be ongoing at the time you submit your GRESB Assessment.

Percentage of whole portfolio covered (during the last four years): The percentage of the entity’s portfolio for which the selected measure has been implemented during the last four years, including the reporting year. It includes measures implemented as part of the design and development of a new asset (if they occured within the past four years), regardless whether the asset was developed by the reporting entity itself or acquired, and measures implemented by the landlord and/or tenants during the operation. The implementation of the measure can be ongoing at the time you submit your GRESB Assessment.

Estimated savings and target ROI: Estimated savings and target ROIs are for reporting purposes only. Participants can use these fields to demonstrate the business case for implementing an efficiency measure. The “Estimated savings” and “Target ROI” fields are not mandatory. If the project is ongoing or is implemented in phases, include the estimated savings and target ROI of the whole project.

Reporting period: Answers must refer to the reporting period identified in EC3, and the three years prior.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded based on (1) validity of the reported measure(s), (2) the description of the measure and (3) the portfolio coverage of the measure (during the last four years).

Each measure can earn a maximum of 1.25 points, depending on the portfolio coverage during the last four years.

It is not required to select all categories in order to receive the maximum score for this indicator.

The open text box underneath the table is not scored and is for reporting purpose only.

References

LEED BD+C: Core and Shell; and LEED O+M: Existing Buildings, v4, Water Efficiency, Indoor water use reduction

EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017: 7.9, Narrative on performance

SASB-Real Estate Owners, Developers & Investment Trusts (March 2016): IF0402-09

Recommendations of the Task Force on Climate-Related Financial Disclosures June 2017: Strategy A&B

1 point , IM, E

Indicator aligned with PRI Reporting Framework 2018, Direct Property, PR 16.1

Intent

This indicator intends to review the steps undertaken by the entity to reduce its waste production/generation, and to obtain a better optimize disposal methods. Along with energy performance and water consumption, waste management is a key indicator of environmental sustainability performance across real estate portfolios.

Terminology

Composting landscape and/or food waste: Composting is the controlled decomposition of organic material which produces useful soil amendment products. Engage in landscape and/or food waste composting either on-site or by contracting with a composting service provider.

Recycling program: A program for materials that can be locally recycled and contracted with a recycling service provider. Provide appropriately sized recycling collection and storage areas within the entity’s real estate holdings to enable occupants to sort, collect and divert materials from landfill.

Measure: The actual project or activity undertaken/implemented to improve energy efficiency as part of the selected category.

Solid waste management: Hazardous and non-hazardous waste including reuse, recycling, composting, recovery, incineration, landfill, and on-site storage.

Ongoing waste performance monitoring: Track and measure ongoing waste volumes generated on a minimum quarterly basis, by either weight or volume, to help identify diversion and recycling opportunities within the organization. Conduct a minimum annual review to evaluate performance.

Waste stream audit: A formal process used to quantify the type and amount of waste being generated, by weight or volume, to help identify effective waste reduction, separation and recycling opportunities.

Requirements

Select waste management categories and specify the measure(s) implemented in the portfolio. Either select from the list or select “other.” It is possible to select a category more than once.

Other: State the other waste management measure.

It is possible to report multiple other answers.

Open text box: The description should briefly explain the measure implemented and preferably include payback period, property type and scope of the project. Participants should clarify the possible link(s) to the entity's’ objectives (MA1) and targets (PI5). The project to implement the measure can be ongoing at the time you submit your GRESB Assessment.

Percentage of whole portfolio covered (during the last four years): The percentage of the entity’s portfolio for which the selected measure has been implemented during the last four years, including the reporting year. It includes measures implemented as part of the design and development of a new asset (if they occured within the past four years), regardless whether the asset was developed by the reporting entity itself or acquired, and measures implemented by the landlord and/or tenants during the operation. The implementation of the measure can be ongoing at the time you submit your GRESB Assessment.

Estimated savings and target ROI: Estimated savings and target ROIs are for reporting purposes only. Participants can use these fields to demonstrate the business case for implementing an efficiency measure. The “Estimated savings” and “Target ROI” fields are not mandatory. If the project is ongoing or is implemented in phases, include the estimated savings and target ROI of the whole project.

Reporting period: Answers must refer to the reporting period identified in EC3, and the three years prior.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded based on (1) validity of the reported measure(s), (2) the description of the measure and (3) the portfolio coverage of the measure (during the last four years).

Each measure can earn a maximum of 0.5 points, depending on the portfolio coverage during the last four years.

It is not required to select all categories in order to receive the maximum score for this indicator.

The open text box underneath the table is not scored and is for reporting purpose only.

References

LEED BD+C: Core and Shell; and LEED O+M: Existing Buildings, v4, Materials and resources

EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017: 7.9, Narrative on performance

Recommendations of the Task Force on Climate-Related Financial Disclosures June 2017: Strategy A&B

Monitoring & EMS

Real estate consumes significant amounts of energy and water, produces waste streams and generates GHG emissions, all of which have substantial environmental impact. Measuring and monitoring of consumption and generation is an important basis for reducing impact and improving environmental performance of buildings. This Aspect describes the processes the entity uses to support ESG implementation and performance monitoring.

Environmental Management Systems

2018 Indicator

3 points , MP, G

Intent

The intent of this indicator is to assess the entity’s use of a systematic process to manage environmental impacts, risks and opportunities.

An Environmental Management System (EMS) is an internal framework that structures all procedures, projects and tactics into a cohesive program which aligns the sustainability efforts at entity or organization level. An EMS can assist organizations in managing and improving their environmental performance, complying with environmental laws and regulations, identifying financial savings through more efficient operating practices, and improving the standing of the business with staff, client companies, partner organizations and other stakeholders.

Use of an aligned or certified EMS framework provides assurance to both the business and external stakeholders that environmental impacts are measured and acted upon using a recognized and proven methodology. Periodic reviews of the EMS ensure its continuing suitability and effectiveness for the organization.

Terminology

Alignment: To agree and match with a recognized sustainability standard (either voluntary or mandatory).

Certified: Third-party recognition of meeting the requirements of a recognized standard.

Environmental Management System (EMS): A framework for managing an organization’s environmental impact based on its sustainability and related objectives. An EMS provides a practical framework for the assessment of environmental impacts, establishment of impact reduction targets, and the development of plans to achieve targeted reductions. An EMS enables an organization to take a structured approach to planning and implementing environmental protection measures.

An effective EMS is analogous to a financial management system that monitors expenditure and income to support analysis of financial performance. An EMS can cover a wide range of environmental topics, including, but not limited to: energy, GHG emissions, water, waste, transportation, climate change, resilience, risks, and materials. It can also refer to a wide variety of internal procedures, targets, persons responsible for implementing these procedures and working towards achieving the organization’s objectives. In summary, an EMS is used to formalize the strategic approach of the organization towards sustainability. It outlines the structure used to monitor and manage environmental topics.

An important distinction needs to be made between an EMS and an EnMS. Unlike an EMS, an EnMS (Energy Management System) only covers energy, energy efficiency and conservation, energy management and performance. The most commonly used standard for implementing an EnMS is ISO 50001. An EnMS does not qualify as a valid answer for the purposes of this indicator.

ISO 14001 Alignment: ISO 14001 defines a complete EMS to include four stages:

  1. Plan
    • Define the scope of the organization’s environmental policy (the most important areas of impact and relationship with primary stakeholders)
    • Define and maintain environmental objectives and targets (short-term and long-term)
    • Define the materiality matrix, based on priority sustainability issues
    • Identify relevant legal requirements and environmental legislation
    • Define emergency procedures
  2. Do
    • Ensure the implementation of the action plan established in stage one and the maintenance of the systems in place
    • Assign responsibility for the overall development and maintenance of the system
    • Offer training and/or support to the people in charge to ensure conformity with the policy
  3. Check
    • Establish appropriate communication channels with the people in charge
    • Monitor and document progress
    • Ensure compliance with applicable legal requirements
    • Identify and correct non-conformity
  4. Act
    • Schedule periodic management reviews on results and next steps
    • Evaluate performance against targets
    • Determine corrective and preventative actions
    • Provide feedback and suggestions for improvement
    • Prepare and/or update procedures and supporting documentation

The process above provides an example of an EMS outline with the stages and elements included. The EMS, and therefore the supporting evidence, does not necessarily have to be structured according the ISO recommendations, nor does it have to include all suggested elements for each stage. While adherence to ISO 14001 is not required, the reported EMS must support the purpose identified in ISO 14001 and provide comparable functionality.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Complete the additional information requested, and provide supporting evidence.

Aligned: Report the recognized standard used for the alignment of the EMS.

Externally certified: Provide the name of the organization responsible for certifying the EMS using a recognized standard, as well as the name of the recognized standard applied.

GRESB requires certification to be undertaken by a third party and not by the participant. EMS certification may only be obtained for one (or more) of the main standards/schemes, for example ISO14001.

Note that aligning or certifying individual sections of the EMS does not comply with the requirements of this indicator and does not constitute a valid answer.

Evidence: Document upload is mandatory for this indicator. The evidence should sufficiently support all the items selected for this question.

To qualify as valid, the evidence provided must include:

  1. A high level outline or diagram of the implemented EMS.
  2. The applicability of the EMS at the entity level.
  3. The stages, elements and or processes currently covered by the EMS.
  4. Evidence of implementation of the EMS into the entity or organization’s operations.

A fully accepted evidence must cover at least one elements from each of the four Plan - Do - Act - Check stages.

Energy Management Systems (EnMS): An EnMS only covers energy issues and is not considered an EMS, and as such not accepted as evidence for this indicator.

If the EMS is aligned with a standard, the evidence must include the name the standard used for alignment and define the degree of alignment with the standard. Elements of the EMS that align with the standard can be summarized, called out, highlighted, or shown in a diagram.

If the EMS is externally certified by and independent third party, the evidence should include signed proof of the certification according to the standard, which must be named within the evidence, as well as contact information of the independent third party involved and the date of the most recent certification.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity and/or organization level.

Scoring

Points are awarded based on (1) the existence of an EMS, (2) alignment or external certification with valid name of the organization that certified the EMS, if applicable. Points are contingent upon validity of the supporting evidence.

Full points will be awarded only if the evidence covers at least one element from each of the four stages outlined above, or is considered to comprehensively cover comparable stages, with proof of implementation.

References

LEED BD+C: Core and Shell, v4, Sustainable Sites; Water efficiency; Energy & Atmosphere; Material & resources; and Indoor Environmental Quality BREEAM In-Use International, Asset Performance; and Building Management

ISO 14001:2015 Environmental management systems – Requirements with guidance for use

ISO 14004:2015 Environmental management systems – general guidelines on principles, systems and support techniques

Data Management Systems

2018 Indicator

4 points , IM, E

Intent

The intent of this indicator is to describe the scope of the entity’s activities to apply information technology to collect and analyze ESG performance indicators.

Monitoring performance data (energy and water consumption, GHG emissions and waste) is an important part of managing sustainability issues. Data management systems enable organizations to monitor performance in an efficient and effective way, for example, by integrating building management systems for individual locations across the portfolio.

Terminology

Building safety: Environmental issues with the potential to create or exacerbate risks to human safety, such as structural failure.

Data management system: A software system that enables an organization to collect, monitor and analyze performance data (energy, GHG emissions, water, waste, building certifications and ratings, etc.) across individual buildings in the portfolio, and to benchmark building performance within or outside the portfolio, or against industry standards. A data management system improves data quality and provides organizations with the tools to identify opportunities for improvement, and to identify and monitor consumption efficiency measures.

A data management system may be part of an EMS; however, it has a distinct structure and function. A data management system is primarily focused on quantitative information and works as a centralized data collection and analysis tool.

Energy consumption: Fuel consumption from renewable and non-renewable energy sources.

Environmental risks: Impact on living and non-living natural systems, including land, air, water and ecosystems. This includes, but is not limited to biodiversity, transport and product and servicerelated impacts, as well as environmental compliance and expenditures.

GHG emissions/management: GHG management refers to the management of GHG emissions. GHGs refers to the seven gases listed in the GHG Protocol Corporate Standard: carbon dioxide (CO2); methane (CH4); nitrous oxide (N2O); hydrofluorocarbons (HFCs); perfluorocarbons (PFCs); nitrogen trifluoride (NF3) and sulphur hexafluoride (SF6).

Indoor environmental quality: Refers to the conditions inside the building. It includes air quality, access to daylight and views, pleasant acoustic conditions and occupant control over lighting and thermal comfort. It may also include the functional aspects of space such as whether the layout provides easy access to tools and people when needed, and whether there is sufficient space for occupants.

Resilience: Preparedness of the built environment towards existing and future climate changes (i.e., the ability to absorb disturbances such as increased precipitation or flooding while maintaining its structure). This can be achieved by management policies, informational technologies, educating tenant, community, suppliers and physical measures at the asset level.

Water: Examples may include, but are not limited to: water consumption, water supply characteristics, and wastewater/effluent.

Waste streams/management: Examples may include, but are not limited to: waste generation by stream and diversion rates.

Requirements

Select yes or no. If yes, also select how the system was developed and complete the percentage of the portfolio covered by the system for each aspect.

Other: State the name of the other performance indicator included in the data management system.

Percentage of portfolio covered: The percentages should reflect the proportion of the whole portfolio floor area that is covered by the data management system. Coverage is calculated based on floor area, with the denominator being the floor area of the whole portfolio. If the floor area covered changed during the reporting period (for example because of a change in the number of assets) use the floor area percentage applicable at the end of the reporting period. Select one of the four categories provided in the dropdown menu.

Name of the organization: Provide the full name of the organization. You may be asked for additional information about the organization(s). It is possible to report on multiple organizations.

Name of the system: If the organization is using a external system, the name of the system must be provided. The name of the external system will be checked during validation.

If you use more than one data management system to track different elements, report on the total percentage of portfolio covered per applicable performance indicator (by one or more data management systems).

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity and/or organization level.

Scoring

Points are awarded based on (1) the type of system, and (2) selected performance indicators. Percentage of portfolio coverage is used for reporting purpose only and will not be scored.

Monitoring Consumption

2018 Indicator

3 points , IM, E

Intent

Organizations use a variety of methods to monitor energy consumption. This indicator is intended to identify which data collection methods are used and for which fraction of the portfolio. The nature of monitoring is an indicator of the availability of data to support the achievement of sustainability targets and goals.

Terminology

Automatic meter readings: Meter readings taken automatically at predefined frequencies by building management systems or smart metering systems.

Based on invoices: Consumption monitoring based on invoices provided by the utility provider.

Manual-visual readings: Consumption monitoring based on physical reading of meters.

Provided by the tenant: The tenant purchases energy and provides the landlord with information on consumption data.

Requirements

Select yes, no or not applicable. If yes, also (1) select all applicable sub-options and (2) complete the percentages by floor area for the whole portfolio.

Overlap of monitoring methods: If multiple monitoring methods are used to monitor the energy consumption of a space, participants are required to report on the corresponding floor area only once, using the most robust monitoring method, according the following order: automatic meter readings, invoices, other options.

Percentage portfolio coverage: Percentages should represent the proportion of the whole portfolio floor area that is monitored. Coverage is calculated based on floor area, with the denominator being the floor area of the whole portfolio, and the numerator being the floor area for which data is monitored and available. If the floor area covered changed during the reporting period (for example because of a change in the number of assets) use the floor area percentage applicable at the end of the reporting period.

Note: The sum of percentages of the whole portfolio covered by each monitoring type should equal the percentage of whole portfolio covered by floor area.

Other: State the type of the other monitoring method use to monitor energy consumption.

It is possible to report multiple other answers.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded based on the selected monitoring types and their corresponding portfolio coverage percentages. The percentage of portfolio covered by each type of monitoring is scored, while the percentage of whole portfolio covered by floor area is not scored but for reporting purposes only.

Examples

In a 50,000 m2 industrial portfolio, just 30,000 m2 has energy supply. The reporting entity/landlord only receives the invoices for the common areas (2,000 m2), and receives the data from a selection of tenants (18,000 m2).

Percentage of whole portfolio covered by floor area: (2,000+18,000)/30,000 = 66.7%

Based on invoices: Percentage of the whole portfolio covered by floor area: 2,000/30,000 = 6.7%

Provided by the tenant: Percentage of the whole portfolio covered by floor area: 18,000/ 30,000 = 60%

References

LEED BD+C: Core and Shell, v4, Building-level Energy Metering; and Advanced Energy Metering

GRI Sustainability Reporting (2016): 302-1 Energy consumption within the organization; 302-2, Energy consumption outside the organization

RobecoSAM Corporate Sustainability Assessment 2017: 4.2.4, Energy

2 points , IM, E

Intent

Organizations use a variety of methods to monitor water consumption. This indicator is intended to identify which data collection methods are used and for which fraction of the portfolio. The nature of monitoring is an indicator of the availability of data to support the achievement of sustainability targets and goals.

Terminology

Automatic meter readings: Meter readings taken automatically at predefined frequencies by building management systems or smart metering systems.

Based on invoices: Consumption monitoring based on invoices provided by the utility provider.

Manual-visual readings: Consumption monitoring based on physical reading of meters.

Provided by the tenant: The tenant purchases energy and provides the landlord with information on consumption data.

Requirements

Select yes, no or not applicable. If yes, also (1) select all applicable sub-options and (2) complete the percentages by floor area for the whole portfolio.

Overlap of monitoring methods: If multiple monitoring methods are used to monitor the water consumption of a space, participants are required to report on the corresponding floor area only once, using the most robust monitoring method, according the following order: automatic meter readings, invoices, other options.

Percentage portfolio coverage: Percentages should represent the proportion of the whole portfolio floor area that is monitored. Coverage is calculated based on floor area, with the denominator being the floor area of the whole portfolio, and the numerator being the floor area for which data is monitored and available. If the floor area covered changed during the reporting period (for example because of a change in the number of assets) use the floor area percentage applicable at the end of the reporting period.

Note: The sum of percentages of the whole portfolio covered by each monitoring type should equal the percentage of whole portfolio covered by floor area.

Other: State the type of the other monitoring method use to monitor water consumption.

It is possible to report multiple other answers.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded based on the selected monitoring types and their corresponding portfolio coverage percentages. The percentage of portfolio covered by each type of monitoring is scored, while the percentage of whole portfolio covered by floor area is not scored but for reporting purposes only.

Examples

In a 50,000 m2 industrial portfolio, just 30,000 m2 has water supply. The reporting entity/landlord only receives the invoices for the common areas (2,000 m2), and receives the data from a selection of tenants (18,000 m2).

Percentage of whole portfolio covered by floor area: (2,000+18,000)/30,000 = 66.7%

Base on invoices: Percentage of the whole portfolio covered by floor area: 2,000/30,000 = 6.7%

Provided by the tenant: Percentage of the whole portfolio covered by floor area: 18,000/ 30,000 = 60%

References

LEED BD+C: Core and Shell, v4, Building-level Water Metering; and Water

RobecoSAM Corporate Sustainability Assessment 2017: 4.2.7, Water

Not scored , IM, E

Intent

Organizations use a variety of methods to monitor their waste production and diversion rates. This indicator is intended to identify which data collection methods are used and for which fraction of the portfolio. The nature of monitoring is an indicator of the availability of data to support the achievement of waste reduction and diversion targets.

Terminology

Internal tracking: Internally developed waste monitoring methods (scales, sensors, etc.).

Provided by the hauler: Data directly provided to the entity from the waste hauling company.

Provided by the tenant: The tenant purchases energy and provides the landlord with information on consumption data.

Requirements

Select yes, no or not applicable. If yes, also (1) select all applicable sub-options and (2) complete the percentages by floor area for the whole portfolio.

Overlap of monitoring methods: If multiple monitoring methods are used to monitor the waste production of a space, participants are required to report on the corresponding floor area only once, using the most robust monitoring method.

Percentage portfolio coverage: Percentages should represent the proportion of the whole portfolio floor area that is monitored. Coverage is calculated based on floor area, with the denominator being the floor area of the whole portfolio, and the numerator being the floor area for which data is monitored and available. If the floor area covered changed during the reporting period (for example because of a change in the number of assets) use the floor area percentage applicable at the end of the reporting period.

Note: The sum of percentages of the whole portfolio covered by each monitoring type should equal the percentage of whole portfolio covered by floor area.

Open text box: In 2018, participants may calculate the portfolio coverage using their own methodology (i.e., by floor area, number of assets, etc.), but it is mandatory to use the open text box to explain the methodology used, including:

  • The calculation methodology, including the unit of measurement/applied denominator
  • Description of limitations, assumptions made in the calculation

Other: State the type of the other monitoring method use to monitor waste production.

It is possible to report multiple other answers.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

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

References

RobecoSAM Corporate Sustainability Assessment 2017: 4.2.5, Waste

GRI Sustainability Reporting (2016): 306-2, Waste by type and disposal method

Performance Indicators

The Performance Indicators Aspect of the GRESB Real Estate Assessment collects performance data on energy and water consumption, GHG emissions and waste. Participants can report either portfolio-level data or asset-level data.

PI1.1, PI2.1 and PI3.1: Floor area type is identified in RC5.1

The Floor area type used for reporting is identified in RC5.1 and should be used consistently throughout the Assessment.

PI1.1, PI2.1 and PI3.1: Like-for-Like Floor Area field

The like-for-like portfolio should only include areas for which comparable consumption data is available for 2017 and 2018. E.g., this should not include any assets that were acquired or disposed during these reporting years, nor include areas for which data coverage increased or decreased.

This like-for-like floor area field enables GRESB Investor Members to understand what proportion of their portfolio like-for-like consumption reductions are based on. The change permits GRESB to calculate intensity metrics, which facilitates the identification of additional outliers.

PI2.1: New unscored fields for GHG emissions relating to Outdoor / Exterior spaces have been introduced in 2019 covering Scope 1, Scope 2 and Scope 3.

A new GHG emissions classification system for PI2.1 is introduced for the 2018 Assessment. Participants are required to indicate if their Scope 2 emissions have been calculated using a location or market-based method.

Support with asset-level data collection

GRESB has developed a number of tools to assist participants with the collection and aggregation of asset-level data that is required to complete certain aspects of the Assessment. Property companies and funds are encouraged to use the asset level tools to streamline data flows, and to increase data quality. The asset-level data provided to GRESB is strictly confidential and will only be used for aggregation to portfolio level. No asset level information will be disclosed to participants’ investors.

GRESB provides multiple tools to facilitate a smooth asset-level reporting process, including GRESB Asset Spreadsheet and Automated Data Feed (ADF) via Real Estate Data Partners. A new feature implemented in 2019 allows participants to download their asset level information in Excel format from the Asset Level Portal providing more flexibility for edits and maintaining an offline record of all edits made in the Portal.

More information on asset-level reporting can be found in our Asset Portal Guide.

Before you start with the Performance Indicators Aspect, note that:

Energy Consumption Data

2018 Indicator

Not scored

Requirements

Indicate whether the energy consumption data of this property type in PI1.1 is reported at the asset level.

Make sure you insert data in the correct section of the table, check the definition of 'Managed assets' and 'Indirectly Managed assets'. Only use Whole Building if no break-down of data is possible between Base Building and Tenant Space.

Additionally, if consumption cannot be separated between Common Areas and Shared Services/Central Plant, provide both in Shared Services/Central Plant.

Terminology

Common area: Areas shared with other building occupants, including, but not limited to: entrance areas, corridors, lifts, staircases, waste storage stores, communal kitchen and breakout facilities.

Tenant space: Lettable floor area (both vacant and let/leased areas) that is or can be occupied by tenants.

Purchased by landlord: Energy purchased by the landlord, but consumed by the tenant. This can include energy purchased by the landlord but used for vacant space.

Purchased by tenant: Energy purchased by the tenant. Typically this is data that is not within the participant's immediate control, but GRESB encourages efforts to collect it.

Whole building: Energy used by tenants and base building services to lettable/leasable and common spaces. This should include all energy supplied to the building for the operation of the building and the tenant space. For reporting to GRESB, use this section to report consumption data in the case no separate data for Common areas and Tenant space is available.

Managed asset: This definition of Managed assets and the definition of Indirectly Managed assets are solely based on the landlord/tenant relationship. Assets or buildings for which the landlord is determined to have 'operational control' where operational control is defined as having the ability to introduce and implement operating and/or environmental policies and measures. In case both the landlord and tenant have the authority to introduce and implement any or all of the policies mentioned above, the asset or building should be reported as a Managed asset. Where a single tenant has the sole authority to introduce and implement operating and/or environmental policies and measures, the tenant should be assumed to have operational control, so it should be considered to be an Indirectly Managed asset.

Indirectly managed assets: This definition and the definition of Managed assets are solely based on the landlord/tenant relationship. Assets or buildings for which the tenant is determined to have 'operational control' where operational control is defined as having the ability to introduce and implement operating and/ or environmental policies and measures. In case both the landlord and tenant have the authority to introduce and implement any or all of the policies and measures mentioned above, the asset or building should be reported as a Managed asset. Where a single tenant has the sole authority to introduce and implement operating and/or environmental policies and measures, the tenant should be assumed to have operational control, so it should be considered to be an Indirectly Managed asset.

12 points , IM, E

Intent

Energy consumption and the corresponding cost represent a significant financial outlay and accounts for a large share of a building’s environmental footprint. Data measurement and consistent reporting of energy consumption help organizations to increase the energy efficiency of their portfolio, thus reducing economic and environmental impacts associated with fossil fuel energy use.

Absolute Consumption (MWh, m3) data is requested for reporting purposes only, and the quantity of use is therefore not scored. However, outlier checks are performed to ensure data quality (see the Introduction section for more information on the identification and elimination of outliers). Investors use this data to calculate the total energy consumption for their real estate investments. Data Coverage for Managed and Indirectly Managed assets, as well as for Base building, Tenant space and Whole building, is scored, as this reflects the efforts taken to measure and monitor consumption data.

GRESB calculates Like-for-Like Change, used for scoring purposes, based on the data submitted for 2017 and 2018 by property type for both Managed and Indirectly Managed assets.

Terminology

See definitions in Appendix 7a.

Requirements

Complete the applicable rows and fields in the table for that property type, based on whole portfolio data (including both Managed and Indirectly Managed assets).

1. For Managed Assets, determine if consumption data is collected for a combination of Base Building AND Tenant space, OR Whole building.

Combination of Base building and Tenant space

  • Base building: Energy is supplied by central building services to common areas and possibly to lettable/leasable areas.
  • Tenant space: The lettable floor area, both the vacant and let/leased areas

Whole Building

  • Whole building: Energy is used by tenants and base building services in both lettable/leasable and common spaces, but is not available or metered separately. This should include all energy supplied to the building. Use this section to report consumption data when separate data for Common areas and Tenant space is not available.

1.1. For data collected at Base building level, allocate consumption data to the Common areas, Shared Service/Central Plant or Outdoor/Exterior areas/Parking.

Common Areas (row 1-3): Areas shared with other building occupants, including entrance areas, corridors, lifts, staircases,waste storage stores, communal kitchen, breakout facilities, etc.

Shared Service/Central Plant (row 4-6): Shared Services/Central Plant is a central source providing energy for the whole building, including common areas and shared services for tenants. If consumption cannot be separated between common areas and shared services, provide both here.

Outdoor/Exterior Areas/Parking (row 7-8): If energy consumption includes Outdoor/Exterior Areas/Parking and is measured separately, submit the data in Outdoor/Exterior Areas/Parking (rows 7-8). Otherwise it can simply be included in Base Building (or Whole Building).

1.2. For data collected at Tenant space level, determine if the data is Purchased by the landlord and/or Purchased by the tenant.

Purchased by landlord (row 10-12): The landlord holds the energy contract with a utility company. Energy is provided to and paid for by the tenant via service charges. This can include energy purchased by the landlord but used for vacant space.

Purchased by tenant (row 13-15): The tenant holds the energy contract with a utility company. Energy is therefore directly purchased by the tenant. Typically this is data that is not within the participant’s immediate control, although GRESB encourages efforts to collect it.

Note: If the participant is not able to collect the consumption data at the tenant areas, the Data Coverage should be 0 m2/ft2 and the Maximum Potential Coverage should reflect the total tenant floor area where the energy is consumed.

2. For Indirectly Managed Assets, allocate consumption data to Tenant space and/or Outdoor/Exterior areas/Parking.

Tenant space (row 22-24): The definition is solely based on the landlord/tenant relationship. For Indirectly Managed Assets or buildings, the single tenant is determined to have ‘operational control,’ where energy is fully taken care of by the tenants.

Outdoor/Exterior areas/Parking (row 25-26): If energy consumption includes Outdoor/Exterior Areas/Parking and is measured separately, submit the data in Outdoor/Exterior Areas/Parking (rows 25-26).

Note: If the participant is not able to collect the consumption data at the tenant areas, the Data Coverage should be 0 m2/ft2 and the Maximum Potential Coverage should reflect the total tenant floor area where the energy source is consumed.

3. Complete the applicable rows with Absolute and Like-for-Like consumption data, based on whole portfolio data for each property type.

Absolute Consumption: All available energy consumption data (in MWh) for both 2017 and 2018 should be included and completed in the applicable fields (column A and B). Make sure to complete the rows determined in the previous steps.

  • Estimates: When landlord-obtained annual consumption data for a particular energy source is partially unavailable or unreliable for an asset, estimations may be necessary. Estimation allows completed annual data to be calculated for an asset where data is partially missing or unreliable. GRESB allows participants to use estimated data when reporting on energy consumption if this is aligned with one of the predefined methodologies (see Appendix 7b) and not used as a substitute to gather complete and accurate data.

Site or Source energy: Site energy data should be submitted in all applicable data fields. Energy data does not have to be converted back to Source energy data.

The Data Coverage and Maximum Potential Coverage are based on absolute consumption data submitted.

Like-for-Like Consumption: Energy consumption data reported on a like-for-like comparison (in MWh) should exclude assets which have been acquired, disposed, under development, have been largely refurbished over the past 24 months, or for which the data availability is not consistent for both reported years. This data is used to calculate Like-for-Like Change, which is the change in energy consumption for the part of the of the portfolio that has remained same year-over-year and/or for which comparable consumption data has been available for both years. All applicable energy consumption data for both 2017 and 2018 should be included and completed in the appropriate fields (column E, F and G). Make sure to complete the rows determined in the previous steps.

4. Complete Data Coverage for Absolute Consumption and report Maximum Potential Coverage of the portfolio for this property type.

Data Coverage calculations: GRESB calculates Data Coverage based on floor area for which consumption data is available (column C: Data Coverage) and on the total floor area for which consumption data could have been collected, which is the total supply area (column D: Maximum Potential Coverage). Data Coverage is calculated separately for Base Building, Tenant Space and Whole Building data within Managed assets as well as for Tenant space/building within Indirectly Managed assets.

  • Data Coverage: The part of the portfolio for which data is available, per space and fuel type, as determined in the previous steps. The floor area reported in these fields (column C) should reflect the floor area of the asset/portfolio for which Absolute Consumption data is collected from and reported on in columns A and B.
  • Note: When there is no consumption data available for one of the energy sources, but an energy supply exists, Data Coverage should be 0 m2/ft2.

  • Maximum Potential Data Coverage: The floor area reported in these fields (column D) should reflect the total floor area of the asset/portfolio of the area for which there is energy supply in the building.
    • Example: Maximum Potential Data Coverage of Common Areas (row 1-3) should reflect the sum of the total floor area of all common areas within the portfolio by property type, for which there is energy supply.
    • Example: for Indirectly Managed assets, Maximum Potential Coverage should reflect the percentage of the floor area reported for that particular property type in the reporting characteristics (RC5.1), assuming there is supply in all assets/building for the applicable energy type.

Floor area type: Participants should consistently apply the floor area type (gross floor area or lettable floor area), as selected in RC5.1, for each completed row. Within the row, m2/ft2 reported in Data Coverage and Maximum Potential Coverage and the selected floor area must be consistent as chosen in RC3. It is recommended to report on floor areas using the International Property Measurement Standard (IPMS).

Note: If the floor area for common areas is unknown, report an estimated floor area as a proportion of lettable floor area. Report the details of the estimate in the open text box below the Energy Consumption Table.

5. Complete Data Coverage for Like-for-like Consumption of the portfolio for this property type.

When analyzing the Assessment results, institutional investors would like to be able to put the LFL data into the context of their investment portfolio. This value does not have any impact on scoring, but it will help GRESB refine additional data checks on the data provided and it will help investors with their interpretation of portfolio performance. Make sure that the like-for-like consumption data is submitted before you explain the portfolio outlier checks, in case the GRESB Portal detects outliers in the data.

6. Average annual vacancy: Report the weighted average annual vacancy in the portfolio of each property type for 2017 and 2018, based on floor area. This information is used for reporting purposes and may clarify the Like-for-Like Change figures.

Open text box: The content of this open text box is not used for scoring, but will be included in the Benchmark Report. Participate may use this open text box to communicate on any assumptions made in reporting and possible exclusions from the like-for-like portfolio, etc.

Outliers: The consumption data is validated as part of the All Participant Outlier Check. If the corresponding consumption is abnormal relative to all reported data for the particular property type. Participants should be sure to explain the identified outliers before submitting the Assessment. The explanation provided for the outliers will be validated and will affect the inclusion of the data points scoring and analysis. Reasonable and clear explanations prevent the exclusion of data points identified as outliers. Outlier explanations can pertain to:

  • Implemented efficiency measures
  • Weather conditions
  • Tenant behavior
  • Other __________
The outlier validation guidance can be found in Appendix 7c.

Scoring

Scoring for this indicator is based on:

  1. Data Coverage = 8p
  2. Asset level energy data reporting = 1.5p
  3. Like-for-Like data availability = 0.5p
  4. Like-for-Like performance improvement = 2p

Data coverage percentages values are benchmarked against peers in the benchmarking comparison group. Benchmarks are constructed within property type and account for whether the data was “Landlord obtained” or “Tenant obtained”, per below definitions:

  • Landlord obtained data:
    • Managed Assets: Base Building, Tenant Space purchased by Landlord, and Whole Building.
  • Tenant obtained data:
    • Managed Assets: Tenant space purchased by tenant;
    • Indirectly Managed Assets: Whole building.

The benchmark attempts to further refine benchmarking groups to the regional level, but will use a global benchmarking group in case of an insufficient number of regional peers (minimum of 12). If the GRESB reporting universe does not contain a sufficient number of peers to construct a global benchmark (minimum of 12), the benchmark will use a static model with cut off points at: 25%, 50% and 75% data coverage.

The scoring methodology for data coverage values: Within each benchmarking group the relevant data coverage values are split into quartiles. Each respondent is then given 25%, 50%, 75% or 100% of the maximum available points depending on whether their data coverage value is in the 1st, 2nd, 3rd or 4th quartile of the benchmark. The resulting scores are then aggregated to a single score using a weighted mean with floor areas as weights. The maximum available points is defined as:

  • Base building: 40%*8p = 3.2p
  • Tenant spaces: 60%*8p = 4.8p, divided between:
    • Landlord obtained energy - weighted based on floor area Tenant Space, Energy Purchased by Landlord out of total Tenant floor area
    • Tenant obtained energy - weighted based on floor area Tenant Space, Energy Purchased by Tenant out of total Tenant floor area
  • Whole building: 8p

The scoring methodology for Like-for-Like data: Like-for-Like performance is scored using a methodology and approach similar to the scoring of data coverage, except for that reporting a lower value (for example a negative one) which ends up in a lower quartile will always result in a higher or equal score.

The open text box is not scored and is for reporting purposes only.

This indicator is reported and scored separately for each property type. The total score of the indicator is calculated by taking a weighted average of the scores per property type weighted by the GAV percentage allocated to each property type in RC5.1

References

EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017: 5.2, Coverage

SASB-Real Estate Owners, Developers & Investment Trusts, March 2016: IF0402-01; IF0402-02; IF0402-03

RobecoSAM Corporate Sustainability Assessment, 2017: 4.2.4, Energy

Recommendations of the Task Force on Climate-Related Financial Disclosures, June 2017: Metrics and Targets- A

1.5 points , IM, E

Intent

Energy use intensities are key metrics to measure energy performance of buildings. These metrics are building-agnostic and can be used for tracking overall portfolio performance over time. GRESB acknowledges that there are regional and property type variations in how intensities are calculated. Therefore, GRESB asks participants to calculate intensities using their own calculation method.

Terminology

See definitions in Appendix 7a.

Requirements

Select yes or no per property type. If yes, complete available data in the table and report energy use intensities based on whole portfolio (Managed and Indirectly Managed assets).

Participants have the option to select a baseline year. This can be any year from 2002 onwards. Complete all the fields and be consistent with the unit of measurement used.

Participants should select the elements for which intensities are normalized (i.e. included in the intensity calculation). Floor area is not considered a normalization factor, but the denominator by default.

Note: In the case the intensities are calculated by a third party tool/methodology, make sure to select the normalization factors applied by the tool/methodology and specify the tool/methodology. For example: NABERS. The energy consumption figures are adjusted/normalized to account for area, climate, hours of occupancy and equipment density.

Examples

Units of measurement/applied denominators can differ, examples are: m2/ft2, workstations (Office), visitors per annum (Retail), number of guest-nights (Hotel), number of households (Residential).

Scoring

Scoring of intensity data input is based on:

  • Data reported, yes or no.
  • If yes, the number of normalization factors applied.

Percentage of portfolio covered is used for reporting purposes only and is not included in scoring.

This indicator is reported and scored separately for each property type. The total score of the indicator is calculated by taking a weighted average of the scores per property type weighted by the GAV percentage allocated to each property type in RC5.1

References

EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017: 5.6, Normalisation; Energy intensity

GRI Sustainability Reporting Standards, 2016: 302-3, Energy intensity

RobecoSAM Corporate Sustainability Assessment, 2017: 4.2.4, Energy

Recommendations of the Task Force on Climate-Related Financial Disclosures, June 2017: Metrics and Targets- A

3 points , IM, E

Intent

The use of renewable energy reduces economic and environmental impacts associated with fossil fuel energy use. The intent of this indicator is to determine the entity’s use of renewable energy sources.

Terminology

See definitions in Appendix 7a.

Requirements

Select yes or no per property type. If you select yes, complete the table and report absolute renewable energy generation and consumption based on the whole portfolio (Managed and Indirectly Managed assets). Leave fields for which you do not have data blank. If no data is available or no renewable data is used, select no.

To be able to use this data for your GHG emissions calculation, you should break down on-site renewable energy into:

  • Generated and consumed on-site; and
  • Generated on-site and exported.

Off-site renewable energy (generated off-site or purchased from third party) refers to what is consumed in the real estate portfolio.

Note:

  • You can include REC’s (renewable energy certificates) and/or PPA (power purchase agreement) in your reporting on renewable energy in PI1.3, Row 32: Off-site renewable energy (generated off-site or purchased from third party). However, RECs cannot be considered a source of renewable energy and as a way to offset the portfolio’s carbon emission at the same time. You should therefore not include REC’s in your reporting on GHG Offsets in PI2.1, or Row 42: GHG Offsets purchased if these have been reported in PI1.3.
  • GRESB does not include Carbon offsets (e.g. certificates) as Renewable Energy. Carbon offsets can be specified separately in PI2.1, Row 42: GHG Offsets purchased and NOT be included as renewable energy in PI1.3

GRESB automatically calculates total renewable energy. This is the sum of renewable energy generated on-site, (both consumed on-site and exported), plus renewable energy generated off-site or purchased from a utility provider or other third party. Make sure you use the correct measurement units: MWh, rather than kWh.

Percentage renewable energy: This refers to the percentage of the whole portfolio’s total energy use that is sourced from renewable energy (consumed and/or generated). This should be calculated based on (a) the total amount of renewable energy and (consumed and/or generated) (b) total energy consumption of whole portfolio of this property type. To calculate the relative use of renewable energy within the portfolio, you must ensure that the coverage figure is aligned with the Data Coverage provided in table PI1.1, column C.

This indicator tracks the amount of renewable energy generated or purchased from external sources. Participants should not use this indicator to reflect the energy mix associated with grid intensity factors.

Percentage renewable energy = (Total renewable energy(consumed and/or generated)) / (Total energy consumption of whole portfolio of this property type) x 100

Scoring

The scoring of this indicator is based on: (1)On-site renewable energy = 2p, (2)off-site renewable energy = 1p, and (3)Performance (% renewable energy) = 1p. The maximum points available is capped at 3p.

This indicator is reported and scored separately for each property type. The total score of the indicator is calculated by taking a weighted average of the scores per property type weighted by the GAV percentage allocated to each property type in RC5.1

References

GHG Protocol

CDP, Q8 Emissions data

LEED O+M: Existing Buildings, v4, Energy & Atmosphere: Renewable Energy and Carbon Offsets

EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017: 5.2, Coverage; Elec-Abs

SASB-Real Estate Owners, Developers & Investment Trusts, March 2016: IF0402-01; IF0402-02; IF0402-03

Recommendations of the Task Force on Climate-Related Financial Disclosures, June 2017: Metrics and Targets- A

1 point , MP, E

Intent

Third-party review on ESG data provides investors and participants with confidence regarding the integrity and reliability of the reported information. This indicator is NOT asked per property type but inquires about review energy data reported across the whole portfolio.

This indicator differs from PD5.2, by addressing the review of data provided in PI1.1, PI1.2 and PI1.3. The review covered in PD5.2, can differ in both granularity (level of detail) and scope (see Requirement section for details).

Terminology

See definitions in Appendix 7a.

Requirements

Select yes, no or not applicable. If yes, state whether the energy consumption data has been checked, verified or assured (select one option; the most detailed level of scrutiny to which the data was subject). Select the assurance/verification standard (if applicable) from the dropdown menu (see Accepted assurance schemes in the Appendices); Any "Other" standard selected from the Scheme name dropdown menu will be subject to validation.

Name of the organization: Provide the full name of the organization. You may be asked for additional information about the organization(s). It is possible to report on multiple organizations.

Evidence: Document upload is mandatory. Evidence should include:

  1. Prove of the existence of the third-party energy consumption data review. A clear indication that the reviewed data reflects the data reported in PI1.1, PI1.2, PI1.3.
  2. A description of the type of third-party review (checked, verified, or assured), the used assurance standard (when applicable), and the name of the third-party that conducted the review.
  3. Proof that the energy consumption data review was performed for the underlying assets of the reporting entity.

Note: This indicator differs from PD5.2 in both granularity (level of detail) and scope:

  • If data granularity required in PI1.1, PI1.2 and PI1.3 is higher than in PD5.2, participants can not assume that data review documented in PD5.2 also applies to PI1.1, PI1.2 and PI1.3.
  • However, if data granularity provided in PI1.1, PI1.2 and PI1.3 is lower than PD5.2, then participants can assume that independent review documented in PD5.2 implicitly covers these 3 indicators.
In the latter case, responses will only be considered valid if reporting boundaries for both sets of indicators are equivalent. Any difference in reporting boundaries needs to be thoroughly supported by evidence and clearly explained by participants.

Scoring

Scoring is based on (1) the type of third-party review, (2) the validity of the name of the organization reported, and (3) the used verification/assurance standard, when applicable.

The reported answer options are validated based on the provided evidence, and points are contingent upon validity of the supporting evidence.

References

GRESB’s accepts verification and assurance standards based upon their alignment with CDP's (Carbon Disclosure Project) Verification Guidanceaccepted verification standards.

EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017: 5.4, Third party assurance

Not scored

Intent

Greenhouse gas (GHG) accounting has developed significantly in recent years. Many countries have introduced mandatory GHG emissions reporting, in addition to organizations often setting their own voluntary GHG emission targets. Evaluating emissions within participants’ portfolios has become the norm, and organizations are increasingly looking at emissions throughout their value chains.

Terminology

Location-based method: A method used to quantify Scope 2 GHG emissions based on average emissions intensity of grids on which the energy consumption occurs (using mostly grid-average emission factor data). Emission factors are often defined using geographic locations. These can be based on local, subnational, or national boundaries.

Market-based method: A method to quantify Scope 2 GHG emissions based on emissions by the generators from which the reporter contractually purchases electricity. The market-based method reflects the GHG emissions associated with the choices a consumer makes regarding its electricity supplier or product (or the lack of choice).

Equity share approach: Scope 1 and Scope 2 GHG emissions are accounted from operations according to share of ownership. The equity share reflects economic interest, which is the extent of rights a company has to the risks and rewards flowing from an operation. For example, an entity will account for the emissions of a JV asset by weighing the emissions by percentage of ownership.

Operational control approach Under the operational control approach, a company accounts for 100 percent of the Scope 1 and Scope 2 GHG emissions from operations over which it has control. A company has operational control over an operation if the former or one of its subsidiaries has the full authority to introduce and implement its operating policies at the operation. It does not account for GHG emissions from operations in which it owns an interest but has no control.

Financial control approach The company has financial control over the operation if the former has the ability to direct the financial and operating policies of the latter with a view to gaining economic benefits from its activities.

Requirements

Select yes or no for each property type included in the entity’s portfolio. If no data is available, select ‘no’. If yes is selected, you will be asked to answer PI2.1, PI2.2 per property type.

Indicate the methodology used in calculating Scope 2 GHG emissions for this property type. This is not scored in 2018 but for reporting purpose only.

  • Location/Market-based method: Select the method used to calculate Scope 2 GHG emissions. GRESB recognizes that with the 2015 update of the GHG Protocol companies are recommended to report separately on both location-based and market-based Scope 2 GHG emissions. As PI2.1 has only one field to report Scope 2 emissions, GRESB recommends participants to use the location-based method over the market-based method in their reporting.
  • Participants should only select both checkboxes if they cannot report on either the location or market-based method separately.
  • Equity share/Operational/Financial control approach: Participants should indicate which approach they used for establishing their Scope 1 and Scope 2 GHG emissions inventory reporting boundary. GRESB recommends participants to use the "Operational Control Approach", which is globally the most widely adopted.

Note that the type of approach selected together with the leasing structure of assets will determine what type of emissions are reported under Scope 1, Scope 2 and Scope 3 emissions.

  • Operational (GRESB recommended) or /Financial control approach
    • Emissions from landlord controlled areas are considered Scope 1 and Scope 2.
    • Emissions from Tenant controlled areas and from Indirectly Managed Assets are considered Scope 3.

    If emissions are not submetered to the tenants, participants should report them as Scope 1 or Scope 2.

  • Equity share approach
    • Emissions from the entire portfolio, including tenant emissions, are attributed to Scope I and Scope 2.
    • Emissions from JV are attributed to the entity per percentage ownership of the asset.

Participants always have the opportunity to report additional Scope 3 emissions "("other than tenant emissions")"" in the open text box underneath the table in PI2.1. However, emissions associated with a company’s supply chain should not be associated with any Floor Area.

References

GHG Protocol Scope II Guidance, 2015

Realpac, Who’s Carbon is it?, 2010

3.5 points , IM, E

Intent

Greenhouse gas (GHG) accounting has developed significantly in recent years. Many countries have introduced mandatory GHG emissions reporting, in addition to organizations often setting their own voluntary GHG emission targets. Evaluating emissions within participants’ portfolios has become the norm, and organizations are increasingly looking at emissions throughout their value chains.

Terminology

See definitions in Appendix 7a.

Requirements

Complete the applicable rows and fields in the table for that property type, based on whole portfolio data (combine Managed and Indirectly Managed assets).

Fields to complete: Complete all the fields of the table for which you have available data, making sure that you use the correct measurement unit (metric tonnes).

The reporting rules for data coverage and Like-for-Like outlined in PI 1.1 are also applicable to PI 2.1.

Outliers: The consumption data is validated as part of the All Participant Outlier Check. If the corresponding consumption is abnormal relative to all reported data for the particular property type. Participants should be sure to explain the identified outliers before submitting the Assessment. The explanation provided for the outliers will be validated and will affect the inclusion of the data points scoring and analysis. Reasonable and clear explanations prevent the exclusion of data points identified as outliers. Outlier explanations can pertain to:

  • Implemented efficiency measures
  • Weather conditions
  • Tenant behavior
  • Other __________
The outlier validation guidance can be found in Appendix 7c.

Open text box: The content of this open text box is not used for scoring, but will be included in the Benchmark Report. Participate may use this open text box to communicate on GHG emissions calculation methodology, assumption, boundaries, etc.
Note: Participants always have the opportunity to report additional Scope 3 emissions, other than tenant emissions, in the open text box. However, these emissions associated with a company’s supply chain, should not be associated with any Floor Area.

Scoring

The scoring for this indicator is based on:

  1. Data Coverage for Scope 1,Scope 2, and Scope 3 (excluding emissions associated with Outdoor/ Exterior areas/ Parking) GHG emissions = 2p
  2. Asset level GHG emissions data reporting = 0.5p
  3. Like-for-Like performance improvement = 1p

Data Coverage for the total Scope 1,Scope 2 and Scope 3 (excluding emissions associated with Outdoor/ Exterior areas/ Parking) emissions is benchmarked and scored. Benchmarks are constructed within property type, and attempts to further refine benchmarking groups to the regional level, but will use a global benchmarking group in case of an insufficient number of regional peers (minimum of 12). If the GRESB reporting universe does not contain a sufficient number of peers to construct a global benchmark (minimum of 12), the benchmark will use a static model with cutoff points at: 25%, 50% and 75% data coverage.

The scoring methodology for data coverage values: Within each benchmarking group the relevant data coverage values are split into quartiles. Each respondent is then given 25%, 50%, 75% or 100% of the maximum of 2 points for data coverage, depending on whether their coverage value is in the 1st, 2nd, 3rd or 4th quartile of the benchmark. The resulting scores are then aggregated to a single score using a weighted mean with floor areas as weights.

The scoring methodology for Like-for-Like data: Like-for-Like performance is scored using a methodology and approach similar to the scoring of data coverage (1, 0.5 or 0.25 points, respectively), except for that reporting a lower value (for example a negative one) which ends up in a lower quartile will always result in a higher or equal score.

The open text box is not scored and is for reporting purposes only.

This indicator is reported and scored separately for each property type. The total score of the indicator is calculated by taking a weighted average of the scores per property type weighted by the GAV percentage allocated to each property type in RC5.1

References

Reporting of GHG emissions is based on: GHG protocol, GRI GRESS (G4-EN15, G4-EN16, G4-EN17,), ISO 14064 and CDP.

For further guidance on the individual components of GHG emissions, refer to: EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017; INREV Sustainability Reporting Recommendations, 3.5-3.7; International Property Measurement Standard (IPMS); EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017: 5.2, Coverage; RobecoSAM Corporate Sustainability Assessment, 2017: 4.2.1, Direct greenhouse gas emissions; Recommendations of the Task Force on Climate-Related Financial Disclosures June 2017: Metrics and Targets- B

0.75 points , IM, E

Intent

GHG intensities provide an important measure of the environmental performance of an asset. These metrics can be used for tracking asset performance over time. GRESB acknowledges that there are regional and property type variations in how intensities are calculated. Therefore, GRESB asks participants to calculate intensities using their own calculation method.

Terminology

See definitions in Appendix 7a.

Requirements

Select yes or no per property type. If you select yes, complete available data in the table and report GHG emissions intensities based on Whole Portfolio (Managed and Indirectly Managed assets).

Participants have the option to select a baseline year. This can be any year from 2002 onwards. Complete all the fields, and be consistent in the unit of measurement used.

Participants should select the elements for which intensities are normalized (i.e. included in the intensity calculation). Floor area is not considered a normalization factor, but the denominator by default.

Note: In the case the intensities are calculated by a third party tool/methodology, make sure to select the normalization factors applied by the tool/methodology. Example: NABERS - the GHG emission data is adjusted to account for area, climate, hours of occupancy and equipment density.

Examples

Units of measurement/applied denominators can differ, examples are: m2/ft2, workstations (Office), visitors per annum (Retail), number of guest-nights (Hotel), number of households (Residential).

Scoring

Scoring of intensity data input is based on:

  • Data reported, yes or no.
  • If yes, the number of normalization factors applied.

Percentage of portfolio covered is used for reporting purposes only and is not included in scoring.

This indicator is reported and scored separately for each property type. The total score of the indicator is calculated by taking a weighted average of the scores per property type weighted by the GAV percentage allocated to each property type in RC5.1

References

EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017: 5.6, Normalisation

CDP, CC12 Emissions Performance

GRI Sustainability Reporting Standards, 2016: 305-4, GHG emissions intensity

GRI GRESS (G4-EN18)

Recommendations of the Task Force on Climate-Related Financial Disclosures, June 2017: Metrics and Targets- B

0.75 points , MP, E

Intent

Third-party review on ESG data provide investors and participants with confidence regarding the integrity and reliability of the reported information. This indicator is NOT asked per property type but inquires about the review e of GHG emissions data across the whole portfolio.

Terminology

See definitions in Appendix 7a.

Requirements

Select yes, no or not applicable. If yes, state whether the GHG emissions data has been checked, verified or assured (select one option; the most detailed level of scrutiny to which the data was subject). Select the assurance/verification standard (if applicable) from the dropdown menu (see Accepted assurance schemes in the Appendices); Any "Other" standard selected from the Scheme name dropdown menu will be subject to validation.

Name of the organization: Provide the full name of the organization. You may be asked for additional information about the organization(s). It is possible to report on multiple organizations.

Evidence: Document upload is mandatory. Evidence should include:

  1. Prove of the existence of the third-party GHG emissions data review. A clear indication that the reviewed data reflects the data reported in PI1.1, PI1.2, PI1.3.
  2. A description of the type of third-party review (checked, verified, or assured), the used assurance standard (when applicable), and the name of the third-party that conducted the review.
  3. Proof that the GHG emissions data review was performed for the underlying assets of the reporting entity.

Note:This indicator differs from PD5.2 in both granularity (level of detail) and scope:

  • If data granularity required in PI2.1 and PI2.2 is higher than in PD5.2, participants can not assume that data review documented in PD5.2 also applies to PI2.1 and PI2.2.
  • However, if data granularity provided in PI2.1 and PI2.2 is lower than PD5.2, then participants can assume that independent review documented in PD5.2 implicitly covers these 2 indicators.
In the latter case, responses will only be considered valid if reporting boundaries for both sets of indicators are equivalent. Any difference in reporting boundaries needs to be thoroughly supported by evidence and clearly explained by participants.

Scoring

Scoring is based on (1) the type of third-party review, (2) the validity of the name of the organization reported, and (3) the used verification/assurance standard, when applicable.

The reported answer options are validated based on the provided evidence, and points are contingent upon validity of the supporting evidence.

References

GRESB’s accepted assurance and verification standards based upon their aligned with CDP's Verification Guidance

RobecoSAM Corporate Sustainability Assessment 2017: 4.2.1, Direct greenhouse gas emissions

EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017: 5.4 Third party assurance

Recommendations of the Task Force on Climate-Related Financial Disclosures, June 2017: Metrics and Targets- B

Not scored

Requirements

Select yes or no for each property type included in the portfolio. If no data is available, select ‘no.’ If yes is selected, you will be asked to answer PI3.1, PI3.2 and PI3.3 per property type.

3.5 points , IM, E

Intent

Consistent collection of water consumption data provides property companies and fund managers the information to monitor their environmental impact, reduce the burden on potable water consumption and wastewater systems, assess exposure to risks of disruptions in water supplies and reduce water expenditures.

The quantity of water consumed is used for reporting purposes only, while the availability (“coverage”) of water consumption data is scored. Investors use absolute data to calculate the total water consumption for their real estate investments. Data Coverage, for both Managed and Indirectly Managed assets, as well as Base building, Tenant space and Whole building, is used for scoring purposes, since this reflects the efforts taken to measure and monitor consumption data.

GRESB calculates Like-for-Like Change, used for scoring purposes, based on the data submitted for 2017 and 2018 per property type, for both Managed and Indirectly Managed assets.

Terminology

See definitions in Appendix 7a.

Requirements

If you select yes, also complete the applicable rows and fields in the table for that property type, based on whole portfolio data (Managed and Indirectly Managed assets).

The reporting rules for data coverage and Like-for-Like outlined in PI 1.1 are also applicable to PI 3.1.

Outliers: The consumption data is validated as part of the All Participant Outlier Check. If the corresponding consumption is abnormal relative to all reported data for the particular property type. Participants should be sure to explain the identified outliers before submitting the Assessment. The explanation provided for the outliers will be validated and will affect the inclusion of the data points scoring and analysis. Reasonable and clear explanations prevent the exclusion of data points identified as outliers. Outlier explanations can pertain to:

  • Implemented efficiency measures
  • Weather conditions
  • Tenant behavior
  • Other __________
The outlier validation guidance can be found in Appendix 7c.

Open text box: The content of this open text box is not used for scoring, but will be included in the Benchmark Report. Participate may use this open text box to communicate on assumptions, exclusion of Like-for-Like, etc.

Scoring

Scoring of this indicator is based on:

  1. Data Coverage = 2p
  2. Asset level water data reporting = 0.5p
  3. Like-for-Like performance improvement = 1p

Data coverage percentages values are benchmarked against peers in the benchmarking group. Benchmarks are constructed within property type and account for whether the data was “Landlord obtained” or “Tenant obtained”, per below definitions:

  • Landlord obtained data:
    • Managed Assets: Base Building, Tenant Space purchased by Landlord, and Whole Building.
  • Tenant obtained data:
    • Managed Assets: Tenant space purchased by tenant;
    • Indirectly Managed Assets: Whole building.

The benchmark attempts to further refine benchmarking groups to the regional level, but will use a global benchmarking group in case of an insufficient number of regional peers (minimum of 12). If the GRESB reporting universe does not contain a sufficient number of peers to construct a global benchmark (minimum of 12), the benchmark will use a static model with cut off points at: 25%, 50% and 75% data coverage.

The following steps are taken to assign the maximum score for data coverage values:

The scoring methodology for data coverage values: Within each benchmarking group the relevant data coverage values are split into quartiles. Each respondent is then given 25%, 50%, 75% or 100% of the maximum available points depending on whether their data coverage value is in the 1st, 2nd, 3rd or 4th quartile. The resulting scores are then aggregated to a single score using a weighted mean with floor areas as weights. The maximum available points is defined as:

  • Base building: 40%*2p = 0.8p
  • Tenant spaces: 60%*2p = 1.2p, divided between:
    • Landlord obtained energy - weighted based on floor area Tenant Space, Energy Purchased by Landlord out of total Tenant floor area
    • Tenant obtained energy - weighted based on floor area Tenant Space, Energy Purchased by Tenant out of total Tenant floor area
  • Whole building: 2p

The scoring methodology for Like-for-Like data: Like-for-Like performance is scored using a methodology and approach similar to the scoring of data coverage (1, 0.5 or 0.25 points, respectively), except for that reporting a lower value (for example a negative one) which ends up in a lower quartile will always result in a higher or equal score.

The open text box is not scored and is for reporting purposes only.

This indicator is reported and scored separately for each property type. The total score of the indicator is calculated by taking a weighted average of the scores per property type weighted by the GAV percentage allocated to each property type in RC5.1

References

EPRA Best Practices Recommendations on Sustainability Reporting 3rd version, September 2017: 5.2, Coverage

INREV Sustainability Reporting Recommendations, 3.8-3.9

LEED 2009 for Existing Buildings, WE Prerequisite 1

International Property Measurement Standard (IPMS).

SASB-Real Estate Owners, Developers & Investment Trusts, March 2016: IF0402-06; IF0402-07

0.75 points , IM, E

Intent

Water use intensities provide an important measure of the environmental performance of an asset. These metrics can be used to track asset performance over time. Since GRESB acknowledges that there are broad regional and property type variations in how intensities are calculated. GRESB asks participants to calculate intensities using their own calculation method.

Terminology

See definitions in Appendix 7a.

Requirements

Select yes or no per property type. If you select yes, complete the table and report water use intensities based on Whole Portfolio (Managed and Indirectly Managed assets).

Participants have the option to select a baseline year. This can be any year from 2002 onwards. Complete all the fields, and be consistent in the unit of measurement used.

Participants should select the elements for which intensities are normalized (i.e. included in the intensity calculation). Floor area is not considered a normalization factor, but the denominator by default.

Note: In the case the intensities are calculated by a third party tool/methodology, make sure to select the normalization factors applied by the tool/methodology.

Examples

Units of measurement/applied denominators can differ, examples are: m2/ft2, workstations (Office), visitors per annum (Retail), number of guest-nights (Hotel), number of households (Residential).

Scoring

Scoring of intensity data input is based on:

  • Data reported, yes or no.
  • If yes, the number of normalization factors applied.

Percentage of portfolio covered is used for reporting purposes only and is not included in scoring.

This indicator is reported and scored separately for each property type. The total score of the indicator is calculated by taking a weighted average of the scores per property type weighted by the GAV percentage allocated to each property type in RC5.1

References

EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017: 5.6, Normalisation

INREV Sustainability Reporting Recommendations, 3.8-3.9

0.5 points , IM, E

Intent

Water scarcity is increasingly becoming a global issue. The reuse and recycling of water is important as it reduces economic and environmental impacts associated with water consumption. Water recycling refers to reusing treated wastewater for beneficial purposes such as industrial processes, toilet flushing and replenishing ground water basins. Water is sometimes recycled and reused on-site; for example, when an industrial facility recycles water used for cooling processes.

Terminology

See definitions in Appendix 7a.

Requirements

Select yes or no per property type. If yes, complete the table and report absolute reused and/or recycled water based on whole portfolio (Managed and Indirectly Managed assets). If no data is available or no water is reused and/or recycled, select no. Leave fields for which you do not have data blank.

GRESB automatically calculates total reused and recycled water. This is the sum of reused water on-site, plus on-site captured water or water, which is extracted on-site.

Make sure you use the correct measurement units (m3).

Percentage reused and recycled water: The percentage of the whole portfolio’s total water use that is comprised of reused and recycled water. This should be calculated based on (a) the total amount of reused and recycled water and (b) total water consumption of whole portfolio. To be able to calculate the relative use of water reuse and recycling within the portfolio, you must ensure that the coverage figure is aligned with the Data Coverage provided in table PI3.1, column C.

Scoring

The scoring of this indicator is based on: (1)On-site water reuse and recycling, and (2)Performance (percentage reused and recycled water).

This indicator is reported and scored separately for each property type. The total score of the indicator is calculated by taking a weighted average of the scores per property type weighted by the GAV percentage allocated to each property type in RC5.1

References

GRI Sustainability Reporting Standards (2016): 303-3, Water recycled and reused

0.75 points , MP, E

Intent

Third-party review on ESG data provide investors and participants with confidence regarding the integrity and reliability of the reported information. This indicator is NOT asked per property type but inquires about review, of water consumption data across the whole portfolio.

Terminology

See definitions in Appendix 7a.

Requirements

Select yes, no or not applicable. If yes, state whether the water consumption data has been checked, verified or assured (select one option; the most detailed level of scrutiny to which the data was subject). Select the assurance/verification standard (if applicable) from the dropdown menu (see Accepted assurance schemes in the Appendices); Any "Other" standard selected from the Scheme name dropdown menu will be subject to validation.

Name of the organization: Provide the full name of the organization. You may be asked for additional information about the organization(s). It is possible to report on multiple organizations.

Evidence: Document upload is mandatory. Evidence should include:

  1. Prove of the existence of the third-party water consumption data review. A clear indication that the reviewed data reflects the data reported in PI3.1, PI3.2, PI3.3.
  2. A description of the type of third-party review (checked, verified, or assured), the used assurance standard (when applicable), and the name of the third-party that conducted the review.
  3. Proof that the water consumption data review was performed for the underlying assets of the reporting entity.

Note:This indicator differs from PD5.2 in both granularity (level of detail) and scope:

  • If data granularity required in PI3.1, PI3.2 and PI3.3 is higher than in PD5.2, participants can not assume that data review documented in PD5.2 also applies to PI3.1, PI3.2 and PI3.3.
  • However, if data granularity provided in PI3.1, PI3.2 and PI3.3 is lower than PD5.2, then participants can assume that independent review documented in PD5.2 implicitly covers these 3 indicators.
In the latter case, responses will only be considered valid if reporting boundaries for both sets of indicators are equivalent. Any difference in reporting boundaries needs to be thoroughly supported by evidence and clearly explained by participants.

Scoring

Scoring is based on (1) the type of third-party review, (2) the validity of the name of the organization reported, and (3) the used assurance standard, when applicable.

The reported answer options are validated based on the provided evidence, and points are contingent upon validity of the supporting evidence.

References

GRESB’s accepted assurance and verification standards based upon their alignment with (CDP's Verification Guidance).

EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017:5.4, Third party assurance

RobecoSAM Corporate Sustainability Assessment 2017: 4.2.7, Water

Not scored

Requirements

Select yes or no for each property type included in the entity’s portfolio. If no data is available, select ‘no’. If yes is selected, you will be asked to answer PI4.1 per property type.

3.25 points , IM, E

Intent

Consistent collection of waste data gives property companies and funds the information they need to monitor their environmental impact, assess their process efficiency and set targets to reduce the amount of waste produced.

Information on a portfolio’s produced hazardous and nonhazardous waste, together with disposal destinations, are valuable insights for participants to manage environmental impacts and to discover unnecessary financial burdens.

Terminology

See definitions in Appendix 7a.

Requirements

If you select yes, complete the tables for that property type, based on whole portfolio data (including both Managed and Indirectly Managed assets). Complete all the rows and fields of the table for which you have available data, making sure you use the correct measurement units (for waste weight this is metric tonnes).

1. Complete the applicable rows with waste data, based on whole portfolio data for this property type.

Absolute Measurement: This is requested only for reporting purposes, investors use this data to calculate the total waste produced on-site at their real estate investments. All available waste data for both 2017 and 2018 should be included and completed in the applicable fields (column A and B).

Percentage portfolio covered: This should be calculated based on waste data availability within the applicable reporting years (2017 and 2018). Floor area for which no waste data is available should be excluded from the total portfolio floor area of which waste is collected to derive the numerator. The denominator should be the total floor area for which waste is collected, regardless of data availability.

2. Determine the proportion of waste by disposal route, (i.e., the method by which waste is treated or disposed as a percentage of the total waste by weight during both reporting years 2017 and 2018).

Landfill: Site for the disposal of waste materials by burial and is the oldest form of waste treatment.

Incineration: Waste treatment process that involves the combustion of organic substances contained in waste materials.

Diverted (total): Waste diversion is the process of diverting waste from landfills and/or incineration.

  • Diverted, Waste to Energy: Diverting waste through the process of generating energy in the form of electricity and/or heat.
  • Diverted, Recycling: Diverting waste through the process of changing waste materials into new products or objects. This disposal method prevents the waste of potentially useful material, alleviates the consumption of fresh raw materials, reduces energy usage, air pollution (from incineration) and water pollution (from landfilling) by reducing the need for ‘conventional’ waste disposal. Recycling also produces lower greenhouse gas emissions as compared to plastic production.
  • Diverted, Other: Other methods to divert waste.

Outliers: The consumption data is validated as part of the All Participant Outlier Check. If the corresponding consumption is abnormal relative to all reported data for the particular property type. Participants should be sure to explain the identified outliers before submitting the Assessment. The explanation provided for the outliers will be validated and will affect the inclusion of the data points scoring and analysis. Reasonable and clear explanations prevent the exclusion of data points identified as outliers. Outlier explanations can pertain to:

  • Implemented efficiency measures
  • Weather conditions
  • Tenant behavior
  • Other __________
The outlier validation guidance can be found in Appendix 7c.

Open text box: The content of this open text box is not used for scoring, but will be included in the Benchmark Report. Participate may use this open text box to communicate on any assumptions made in reporting.

Scoring

Scoring for this indicator is based on:

  1. Data Coverage = 1.5p
  2. Asset level waste data reporting = 0.25p
  3. Proportion of waste by disposal route = 1.5p

Data coverage percentages values are benchmarked against peers in the benchmarking comparison group. Benchmarks are constructed within property type and management style (indirectly or directly managed). The benchmark attempts to further refine benchmarking groups to the regional level, but will use a global benchmarking group in case of an insufficient number of regional peers (minimum of 12). If the GRESB reporting universe does not contain a sufficient number of peers to construct a global benchmark (minimum of 12), the benchmark will use a static model with cutoff points at: 25%, 50% and 75% data coverage.

The following steps are taken for scoring at property type level:

  1. Data coverage values for each combination of management and property type are placed on a bell curve (a distribution of peer group’s values).
  2. Three cutoff points are applied, breaking the distribution in quartiles. Consequently, each data coverage value falls into one of the four quartiles.
  3. The 1st, 2nd, 3rd or 4th quartiles receive 0.375, 0.75, 1.125 or 1.5 points, respectively.
  4. The scores obtained for each data coverage value are aggregated at the property type level, using the weights of managed and indirectly managed assets.

The following steps are taken for scoring proportion of waste by disposal route:

  1. The values for total percentage of “Diverted” waste is put on a bell curve and divided in four quartiles
  2. The 1st, 2nd, 3rd or 4th quartile receives 0.375, 0.75, 1.125 or 1.5 points, respectively
  3. Diverted waste is weighted with a higher score than incineration and landfills.

This indicator is reported and scored separately for each property type. The total score of the indicator is calculated by taking a weighted average of the scores per property type weighted by the GAV percentage allocated to each property type in RC5.1

References

EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017: 5.2, Coverage

INREV Sustainability Reporting Recommendations, 3.10-3.11

LEED 2009 for Existing Buildings, MR Prerequisite 2

RobecoSAM Corporate Sustainability Assessment 2017: 4.2.5, Waste

0.75 points , MP, E

Intent

Third-party review on ESG data provide investors and participants with confidence regarding the integrity and reliability of the reported information. This indicator is NOT asked per property type but asks about review of performance indicator data across the whole portfolio.

Terminology

See definitions in Appendix 7a.

Requirements

Select yes, no or not applicable. If yes, state whether the waste production data has been checked, verified or assured (select one option; the most detailed level of scrutiny to which the data was subject). Select the assurance/verification standard (if applicable) from the dropdown menu (see Accepted assurance schemes in the Appendices); Any "Other" standard selected from the Scheme name dropdown menu will be subject to validation.

Name of the organization: Provide the full name of the organization. You may be asked for additional information about the organization(s). It is possible to report on multiple organizations.

Evidence: Document upload is mandatory. Evidence should include:

  1. Prove of the existence of the third-party waste data review
  2. A description of the type of third-party review (checked, verified, or assured), the used assurance standard (when applicable), and the name of the third-party that conducted the review
  3. Proof that the waste data review was performed for the underlying assets of the reporting entity

Note:This indicator differs from PD5.2 in both granularity (level of detail) and scope:

  • If data granularity required in PI4.1 is higher than in PD5.2, participants can not assume that data review documented in PD5.2 also applies to PI4.1.
  • However, if data granularity provided in PI4.1 is lower than PD5.2, then participants can assume that independent review documented in PD5.2 implicitly covers this indicator.
In the latter case, responses will only be considered valid if reporting boundaries for both sets of indicators are equivalent. Any difference in reporting boundaries needs to be thoroughly supported by evidence and clearly explained by participants.

Scoring

Scoring is based on (1) the type of third-party review, (2) the validity of the name of the organization reported, and (3) the used assurance standard, when applicable.

The reported answer options are validated based on the provided evidence, and points are contingent upon validity of the supporting evidence.

References

GRESB’s accepted assurance and verification standards based upon their alignment with CDP's Verification Guidance

EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017: 5.4, Third party assurance

3 points , MP, E

Indicator aligned with PRI Reporting Framework 2018, Direct Property, PR 09.1 and 09.2

Intent

Environmental performance targets guide organizations and their employees towards measurable improvements and are a key determinant to integrate sustainability into business operations. GRESB assesses the existence of credible targets, not the ambition level of these targets.

Terminology

See definitions in Appendix 7a.

Requirements

Select yes or no. If yes, complete the table for all applicable performance indicators (energy consumption, GHG emissions, water consumption and waste management) for the whole portfolio’s (Managed and Indirectly Managed assets) targets.

Target type: Select from the dropdown menu whether the performance indicator target is based on absolute or like-for-like data, or is intensity-based.

Baseline year: Include a baseline year. Participants have the option to select a baseline year from 2000 onwards.

End year: This is the end date for the long-term reduction targets. The end year must be 2018 or later.

2018 target: State the target for the current reporting year (see Portfolio Characteristics EC3).

Externally communicated: Select yes or no for each performance indicator target.

Other: State the other performance indicator for which you have set a long-term target. Other answers must be outside the options listed in the question, but must be related to performance indicators.

Scoring

This indicator is scored based on (1) the availability of one or more targets, each target earns 0.75 points and (2) whether an individual target is communicated externally; external communication adds an additional 0.25 points per target. Acceptable responses must include:

  1. The actual long-term target
  2. Baseline year
  3. End year
  4. 2018 Target

Open text box is not scored and is for reporting purposes only.

References

EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017: 7.9, Narrative on performance

Recommendations of the Task Force on Climate-Related Financial Disclosures June 2017: Metrics and Targets- C

Building Certifications

This Indicator intends to assesses the entity’s use of green building certifications and energy ratings. Publicly disclosed asset-level building certifications and ratings provide third-party verified recognition of sustainability performance in new construction, refurbishment and operations. Typically, building certifications affirm that individual assets are designed and/or operated in ways that are consistent with independently developed sustainability criteria.

Green Building Certificates

2018 Indicator

10 points , IM, E

(BC1.1 and BC1.2 can obtain a maximum of 12 points in total.)

Indicator aligned with PRI Reporting Framework 2018, Direct Property, PR 10

Intent

This Indicator intends to assess the entity’s use of green building certifications awarded for design, construction and/or major renovation (refurbishment). Green building certificates provide a measure of asset quality that may provide benefits for occupants, society and the environment. Building certifications also serve as an additional layer of transparency and accountability to inform investors and occupiers on the sustainability performance of an asset.

Terminology

Green Building Certificate: Recognition that a project has received a green building rating. A certificate indicates the name and location of the project, version of the rating system, date of certification, and level of recognition.

Green building certification for design and/or construction: Green Building Certificate obtained for building design, development and structure. These building certifications affirm that individual assets were designed, developed and structured in ways that are consistent with independently developed criteria.

Level of certification: The level achieved with successful completion of the rating scheme.

Number of certified assets: The number of assets that were awarded a green building certificate before or during the reporting period (excluding pre-assessments or other unofficial forms of pre-certification).

Scheme name: The name of the Green Building Certification scheme.

Standing Investments: Real estate properties where construction work has been completed and which are owned for the purpose of leasing and producing rental income. The level of occupancy is not relevant for this definition. Also known as operating buildings.

Sub-scheme name: A Green Building Certificate’s sub-category to a Scheme name used to certify a particular property type and/or to specify the type of building certificate (whether a Green Building Certificate is an Operational Green Building Certificate or a New Construction Green Building Certificate).

Time of construction: The period during which the asset was built.

Requirements

Select yes or no. If yes, complete the table with aggregate portfolio information or report the building certifications obtained through the asset-level portal.

This indicator is solely focused on the certificates obtained for building design, development and structure of standing investments. Operational green building certificates should be reported separately in BC1.2. Certifications of assets underdevelopment are reported separately in the New Construction and Major Renovation Aspect.

Note: Some certification schemes are applicable for both the building design/construction and the building operational phases, but should only be reported for the applicable phase, in the corresponding indicator. If you use the asset level portal to report your building certifications, these schemes will be aggregated towards both BC1.1 and BC1.2 because the system does not know which phase is applicable. Please check the aggregated towards both BC1.1 and BC1.2 because the system does not know which phase is applicable. Please check the aggregated numbers on the portfolio level and remove the not applicable entries.

Only report on green building certificates that were awarded before or during the reporting period. Pre-assessments or other unofficial forms of precertification are not valid.

Scheme / sub-scheme name: Select from the dropdown list. The full list is provided in the Real Estate Reference Guide Appendix 3a.

Note: If you cannot find a Scheme in the dropdown list and want to add a new scheme name and/or sub-scheme name, please contact the GRESB Helpdesk. You are also required to answer a set of additional questions about the scheme. These questions are not scored, but they are required for GRESB’s data validation process.

Number of certified assets: If an asset or a floor area is certified by more than one scheme, report all schemes on the asset level portal.

Percentage portfolio covered by floor area: The percentage of the portfolio for a specific property type for which green building certificates were obtained (excluding pre-assessments or other unofficial forms of pre- certification). Note: The denominator in this indicator is the total floor area for a property type, not the total floor area for the whole portfolio.)

Scoring

Each reported certification is validated and given one out the following four validation statuses which determine a scoring weight for each coverage percentage:

  • Full Points: 1.0
  • Partial(+): 0.6
  • Partial(-): 0.3
  • No Points: 0

Each coverage percentage is multiplied by its associated weight and then summed up to give an overall coverage percentage per property type. This coverage percentage is then benchmarked against other coverage percentages from the same property type and region. The benchmark is split into quartiles, resulting in 2.5, 5, 7.5, or 10 points.

If there is an insufficient number of entities (minimum of 12) reporting certification coverages within the combination of region and property type, then the coverage is benchmarked globally within the property type. If there is an insufficient number of reporting entities within the property type, then static cut-off points of 25%, 50% and 75% are used.

BC1.1 and BC1.2 are firstly benchmarked and scored individually. The maximum points available for BC1.1 is 10 points and the maximum points available for BC1.2 is 12 points. The two scores are then added up and capped at a maximum of 12 points.

Level of certification is for reporting purposes only and not used for scoring.

This indicator is reported and scored separately for each property type. The total score of the indicator is calculated by taking a weighted average of the scores per property type weighted by the GAV percentage allocated to each property type in RC5.1

Examples

Answer structure: BREEAM/New Construction, Very Good

Scheme name: BREEAM/New Construction

  • Level of certification: Very good

Answer structure: LEED/New Construction, Gold

  • Scheme name: LEED/New Construction
  • Level of certification: Gold

12 points , IM, E

(BC1.1 and BC1.2 can obtain a maximum of 12 points in total.)

Indicator aligned with PRI Reporting Framework 2018, Direct Property, PR 10

Intent

This Indicator intends to assess the entity’s use of green building certifications for building operation and maintenance. Green building certificates provide a measure of asset quality that may provide benefits for occupants, society and the environment. Building certifications also serve as an additional layer of transparency and accountability to inform investors and occupiers on the sustainability performance of an asset.

Terminology

Baseline year: The initial year the participant uses as a starting point to set and measure improvement targets for any performance indicator.

Green Building Certificate: Recognition that a project has received a green building rating. A certificate indicates the name and location of the project, version of the rating system, date of certification, and level of recognition.

Level of certification: The level achieved with successful completion of the rating scheme.

Number of certified assets: The number of assets that were awarded a green building certificate before or during the reporting period (excluding pre-assessments or other unofficial forms of pre-certification).

Operational green building certificate: Green Building Certificate for operational buildings, obtained based on actual operational data for a specific period and the way the building is operated. Typically, these Green Building Certificates certify that individual assets are operated in ways that are consistent with independently developed sustainability-related criteria.

Scheme name: The name of the Green Building Certification scheme.

Standing Investments: Real estate properties where construction work has been completed and which are owned for the purpose of leasing and producing rental income. The level of occupancy is not relevant for this definition. Also known as operating buildings.

Sub-scheme name: A Green Building Certificate’s sub-category to a Scheme name used to certify a particular property type and/or to specify the type of building certificate (whether a Green Building Certificate is an Operational Green Building Certificate or a New Construction Green Building Certificate).

Requirements

Select yes or no. If yes, report the building certifications on the asset-level portal or complete the table with aggregate portfolio information or report the building certifications obtained through the asset-level portal. using the following structure:

This indicator is solely focused on the certificates obtained for operating buildings.Building design / construction building certificates are not considered valid for this indicator and should be reported separately in BC1.1.

Note: Some certification schemes are applicable for both the building design/construction and the building operational phases, but should only be reported for the applicable phase, in the corresponding indicator. If you use the asset level portal to report your building certifications, these schemes will be aggregated towards both BC1.1 and BC1.2 because the system does not know which phase is applicable. Please check the aggregated numbers on the portfolio level and remove the not applicable entries. inapplicable response.

Only include green building certificates that were awarded before or during the reporting period. Some green building certificates are valid for a limited period only – the certificate should be officially in effect during the reporting period. Pre-assessments or other unofficial forms of precertification are not valid.

Scheme / sub-scheme name: Select from the dropdown list. The full list is provided in the Real Estate Reference Guide Appendix 3a.

Note: If you cannot find a Scheme in the dropdown list and want to add a new scheme name and/or sub-scheme name, please contact the GRESB Helpdesk. You are also required to answer a set of additional questions about the scheme. These questions are not scored, but they are required for GRESB’s data validation process.

Number of certified assets: If an asset or a floor area is certified by more than one scheme, report all schemes on the asset level portal.

Percentage portfolio covered by floor area: The percentage of the portfolio for a specific property type for which green building certificates were obtained (excluding pre-assessments or other unofficial forms of pre- certification). Note: The denominator in this indicator is the total floor area for a property type, not the total floor area for the whole portfolio.)

Scoring

Each reported certification is validated and given one out the following four validation statuses which determine a scoring weight for each coverage percentage:

  • Full Points: 1.0
  • Partial(+): 0.6
  • Partial(-): 0.3
  • No Points: 0

Each coverage percentage is multiplied by its associated weight and then summed up to give an overall coverage percentage per property type. This coverage percentage is then benchmarked against other coverage percentages from the same property type and region. The benchmark is split into quartiles, resulting in 2.5, 5, 7.5, 10 points. 12 points are given only when there is 100% coverage.

If there is an insufficient number of entities (minimum of 12) reporting certification coverages within the combination of region and property type, then the coverage is benchmarked globally within the property type. If there is an insufficient number of reporting entities within the property type, then static cut-off points of 25%, 50% and 75% are used.

BC1.1 and BC1.2 are firstly benchmarked and scored individually. The maximum points available for BC1.1 is 10 points and the maximum points available for BC1.2 is 12 points. The two scores are then added up and capped at a maximum of 12 points.

Level of certification is for reporting purposes only and not used for scoring

This indicator is reported and scored separately for each property type. The total score of the indicator is calculated by taking a weighted average of the scores per property type weighted by the GAV percentage allocated to each property type in RC5.1

Examples

Answer structure: BREEAM/In Use, Very Good

  • Scheme name: BREEAM/In Use
  • Level of certification: Very good

Answer structure: LEED/Building Operations + Maintenance, Gold

  • Scheme name: LEED/Building Operations + Maintenance
  • Level of certification: Gold

Energy Ratings

2018 Indicator

3 points , IM, E

Indicator aligned with PRI Reporting Framework 2018, Direct Property, PR 10

Intent

This Indicator intends to assess the entity’s use of green building certifications and energy ratings. Energy ratings are often government mandated and provide a measure of the energy efficiency performance of buildings. As such they enable tenants and investors to identify buildings that are both environmentally friendly and have low utility costs.

Publicly disclosed asset-level building certifications and ratings provide third-party verified recognition of sustainability performance in new construction, refurbishment and operations. Typically, building certifications affirm that individual assets are designed and/or operated in ways that are consistent with independently developed sustainability criteria.

Terminology

Energy Rating: A scheme that measures the energy efficiency performance of buildings.

ENERGY STAR: A voluntary scheme designed by the US Environmental Protection Agency (EPA) that measures the energy efficiency of buildings. ENERGY STAR ratings are mandatory in some US cities and states.

EU Energy Performance Certificates (EPC): The Energy Performance Certificate regime introduced by the EU Energy Performance of Buildings Directive 2010.

Government energy efficiency benchmarking: An energy benchmarking scheme that is mandated by the government (e.g. mandatory for the asset’s jurisdiction) with a publicly disclosed rating, other than the EU EPC or NABERS Energy. For example: New York City’s Local Law 84, Washington, DC’s Clean and Affordable Energy Act of 2008, or California’s Assembly Bill 1103. Disclosure may be annual or coincident with financial transactions.

NABERS Energy: The National Australian Built Environment Rating System (NABERS) measures the energy performance of buildings.

Requirements

Select yes or no. If yes, complete the table. Only include energy ratings that were awarded before or during the reporting period (pre-assessments or other unofficial rating schemes are not valid). Some energy ratings are valid for a limited period only – the rating should be officially in effect during the reporting period.

Floor area weighted score: The average score of an energy rating is calculated based on all valid energy ratings within the portfolio per property type. The denominator in this calculation is the floor area for a specific property type, so not the total floor area for the whole portfolio. Only include the floor area of assets with a valid energy rating, exclude the floor area of assets without an energy rating from the denominator. The fields in which the floor area weighted score is reported allows participants to either report a single number, multiple numbers or text.

Government energy efficiency benchmarking: Only include benchmarking schemes mandated by the government with a publicly disclosed rating. This can include ENERGY STAR rated properties with a rating that is less than 75, as long as this rating is publicly available. Benchmarking schemes not mandated by the government (i.e., voluntary schemes,such as non-mandatory ENERGY STAR), or any ratings that are not publicly disclosed, should be reported under “Other”.

Percentage portfolio covered by floor area: The percentage of the portfolio for a specific property type for which an energy rating was obtained (excluding pre-assessments or other unofficial rating schemes). The denominator in this indicator is the total floor area for a property type, not total floor area for the whole portfolio. Include the floor area of all assets for the property type in the dominator.

EU Energy Performance Certificates (EPC): Only include EPCs that were officially issued by the government agency or delegated authority authorized pursuant to the terms of the EPBD. Different calculation methods apply throughout Europe. For European countries where a “letter system” is used, use the related kWh to calculate the floor area weighted score and report the letter related to the outcome of your calculation. Alternatively, you can use the field to report individual EPC levels and the applicable percentage of the portfolio.

ENERGY STAR: The ENERGY STAR scoring system uses a rating scale from 1 to 100 points. Only report on assets with an official ENERGY STAR label, meaning with a score of 75 or higher and with a certificate issued by the US EPA. ENERGY STAR rated properties with a rating that is less than 75 should be reported under Government energy efficiency benchmarking.

Note: In August 2018, Energy Star changed their score models for a specific subset of properties and most Energy Star scores dropped. As of December 2018, all participants should report the updated scores and valid labels (using the updated scores). Properties that no longer qualify for an Energy Star label should be excluded in the calculations for Energy Star label, but can be included in the calculations for Government energy efficiency benchmarking.

Reference Guide requirements update (13 May, 2019): Participants can report all Energy Star labels that were achieved anytime during 2018. This includes labels that were achieved on or before August 2018.

NABERS: The NABERS system uses a rating scale from 1 to 6 stars (6 stars reflect market-leading performance, whereas 1 star reflects considerable room for improvement). Coverage (%) for each score category needs to be calculated based on the total floor area for the property type. The sum of the percentage coverage for the score categories needs to equal the overall percentage of portfolio by floor area. The floor area weighted score should be calculated using the NABERS program’s official Method for Calculating Average NABERS Rating.

Other: State the energy rating scheme. Other answers must be outside of the options listed in the question.

Scoring

The portfolio coverages for each certification are added together within each property type,and then benchmarked against other coverage percentages from the same property type and region. The benchmark is split into quartiles, resulting in 0.75, 1.5, 2.25, and 3 points.

If there is an insufficient number of entities (minimum of 12) reporting energy rating coverages within the combination of region and property type, then the coverage is benchmarked globally within the property type. If there is an insufficient number of reporting entities within the property type, then static cut-off points of 25%, 50% and 75% are used.

GRESB does not score the quality of energy ratings, but only the coverage across countries.

This indicator is reported and scored separately for each property type. The total score of the indicator is calculated by taking a weighted average of the scores per property type weighted by the GAV percentage allocated to each property type in RC5.1

Examples

ENERGY STAR: 10% of the certified fraction of the portfolio received 85 points, 10% received 80 points, 30% received 75 points and 50% received 70 points.

Floor area weighted score: (10%*85 + 10%*80 + 30%*75) / 50% = 78 (round the obtained value to the closest whole number).

EU Energy Performance Certificate (EPC): Assets are located in the Netherlands:

  • Asset 1: 2000 m2, EPC A, EPC value 0.72
  • Asset 2: 1500 m2, EPC B, EPC value 1.12
  • Asset 3: 5000 m2, EPC B, EPC value 1.14
  • Asset 4: 1000 m2, EPC n/a, EPC value n/a
  • Asset 5: 500 m2, EPC E, EPC value 1.5
  • Floor area weighted score: (0.72*2000 + 1.12*1500 + 1.14*5000 + 500*1.5) / (2000 + 1500 + 5000 + 500) = 1.06 (Dutch EPC label B)

References

SASB-Real Estate Owners, Developers & Investment Trusts, March 2016: IF0402-04

Stakeholder Engagement

This Aspect focuses on engagement with employees, tenants, direct third-party suppliers and the community. Improving the sustainability performance of a real estate portfolio requires dedicated resources, a commitment from senior management and tools for measurement/management of resource consumption. It also requires the cooperation of other stakeholders, including tenants, suppliers, a participant’s workforce and the local community. The Aspect identifies actions taken to engage with those stakeholders and to characterize the nature of the engagement.

Employees

Employees are key stakeholders in any business. Organizations can make use of sustainability reporting metrics to boost employee engagement, motivation, recruitment and retention of talent, work-life balance, teamwork and leadership development. Employee engagement may also contribute to the successful implementation of sustainability best practices across the organization. Furthermore, proper understanding of workplace-related ESG issues, and how these issues are reported, will help the organization with its branding as an employer.

Note: There are situations where the entity benefits from services performed by employees of an investment manager under an exclusive investment management agreement. The individuals are wholly responsible for investment and portfolio management (including sustainability) of the participating entity's property assets, and has wide discretionary powers for day to day management of these investments (which include supervisory management powers over third party property managers). When these situations occur, you can refer to the employees of the investment manager as the employees of the reporting entity.

Suppliers

Indicators on engaging with suppliers have the purpose of comparing the entity’s management of ESG-related issues in its material and service supply chain. Negative supply chain-related ESG issues can pose a reputational risk, and can also put purchasing and contracting strategies at risk. Property companies and fund managers are in a strong position to influence the behavior of external property/asset managers and/or other external suppliers with regard to ESG issues.

Tenants/ Occupiers

Tenant engagement is meant to increase the satisfaction of tenants and, with that, their likelihood of remaining in the building. The tenant/occupier is the person with whom the landlord of the property has a direct contractual relationship to occupy part or all of the building. In most cases, this will be a landlord/tenant relationship documented by a lease. However, it also includes occupiers that occupy on the basis of other types of contractual agreement, for example as a franchisee. The relationship between tenants and building owners is important both for securing and maintaining rental income as well as for managing risks that arise from the tenant/occupier’s use of the building.

Community

Local community is another important stakeholder group of real estate companies. Indicators on community engagement examine the strategies used by the entity to involve with the local community.

Employees

2018 Indicator

2 points , IM, S

Intent

The intent of this indicator is to examine the types and content of training received by employees responsible for this entity. A more skilled and aware workforce enhances the organization’s human capital and may help to improve employee satisfaction. Both elements contribute to improved business performance.

Terminology

Community health, safety and well-being: Training related to the health, well-being and safety of stakeholder communities or populations in surrounding neighborhoods.

Community safety: Training related to the prevention of harm to stakeholder communities in surrounding neighborhoods.

Community social and economic impacts: Training related to the social and economic dimensions of stakeholder communities in surrounding neighborhoods.

Contamination: Land and groundwater pollution which may require action to reduce risk to people or the environment. As an example, contamination can be assessed through a Phase I or II Environmental Site Assessment.

Employee(s): Either the entity’s employees or the organization’s employees whose primary responsibilities include the operation or support of the entity.

Environmental issues: The impact on living and non-living natural systems, including land, air, water and ecosystems. This includes, but is not limited to, biodiversity, transport and product and service-related impacts, as well as environmental compliance and expenditures.

Energy efficiency: Refers to products or systems using less energy to provide the same consumer benefit.

GHG emissions: GHGs refers to the seven gases listed in the GHG Protocol Corporate Standard: carbon dioxide (CO2); methane (CH4); nitrous oxide (N2O); hydrofluorocarbons (HFCs); perfluorocarbons (PFCs); nitrogen trifluoride (NF3) and sulphur hexafluoride (SF6).

Natural hazards: Naturally occurring hazards, including but not limited to flooding, drought, hail storms, earthquakes and fire (including wildfire).

Professional training: Training related to day-to-day operations, health and safety, specialization career development courses, or related/similar topics. Training can be delivered in person, online or in other formats.

Regulatory standards: Training on (mandatory) energy/carbon disclosure schemes or other environment-related regulatory standards, at either local or global level.

Regular training: Occurs at least once every two years.

Social issues: Concerns the impacts the organization has on the social systems within which it operates.

Sustainability-specific training: Training related to environmental, social and governance (ESG) issues.

Waste management: Issues associated with hazardous and non-hazardous waste generation, reuse, recycling, composting, recovery, incineration, landfill and on-site storage.

Water efficiency: Refers to the conservative use of water resources through water-saving technologies to reduce consumption.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Percentage of employees covered: The percentage of employees covered based on headcount for employees responsible for the entity (see example). If the number of employees responsible for the entity changed during the reporting period, calculate the percentage based on the average number.

Training topics: Select the applicable training topics included in the training series during the reporting year or the year prior to that.

Other: State the environmental or social training topic(s). It is possible to report multiple other answers.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at organization level.

Examples

Both percentages should be calculated based on the following formulas:

    Number of employees receiving training / Total number of employees x 100%

    Number of employees receiving sustainability specific training / Total number of employees x 100%

Scoring

Points are awarded based on (1) the type of training and (2) percentage of employees who received training. The training topics are not scored and are used for reporting purposes only.

References

EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017: 5.3, Employee Training and development

RobecoSAM Corporate Sustainability Assessment 2017: 3.3.2, Coverage

1.5 points , IM, S

Intent

This indicator is intended to show action taken to understand employee satisfaction. Employee satisfaction surveys help organizations understand critical issues within the business, engage with their staff and increase employee satisfaction, which may contribute to improving retention rates and overall productivity.

Using widely applied employee satisfaction surveys should be translated into easily interpretable metrics can help analyze and compare the outcomes, despite the many variations between firms.

Terminology

Employee(s): Either the entity’s employees or the organization’s employees whose primary responsibilities include the operation or support of the entity.

Employee satisfaction survey: Survey measuring overall and work-specific employee satisfaction at the individual and organizational levels. The survey should directly address employee concerns and include the opportunity to provide recommendations for improvement.

Net promoter score: The Net Promoter Score ® (NPS) is a customer loyalty metric developed by Bain & Company. It divides customers, tenants or employees into three segments: passives, detractors and promoters. The NPS is the percentage of promoters minus the percentage detractors.

Overall satisfaction score: An overarching metric in a satisfaction survey, with no prescribed scale, that measures how happy an employee or tenant is with the organization, lease, and/or services provided.

Quantitative metric: Any measure or parameter in employee satisfaction that can be represented numerically.

Survey response rate: The proportion of submitted surveys as a percentage of the total number of employees that received a request to complete a survey.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Percentage of employees covered: The percentage of employees covered based on headcount for employees responsible for the entity (see example). If the number of employees responsible for the entity changed during the reporting period, calculate the percentage based on the average number.

Survey response rate: Report the proportion of employees that received and completed the survey, compared to the total number of employees that have received the survey expressed as a percentage (see example).

Name of the organization: Provide the full name of the organization. You may be asked for additional information about the organization(s). It is possible to report on multiple organizations.

Evidence: Document upload or document name and date. The evidence should sufficiently support all the items selected for this question. In the absence of an upload, providing the document name AND date of publication is mandatory, and you may be asked to disclose the document to GRESB as part of the validation process.

The evidence should indicate that the survey was conducted. It can be a sample survey or survey results reports with aggregated feedback.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at organization level.

Examples

Percentage of employees covered = Number of employees receiving the satisfaction survey / Total number of employees x 100%

Survey response rate = Number of individual surveys submitted / Number of employees receiving the satisfaction survey x 100%

Scoring

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

It is not necessary to select all answer options in order to obtain the maximum score for this indicator. Reporting multiple names of organizations will not impact scoring; reported answer options in this field are validated individually, but scores will not be aggregated.

The reported answer options are validated based on the provided evidence, and points are contingent upon validity of the supporting evidence.

References

GRI Sustainability Reporting Standards, 2016: 102-43, Approach to stakeholder engagement

Bain & Company, Introducing: The Net Promoter System®

1 point , IM, S

Intent

The intent of this indicator is to evaluate a firm’s response to the outcomes of an employee satisfaction survey. Proactive responses demonstrate commitment to the employee engagement process and to developing, maintaining and enhancing employee satisfaction.

Terminology

Action Plan: A detailed plan outlining actions needed to enhance tenant satisfaction. An action plan has three major elements (1) Specific tasks: what will be done and by whom; (2) Time horizon: when will it be done; (3) Resource allocation: what specific funds are available for specific activities.

Employee(s): Either the entity’s employees or the organization’s employees whose primary responsibilities include the operation or support of the entity.

Focus groups: Working groups established to, in this context, focus on improving employee satisfaction.

Senior Management Team: A team of individuals who have the day-to-day responsibility of managing the entity/organization. Senior management are sometimes referred to, within corporations, as executive management, executive leadership team, top management, upper management, higher management, or simply seniors.

Separate teams/departments: Representatives from different departments and disciplines within the organization.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Other: State measures/activities that were part of the program. It is possible to report multiple other answers.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at organization level.

Scoring

Points are awarded to each selected checkbox option and are then aggregated to calculate the indicator’s final score.

Reporting multiple other answers will not impact scoring; reported answer options in this field are validated individually, but scores will not be aggregated.

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

0.5 points , IM, S

Intent

Terminology

Absentee rate: A measure of absenteeism expressed as a percentage of total days scheduled to be worked by the workforce during the reporting period.

Employee(s): Either the entity’s employees or the organization’s employees whose primary responsibilities include the operation or support of the entity.

Injury rate: A measure of the total number of instances of being injured, (including occupational diseases and occupational disabilities, and fatalities) arising from operations expressed as a percentage of total number of employees.

Lost day rate: A measure of the impact of occupational accidents and diseases as reflected in time off work by the affected workers. It is expressed by comparing the total workdays lost due to occupational injury to the total number of hours scheduled to be worked by the workforce during the reporting period.

Reporting on health and safety indicators: Records of employee health and safety.

Workstation checks: Assessment of employee workstations (immediate working environment including desks, IT and other office equipment) performed to monitor compliance with health and safety requirements. The checks can either be performed internally or by independent third parties.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Open text box: It is mandatory to use the open text box to explain the applied calculation method/formula and monitoring scope of each of the selected metrics. The calculations should cover events arising from on-site operations, building maintenance and employees commuting to and from their workplace. Response provided in this open text-box used for scoring.

Construction works related metrics: Injuries and fatalities (including third-party workers, visitors, members of the public) that occur during construction or major renovation projects should be reported in the New Construction & Major Renovations Aspect (NC 12.2).

Other metrics: State the other indicator monitored. It is possible to report multiple other answers. Other indicators can include the occupational disease rate (ODR), near miss rate, presenteeism rate, and fatalities, but should not include answers provided in the New Construction & Major Renovations section (NC 12.2).

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at organization level.

Scoring

Points are awarded based on the number of health-related indicators monitored and/or tracked, contingent upon the validity of the explanation of the applied calculation method/formula provided in the open text box.

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

References

RobecoSAM Corporate Sustainability Assessment, 2017: 3.5.2, Risk Culture

GRI Sustainability Reporting Standards, 2016: 403-2

EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017: 5.6 H&S-Employee Health and Safety

Suppliers

2018 Indicator

3 points , MP, G

Indicator aligned with PRI Reporting Framework 2018, Direct Property, PR 07

This Indicator is intended to describe the management practices and requirements the entity uses to manage supply chain risks. The procurement process is an effective way to integrate the organization’s sustainability-specific requirements into their supply chain. This indicator applies to existing and new contracts.

Terminology

Business Ethics: Basic moral and legal principles used to address issues such as corporate governance, insider trading, bribery, discrimination, corporate social responsibility and fiduciary responsibilities.

Environmental process standards: Minimum standards required during the procurement process in relation to environmental processes, such as requirements for disposal of waste generated by contractors.

Environmental product standards: Minimum standards required during the procurement process in relation to environmental products, such as requiring a certain percentage of products to be locally sourced or contain recycled content.

ESG-specific requirements for sub-contractors: Refers to any ESG-related requirements that the company or fund has included in its contracts with its sub-contractors, including specification and use of sustainable materials, systems, processes and operating practices.

External contractors: Organizations or persons working on-site or off-site on behalf of an organization with a relationship determined by a contract. A contractor may hire their own staff directly or hire sub-contractors or independent contractors.

External property/asset managers: Organizations or persons to which participants outsource some or all of their property and asset management functions.

External suppliers: Organizations or persons that provide a product or service used in the supply chain during the reporting period.

Human health-based product standards: Minimum standards for the health-related attributes of products, such as lists of prohibited chemicals.

Human rights: Human rights are rights inherent to all human beings, whatever their nationality, place of residence, sex, national or ethnic origin, colour, religion, language or any other status.

Occupational safety (for employees):Occupational safety focuses on the primary prevention of hazards within workplace. This includes the reduction of risk factors at the workplace leading to cancers, accidents, musculoskeletal diseases, respiratory diseases, hearing loss, circulatory diseases, stress related disorders and communicable diseases and others.

Sustainable procurement: Encourage, facilitate or require the reduction of consumption of goods within the building or premises and/or the sourcing of sustainable or ethical goods. Clauses can relate to reduction of paper consumption, supply of biodegradable materials, use of recycled paper, building materials, etc.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Other: State the other party to whom the requirements apply and/or the other topic included in requirements. “Tenants” will not be considered a valid other answer. It is possible to report multiple other answers for both the above sub-options.

Evidence: Document upload is mandatory for this indicator. The evidence should sufficiently support all the items selected for this question.

Evidence should support at least one element of the ESG procurement requirements applying to each stakeholder group selected. Evidence examples may include but are not limited to, Communication or redacted documentation/contract enforcing ESG procurement.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded to each selected party and are then aggregated to calculate the indicator’s final score.

Reporting multiple other answers will not impact scoring; reported answer options in this field will be validated individually, but scores will not be aggregated.

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

Points are contingent upon validity of the supporting evidence.

References

GRI Sustainability Reporting Standards, 2016: 204-1; 308, Supplier environmental assessment; GRI 414, Supplier social Assessment

RobecoSAM Corporate Sustainability Assessment, 2017: 3.5.2 Risk Exposure

Not scored , MP, G

Indicator aligned with PRI Reporting Framework 2018, Direct Property, PR 07

Intent

The intent of this indicator is to assess whether the reporting entity effectively engages with its supply chains in order to deliver sustainable goals communicated in indicator SE4.1. A sustainable organization should be conscious of decisions and activities undertaken by its supply chains. A fair and inclusive process based on engaging suppliers should be developed to demonstrate the entity’s willingness to commit to ESG outside its own boundaries.

Terminology

Sustainable procurement: Encourage, facilitate or require the reduction of consumption of goods within the building or premises and/or the sourcing of sustainable or ethical goods. Clauses can relate to reduction of paper consumption, supply of biodegradable materials, use of recycled paper, building materials, etc.

Requirements

Select yes, no or not applicable. If yes, describe the process.

Open text box: Explain the engagement process carried out by the reporting entity with regards to the delivery of sustainable procurement goals. In order to be as effective as possible the process described should cover or respect the following criteria:

  1. Materiality: Include an estimation of the proportion of the reporting entity’s revenue spent through its supply chains.
  2. Clear purpose of the engagement: The text must explain how the entity ensures the clarity of its engagement with suppliers.
  3. Supplier’s interest: The text should include a description of the entity’s identification of supplier’s interests.
  4. Importance of interest: Describe how the importance of suppliers’ interests is being respected throughout the engagement process.
  5. Necessary information: Describe how the reporting entity ensures that its suppliers benefit from the necessary information to base their decisions on.
  6. Balanced communication: Provide explanation around the entity’s ability to keep a two-way dialogue throughout its engagement with suppliers.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

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

References

ISO 20400, 2017: Sustainable Procurement

2 points , IM, S

Indicator aligned with PRI Reporting Framework 2018, Direct Property, PR 07

Intent

This indicator examines the methods used by a participant to monitor property/asset managers’ compliance with the participant’s sustainability-specific requirements. Describe the entity’s actions to ensure that property/asset managers fulfill the entity’s ESG requirements.

Terminology

External property/asset managers: Organizations or persons to which participants outsource some or all of their property and asset management functions.

Internal property/asset managers: The part of the organization or persons that is/are responsible for the entity’s property and asset management functions.

Monitoring of property managers: Performance evaluation and incentives put in place for property managers to employ sustainable processes in their day-to-day work.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Evidence: Document upload or document name and date. The evidence should sufficiently support all the items selected for this question. In the absence of an upload, providing the document name AND date of publication is mandatory, and you may be asked to disclose the document to GRESB as part of the validation process.

Name of the organization: If you select the answer option “checks performed by independent third party,” also state the full name of the organization. You may be asked for additional information about the organization. It is possible to report multiple organizations.

Professional standard: If you select the answer option “require alignment with a professional standard,” also state the full name of the applicable standard.

Other: State the other method used for monitoring. It is possible to report multiple other answers.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded based on (1) selected answer options and validity of provided other answers and, if applicable, (2) the validity of the name of the organization(s) and (3) the validity of the professional standard.

Reporting multiple other answers will not impact scoring; reported answer options in this field will be validated individually, but scores will not be aggregated.

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

Points are contingent upon validity of the supporting evidence.

References

GRI Sustainability Reporting Standards, 2016: GRI 308; GRI 414; 414-1; 412-1

2 points , IM, S

Indicator aligned with PRI Reporting Framework 2018, Direct Property, PR 07

Intent

This indicator examines the methods used by a participant to monitor external suppliers’ and/or service providers’ compliance with the participants ESG-specific requirements. This indicator refers to suppliers other than the property / asset managers covered in SE5.1.

Terminology

Checks by the organization’s employees or by external property/asset managers: Formal, structured checks that assess the compliance with sustainability-specific requirements in place for that supplier.

Monitoring of external suppliers and/or service providers: Performance evaluation and incentives in place for external suppliers and/or service providers to employ sustainability related processes in their day-to-day work.

Regular meetings with suppliers: Meetings with suppliers that take place at least four times per year, addressing sustainability-specific requirements in place for that supplier.

Sustainability-specific requirements: This answer option refers to any sustainability requirements that the company or fund has included in its contracts with its suppliers and/or external property/asset managers.

Update reports: Written reports received from suppliers that address compliance with the sustainability-specific requirements in place for that supplier.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Name of the organization: Provide the full name of the organization. You may be asked for additional information about the organization(s). It is possible to report on multiple organizations.

Professional standard: If you select the answer option “require alignment with a professional standard”, also state the full name of the applicable standard.

Other: State the other method used for monitoring. It is possible to report multiple other answers.

Other external suppliers and/or service providers: Mainly refer to the external parties other than the property/asssets managers covered by SE5.1.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded based on (1) selected answer options and validity of provided other answers and, if applicable, (2) the validity of the name of the organization(s) and (3) the validity of the professional standard.

Reporting multiple other answers will not impact scoring; reported answer options in this field will be validated individually, but scores will not be aggregated.

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

Points are contingent upon validity of the supporting evidence.

References

GRI Sustainability Reporting Standards, 2016: GRI 308; GRI 414; 414-1; 412-1

RobecoSAM Corporate Sustainability Assessment, 2017: 3.5.2, Risk Exposure

Not scored , MP, S

Intent

The intent of this indicator of this indicator is to identify the existence of a grievance mechanism at the reporting entity. Even where organizations operate optimally, significant negative sustainability impacts in the supply chain, including human rights violations, may be caused by an organization’s procurement decisions and activities. Grievance mechanisms play an important role to provide access to remedy and reflect an entity’s commitment to ESG management. An organization should establish a mechanism for stakeholders in the supply chain to bring this to the attention of the organization and seek redress.

Terminology

Accessible: Known to all stakeholder groups and provide adequate assistance for those who may face particular barriers to access (e.g. 24/7 availability)

Dialogue based: Looks for mutually agreed solutions through engagement between parties.

Equitable: Ensure that parties have reasonable access to sources of information, advice and expertise necessary to engage in a grievance process on fair, informed and respectful terms (e.g. independent review).

Grievance mechanism: Formal, legal or non-legal (or ‘judicial/non-judicial’) complaint process that can be used by individuals, communities and/or civil society organizations that are being negatively affected by certain business activities and operations. The process enables the complaining party to flag an issue, seek redress and remedy.

Improvement based: Drawing on relevant measures to identify lessons for improving the mechanism and preventing future harms.

Legitimate: Enable trust from stakeholder groups.

Predictable: Provide a clear procedure with an indicative time frame for each stage, and clarity on the types of process and outcome available.

Rights compatible: Ensure that outcomes accord with international norms of behavior.

Transparent: Keep parties informed about the progress.

Safe: Protect stakeholders from potential threats and retaliations through a secure, anonymous, independent and two-way communication system.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Other: State the other method used for the monitoring process. It is possible to report multiple other answers.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

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

References

ISO 20400, 2017: Sustainable Procurement

UN Guiding Principles on Business and Human Rights

Human Rights and Grievance Mechanism

GRI Sustainability Reporting Standards, 2016: 103-2, The management approach and its components

Tenants/Occupiers

2018 Indicator

4 points , IM, S

Indicator aligned with PRI Reporting Framework 2018, Direct Property, PR 12.2

Intent

This indicator is intended to describe the entity’s approach to engaging tenants on ESG issues. It identifies whether the entity has adopted a formal tenant engagement program and identifies the issues covered. An effective tenant engagement program facilitates communication with the landlord and provides a path for tenant indicators, concerns and suggestions to be integrated into operational and ESG decision-making.

Terminology

Building/asset communication: Publications, dashboards, elevator messages, and newsletters addressing ESG-related issues.

Engagement meetings: Individual meetings with specific tenants/occupiers to discuss ESG-related issues.

Events focused on increasing sustainability awareness: Events addressing the above sustainability-specific issues. They can be either private or open to the public, but they cannot be individual meetings with specific tenants/ occupiers.

Social media/online communications: Online or social-media communications providing tenants/customs with information on ESG-related issues and opportunities for action.

Sustainability guide: A document written for tenants/customs providing practical guidance on ESG-related issues, including opportunities for action.

Sustainability-specific issues: Topics related to the management of environmental, social, or governance issues.

Tenant sustainability training: A formal and structured training program addressing ESG-related issues and opportunities for action.

Requirements

Select yes or no. If yes, select all applicable sub-options. You must provide the portfolio coverage for each selected responses.

Percentage of portfolio covered: Coverage is calculated based on floor area. If the floor area covered changed during the reporting period (for example because of a change in the number of tenants), use the floor area percentage applicable at the end of the reporting period. The denominator is the floor area of the whole portfolio. Select one of the four categories provided in the dropdown menu.

Other: State the issue included in the tenant engagement program. Other answers must be outside the options listed in the question. It is possible to report multiple other answers.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded based on (1) selected tenant engagement options and (2) percentage of portfolio coverage per answer option.

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

Reporting multiple other answers will not impact scoring; reported answer options in this field are validated individually, but scores will not be aggregated.

References

SASB-Real Estate Owners, Developers & Investment Trusts (March 2016): IF0402-12

GRI Sustainability Reporting Standards, 2016: 102-43, Approach to stakeholder engagement

3 points , IM, S

Intent

This indicator examines whether and to what extent the organization engages with tenants regarding their satisfaction. Using consistently applied metrics can help analyze and compare the outcomes, despite the many variations between firms.

Terminology

Net Promoter Score: The Net Promoter Score ® (NPS) is a customer loyalty metric developed by Bain & Company, Fred Reichheld, and Satmetrix. It divides customers, tenants or employees into three segments: passives, detractors and promoters, using the following question “On a scale of 0 to 10, how likely would you be to recommend this company (or this product) to friends and colleagues?” In the original NPS ratings of 9 or 10 indicate promoters; 7 and 8, passives; and 0 through 6, detractors. There is also a European alternative, that classifies ratings of 8 to 9 as promoters, 6 to 7 as passives, and 0 to 5 as detractors. The NPS is the percentage of promoters minus the percentage detractors.

Overall satisfaction score: An overarching metric in a satisfaction survey, with no prescribed scale, that measures how happy an employee or tenant is with the organization, lease, and/or services provided.

Quantitative metric: Any measure or parameter in employee satisfaction that can be represented numerically.

Survey response rate: The proportion of submitted surveys as a percentage of the total number of employees that received a request to complete a survey.

Tenant satisfaction survey: A written survey conducted by the landlord, or by a third party on its behalf, which gives the tenant the opportunity to provide feedback on the space occupied.

Requirements

Select yes, no or not applicable. If yes, select all applicable sub-options.

Percentage of tenants covered: Calculated based on the number of tenants (e.g. organizations) in the portfolio that received the tenant satisfaction survey during the reporting period. If the number of tenants changed during the reporting period, use the number at the end of the reporting period. The denominator is the total number of tenants at portfolio level.

Name of the organization: Provide the full name of the organization. You may be asked for additional information about the organization(s). It is possible to report on multiple organizations.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded based on (1) whether the survey was undertaken internally or by a third party, and (2) percentage of tenants covered. The survey response rate and quantitative metrics sub-indicator are not scored.

References

GRI Sustainability Reporting Standards (2016): 102-43, Approach to stakeholder engagement

Bain & Company, Introducing: The Net Promoter System®

1 point , IM, S

Intent

This indicator examines how the organization responds to issues identified in tenant satisfaction surveys. Tenant satisfaction surveys are conducted to identify key issues and concerns, which can then be addressed through improvement measures and/or programs adopted by the landlord. Defining measures based on the outcome of the survey and implementing those measures demonstrates commitment to the tenant engagement process and to the development and maintenance of tenant satisfaction.

Terminology

Action Plan: A detailed plan outlining actions needed to enhance tenant satisfaction. An action plan has three major elements (1) Specific tasks: what will be done and by whom; (2) Time horizon: when will it be done; (3) Resource allocation: what specific funds are available for specific activities.

Asset/property manager A person responsible for developing and overseeing financial and strategic developments of real estate investments at asset level.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Other: State the issue included in the program to improve tenant satisfaction. It is possible to report multiple other answers.

Other: The elements covered by the program should be identified and described in detail.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded to each selected option and are aggregated to calculate the indicator’s final score. Reporting multiple other answers will not impact scoring, and it is not necessary to select all answer options in order to obtain the maximum score for this indicator.

The description provided in the open text box is for reporting purposes only.

3 points , IM, E

Intent

This indicator assesses how the entity addresses ESG issues in the fit-out and refurbishment of tenant space. A fit-out and refurbishment program helps to align the views and actions of landlords and tenants during an early stage of the occupancy, prior to the tenant/occupier going into occupation. Guidance and support from the start of the lease reinforce the importance placed on ESG issues and creates the basis for sustainably operated buildings.

Terminology

Fit-out: Work to design, refurbish and decorate the tenant-occupied portions of the leased property.

Fit-out and refurbishment assistance: Work to support or inform fit-out or refurbishment activities.

Minimum fit-out standards: Basic requirements for tenant fit-out and refurbishment. If the landlord is responsible for all fit-outs and the landlord has minimum fit-out standards in place, select this answer and indicate the percentage of portfolio covered.

Procurement assistance for tenants: Assistance for the tenants in the procurement process. It can include, but not limited to, green procurement guidance, procurement channels, and recommendation of green suppliers..

Refurbishment: Renovation or redecoration works undertaken by a landlord or tenant.

Tenant fit-out guide: A formal document providing tenants with information about landlord criteria and requirements for tenant fit-out of a leased building or part of a building, such as requirements for materials selection.

Requirements

Select yes or no. If yes, select all applicable sub-options.

If the landlord is responsible for the fit-out of the asset, you can select the second and the third options if the organization has set minimum sustainability thresholds for the fit-out of assets.

Percentage portfolio covered: Coverage is calculated based on floor area. If the floor area covered changed during the reporting period (for example because of a change in the number of tenants), use the floor area percentage applicable at the end of the reporting period. The denominator represents the floor area of the whole portfolio. Select one of the four categories provided in the dropdown menu.

Other: State the alternative topic included in the fit-out and refurbishment program. It is possible to report multiple other answers.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded based on (1) selected answer options and (2) percentage portfolio coverage per answer option.

Reporting multiple other answers will not impact scoring; reported answer options in this field are validated individually, but scores will not be aggregated.

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

References

SASB-Real Estate Owners, Developers & Investment Trusts, March 2016: IF0402-12

3 points , IM, E

Indicator aligned with PRI Reporting Framework 2018, Direct Property, PR 13

Intent

This indicator is intended to describe strategies to promote ESG performance through lease contracts. The content of lease contracts is the starting point for the relationship between the landlord and the tenant, and defines both parties’ respective rights and duties.

Terminology

Comfort: Clauses can relate to cooperation between the parties to achieve comfort, including complaints monitoring, and programming of the building management system to maximise efficient supply of air-conditioning.

Design/Development ratings: Encourage, facilitate or require the parties to commit to / not interfere with a design/development rating of the premises or building. Clauses can relate to achievement or maintenance of a rating, cooperating with the other party to assist them in obtaining a rating or in achieving a higher than previously achieved rating, sharing rating certificates when achieved or as requested, etc.

Enabling upgrade works: Encouraging, facilitating or requiring the parties to upgrade the building or premises to improve the efficiency or environmental performance of the building during the term. Clauses can relate to cooperation between the parties to facilitate the carrying out of works designed to improve the efficiency or environmental sustainability of the building.

Energy management: Clauses can relate to installation of metering equipment to measure energy consumption, programs to reduce the consumption of energy, including education of employees, sharing of energy consumption data between the parties, allowing a party to read the other’s energy meters, installation of energy efficient products, etc.

Environmental Initiatives: Any type of initiative relating to environmental sustainability, such as recycling, green cleaning or land use ecology.

Information sharing: Encourage, facilitate or require information sharing, related to energy or water consumption, production of waste or greenhouse gases, recycling rates, etc. Clauses can relate to providing the landlord access to the tenant’s meter, or to monthly automated reports being sent to both parties.

Managing waste from works: Clauses can relate to the landlord accepting a make-good payment in lieu of reinstatement works, the monitoring/minimisation of waste from works, enabling fitout to be reused, recycled, repurposed, or redirected from landfill, etc.

Performance rating: Clauses can relate to achievement or maintenance of a rating, cooperating with the other party to assist them in obtaining a rating or in achieving a higher than previously achieved rating, sharing rating certificates when achieved or as requested, etc.

Performance standards: Clauses can relate to works and maintenance contractors being required to adhere to waste programs, or not to interfere with building performance.

Premises design for performance: Clauses can relate to the design of the fitout so as to improve the efficiency or environmental sustainability of the building, fitout being built from recycled materials, the monitoring and/or minimisation of waste from works, fit out design that enables it to be reused at the end of the life of the lease, etc.

Social initiatives: Encourage, facilitate or require initiatives that are designed to improve the wellbeing of the premises’/buildings' surrounding communities. Initiatives can relate to provision of healthy food, commitments to gender equity or diversity, health and safety or above-award pay for building management, responsible use of ground level and surrounding public space that results in enhancement of the surrounding community, etc.

Standard lease contract: Standard lease format that is used by the organization as the basis for negotiations between landlord and tenant.

Sustainability management collaboration: The lease must require one or both parties to appoint a representative responsible for sharing the sustainability-related information.

Sustainable cleaning: Clauses can relate to cleaners being required to use environmentally friendly cleaning products, adhering to the building’s waste strategy, etc.

Sustainable procurement: Encourage, facilitate or require the reduction of consumption of goods within the building or premises and/or the sourcing of sustainable or ethical goods. Clauses can relate to reduction of paper consumption, supply of biodegradable materials, use of recycled paper, building materials, etc.

Sustainable transport: Clauses can relate to preparation of an alternative transport report, sharing of information relating to public transport, environmentally low impact transport, end of trip facilities, bicycle racks, car share services, etc.

Sustainable utilities: Encourage, facilitate or require the parties to discuss procurement of more sustainable utilities/offsets, or install plant and equipment to enable the generation and on-sale of sustainable utilities. Clauses can relate to on-sale of electricity, gas or water, on-sale of certified renewable sources of a utility, installation of renewable energy plant and equipment, installation of recycled water facilities, etc.

Waste management: Issues associated with hazardous and non-hazardous waste generation, reuse, recycling, composting, recovery, incineration, landfill and on-site storage.

Water management: Clauses could relate to installation of metering equipment to measure water consumption, sharing of water consumption data between the parties, allowing a party to read the other’s water meters, installation of water efficient products, etc.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Other: State the alternative topic included in the standard lease contract. It is possible to report multiple other answers.

Evidence: Document upload or document name and date. The evidence should sufficiently support all the items selected for this question. In the absence of an upload, providing the document name AND date of publication is mandatory, and you may be asked to disclose the document to GRESB as part of the validation process.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded to each selected checkbox option and are then aggregated to calculate the indicator’s final score.

Reporting multiple other answers will not impact scoring; reported answer options in this field are validated individually, but scores will not be aggregated.

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

Points are contingent upon validity of the supporting evidence.

References

Better Building Partnership

Leasing Lifecycle Tool

Green Lease Library and Green Lease Leaders Recognition Program.

SASB-Real Estate Owners, Developers & Investment Trusts, March 2016: IF0402-10

1 point , IM, E

Indicator aligned with PRI Reporting Framework 2018, Direct Property, PR 13

Intent

This Indicator examines management practices and controls used to monitor tenant compliance with specific ESG requirements established by the landlord. Best practice leases are becoming more common in the real estate sector. This indicator focuses on improving the extent of implementation of best practice leases and how real estate companies and portfolio managers monitor their existence throughout their portfolio.

Terminology

Compliance: Actions or performance consistent with sustainability-specific requirements in lease contracts.

Sustainability-specific requirements: This answer option refers to any sustainability requirements that the company or fund has included in its contracts with its suppliers and/or external property/asset managers.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Open text box: Explain the internal monitoring process in place during the reporting period and possibly prior to that. This description should include (1) scope of the compliance monitoring (type of information/data monitored), (2) how and through which channels the information is collected (e.g. monthly reporting), structured and interpreted for monitoring purposes as well as (3) consequences in case of non-compliance (e.g. resolution process).

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Full, partial or no points are awarded to open text box responses. Responses are scored according to the requirements above.

Community

2018 Indicator

3 points , IM, S

Indicator aligned with PRI Reporting Framework 2018, Direct Property, PR 14

Intent

This indicator examines the strategies used by the entity to support communities associated with its operations. A structured and comprehensive approach to community engagement demonstrates the extent of integration of community engagement issues into the entity’s overall strategy.

Terminology

Assistance or support in case of disaster: Financial, social or other assistance required to respond to disaster situations, such as the formation of a disaster response team and training.

Community: Persons or groups of people living and/or working in any areas that are economically, socially or environmentally impacted (positively or negatively) by the organization’s operations.

Community concerns: Issues of importance raised by the community, that are causing social, mental or other distress.

Community engagement: Community engagement refers to the communication, interaction, and formation of relationships between the entity and those groups.

Enhancement programs: Programs designed to improve public spaces to increase accessibility and livability, and encourage greater community interaction and well-being.

Health and well-being program: Program designed to address and increase the health and wellbeing of the local community.

Public spaces: Refers to spaces that are open and accessible to the public for social and recreational use.

Research and network activities: Activities and events organized for/with groups and members of the local community for the purpose of research and networking.

Resilience: Preparedness of the built environment towards existing and future climate changes (i.e., the ability to absorb disturbances such as increased precipitation or flooding while maintaining its structure). This can be achieved by management policies, informational technologies, educating tenant, community, suppliers and physical measures at the asset level.

Supporting charities and community groups: Providing financial, social or other support to local community groups and charities.

Sustainability education program: A program designed to increase awareness and Knowledge of sustainability within the community.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Other: State the alternative topic included in community engagement. It is possible to report multiple other answers.

Open text box: The open text box will not be used for scoring, but will appear in the Benchmark Committee for reporting purposes. Describe the community engagement program and the monitoring process. The description should refer to the applicable topics included in the community engagement program and elements below:

  1. Program objectives
  2. Examples of specific activities/projects
  3. Scope of the activities/projects

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded to each selected checkbox option and are then aggregated to calculate the indicator’s final score.

Reporting multiple other answers will not impact scoring; reported answer options in this field are validated individually, but scores will not be aggregated.

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

References

EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017: 5.9

1.5 points , IM, S

Indicator aligned with PRI Reporting Framework 2018, Direct Property, PR 14

Intent

This indicator examines the areas considered by the entity to understand its impact on social and environmental conditions in communities associated with its operations. The operation of real estate assets can have positive or negative impacts on the local community. These impacts will often differ per property type. Monitoring helps an organization manage the impact of the operation of an asset on the community.

Terminology

Crime levels: The impact of the use of the asset and related facilities/direct surroundings on crime levels. For example, inadequate lighting or security may lead to increased crime levels including vandalism and theft.

Housing affordability: Affordable housing refers to housing units that are affordable by the low-income section of society (for example, whose income is below the median household income).

Livability score: A score designed to measure the standard of living, typically within a city.

Local income generated: Contributing to local economic benefits, and creating business diversity and opportunities for economic development and innovation. For example, providing tax revenues.

Local residents’ well-being: Includes health and safety of local residents that may be impacted by the asset’s operation. For example, noise pollution issues.

Monitoring: A structured approach towards measuring and managing the impact of community engagement projects on the local community.

Walkability score: A score designed to measure the walkability of a given address. In this context, within the surrounding community.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Other: State the other impact measure that is monitored. It is possible to report multiple other answers.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded to each selected checkbox option and are then aggregated to calculate the indicator’s final score.

Reporting multiple other answers will not impact scoring; reported answer options in this field are validated individually, but scores will not be aggregated.

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

References

EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017: 5.9

RobecoSAM Corporate Sustainability Assessment, 2017: 3.7.2, Valuation disclosure

Green Star, Communities PILOT Version 0.1

Health and Well-being

2018 Indicator

2 points , IM, S

Intent

The intent of this indicator is to evaluate the presence and extent of an organizational program for promoting employee health and well-being. A complete process to promote employee health and well-being contains needs assessment, goal setting, action and monitoring. Such a process helps organizations take systematic action to create value and manage risks.

Terminology

Employee(s): Either the entity’s employees or the organization’s employees whose primary responsibilities include the operation or support of the entity.

Employee surveys on health and well-being: Written documents containing questions covering health and well being indicators or physical inspections on health and well-being issues. Topics covered can include, but are not limited to: personal health and well being, medical assistance at the workplace and housekeeping.

Physical and/or mental health checks: Physical and/or mental assessments of employees by a medical professional. Examples can include, but are not limited to: eye checks, cholesterol and blood pressure monitoring.

Health and well-being needs assessment: Process to identify and understand the health and well-being needs of a specific population. The purpose of a needs assessment is to assess the health & well-being status of the relevant population, including both risks and opportunities for improvement, and use this information to prioritize interventions to promote employee health & well-being. The absence of this information increases the likelihood of inefficient or non-targeted actions.

Health and well-being goal setting: The establishment of goals to promote the health and well-being of a specific population. Goals should be informed by the health and well-being needs assessment. Health and well-being goals might be focused on improving specific health determinants (environmental, social) and/or on improving population health outcomes.

Health and well-being action: Action to promote the health and well-being of a specific population and meet the established health and well-being goals. Actions can be taken through the design, construction and operation of buildings as well as through health programs.

Health and well-being monitoring:Mechanism to observe progress made towards achieving the established health and well-being goals for a specific population. This involves monitoring the operational outcomes of an entity’s actions to promote health & well- being of a specific population. Monitoring performance and outcomes provides feedback to understand, implement, and improve the effectiveness of interventions in order to progress towards health and well-being goals.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Percentage of employees: The percentage of employees offered to do a check or participate in a survey, etc.

Other: State the type of health and well-being check. It is possible to report multiple other answers.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting Level:

  1. Entity: related specifically to the named entity, where entity is defined as the investable portfolio for which you are submitting an Assessment response.
  2. Investment Manager: related to the investment management organization or company of which the participating entity forms a part.
  3. Group: related to the group of companies of which the participating entity forms a part.

Evidence

Document upload or document name and date. The evidence should sufficiently support all the items selected for this question. In the absence of an upload, providing the document name AND date of publication is mandatory, and you may be asked to disclose the document to GRESB as part of the validation process.

Examples of evidence may include, but not limited to, a narrative description of the organization’s process, a sample survey illustrating primary data collection, a description of the entity's health promotion goals and associated actions, a description of the entity’s monitoring strategy or a consultant’s report on the entity’s monitoring activities. Acceptable evidence must provide specific information about each selected option.

Scoring

Points are awarded based on (1) selected health and well-being processes and (2) (if applicable) average percentage of employees.

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

Reporting multiple other answers will not impact scoring; reported answer options in this field are validated individually, but scores will not be aggregated.

Points are contingent upon validity of the supporting evidence.

Not scored , IM, S

Intent

The intent of this indicator is to evaluate the scope and quality of the organization’s employee health and well-being program.

Terminology

Social health and well being:Social health and well-being relates to feelings of belonging and social inclusion. Determinants of social health and well-being within the built environment include design features meant to promote social cohesion such as common spaces.

Mental health and well-being: Mental health is defined as a state of well-being in which every individual realizes his or her own potential, can cope with the normal stresses of life, can work productively and fruitfully, and is able to make a contribution to her or his community.

Access to medical care:Access to health services, including preventive services such as disease screenings and vaccinations. This could include the provision of such services in or around the workplace and/or access to such services through employer-provided or government-provided healthcare programs; as well as, preferentially selecting tenants based on the needs of the surrounding community and/or allowing the entity’s assets to be used for health fairs or expos open to the surrounding community.

Note: offering health insurance to employees can be considered as a form of providing access to physical/mental health care.

Access to mental health care:Access to mental health services, including services such as depression screenings and counseling services. This could include the provision of such services in or around the workplace and/or access to such services through employer-provided or government-provided healthcare programs; as well as, preferentially selecting tenants based on the needs of the surrounding community and/or allowing the entity’s assets to be used for health fairs or expos open to the surrounding community.

Note: offering health insurance to employees can be considered as a form of providing access to physical/mental health care.

Acoustic comfort:Minimizing sound to promote mental well-being and in some instances, physical ear health. This could include building design and materials selection to promote acoustic comfort for employees and efforts to protect the ear health of construction and industrial workers; as well as, building design and materials selection to promote acoustic comfort for tenants, mechanisms to limit noise disturbances in communities surrounding the entity’s assets during both construction and operations.

Biophilic design:Design that draws upon the innate connection between humans and nature. This includes direct connections with nature, access to views, place-based design and interior design that includes plants, water and/or symbolic connections to nature through images, colors, and shapes.

Inclusive design:Design that accommodates individuals of different religions, genders and gender identities, ages, ethnicities and ability levels. This could include the provision of multi-faith space, lactation room, age-friendly design and/or accessible design.

Indoor air quality:The physical or biological characteristics of air within buildings. Indoor air quality (IAQ) is typically the product of outdoor quality mediated by the design and operation of building systems.

Indoor environmental quality metrics: Measures of indoor environmental quality including measures of air quality, thermal comfort, acoustics, and lighting.

Operational performance:Elements of health & well-being observed during the day-to-day operations of a company, fund or asset (e.g., productivity, absenteeism, etc.).

Social interaction:The provision of common spaces to promote social cohesion such as a café area, courtyard, garden, and/or activities that promote social interaction such as employee appreciation days, lunchtime policies, etc.

Social and economic determinants of health:Social and economic determinants of health are the conditions in which people are born, grow, live, work and age. Relevant examples of social determinants of health include access to healthy foods and opportunities for physical activity. Relevant examples of economic determinants of health include opportunities for employment and education status.

Thermal comforts:The thermal environment including air temperature, speed and humidity can impact employee thermal comfort. Research suggests that thermal comfort contributes to employee productivity and well-being.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Percentage of employees: The percentage of employees offered to do a check or participate in a survey, etc.

Other: State the type of health and well-being check. It is possible to report multiple other answers.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting Level:

  1. Entity: related specifically to the named entity, where entity is defined as the investable portfolio for which you are submitting an Assessment response.
  2. Investment Manager: related to the investment management organization or company of which the participating entity forms a part.
  3. Group: related to the group of companies of which the participating entity forms a part.

Scoring

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

1.5 points , IM, S

Intent

The intent of this indicator is to evaluate the presence and extent of an organizational program for promoting health and well-being through its real estate assets and services. A complete process to promote tenant, customer and community health and well-being contains needs assessment, goal setting, action and monitoring. Such a process helps organizations take systematic action to create value and manage risks.

Terminology

Health and well-being needs assessment: Process to identify and understand the health and well-being needs of a specific population. The purpose of a needs assessment is to assess the health & well-being status of the relevant population, including both risks and opportunities for improvement, and use this information to prioritize interventions to promote employee health & well-being. The absence of this information increases the likelihood of inefficient or non-targeted actions.

Health and well-being goal setting: The establishment of goals to promote the health and well-being of a specific population. Goals should be informed by the health and well-being needs assessment. Health and well-being goals might be focused on improving specific health determinants (environmental, social) and/or on improving population health outcomes.

Health and well-being action: Action to promote the health and well-being of a specific population and meet the established health and well-being goals. Actions can be taken through the design, construction and operation of buildings as well as through health programs.

Health and well-being monitoring:Mechanism to observe progress made towards achieving the established health and well-being goals for a specific population. This involves monitoring the operational outcomes of an entity’s actions to promote health & well- being of a specific population. Monitoring performance and outcomes provides feedback to understand, implement, and improve the effectiveness of interventions in order to progress towards health and well-being goals.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Evidence:Document upload or document name and date. The evidence should sufficiently support all the items selected for this question. In the absence of an upload, providing the document name AND date of publication is mandatory, and you may be asked to disclose the document to GRESB as part of the validation process. Examples of evidence may include, but not limited to, a narrative description of the organization’s process, a sample survey illustrating primary data collection, a description of the entity's health promotion goals and associated actions, a description of the entity’s monitoring strategy or a consultant’s report on the entity’s monitoring activities. Acceptable evidence must provide specific information about each selected option.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting Level:

  1. Entity: related specifically to the named entity, where entity is defined as the investable portfolio for which you are submitting an Assessment response.
  2. Investment Manager: related to the investment management organization or company of which the participating entity forms a part.
  3. Group: related to the group of companies of which the participating entity forms a part.

Not scored , IM, S

Intent

The intent of this indicator is to evaluate the scope and quality a program for promoting health and well-being through an entity’s real estate assets and services.

Terminology

Social health and well being:Social health and well-being relates to feelings of belonging and social inclusion. Determinants of social health and well-being within the built environment include design features meant to promote social cohesion such as common spaces.

Mental health and well-being: Mental health is defined as a state of well-being in which every individual realizes his or her own potential, can cope with the normal stresses of life, can work productively and fruitfully, and is able to make a contribution to her or his community.

Access to medical care:Access to health services, including preventive services such as disease screenings and vaccinations. This could include the provision of such services in or around the workplace and/or access to such services through employer-provided or government-provided healthcare programs; as well as, preferentially selecting tenants based on the needs of the surrounding community and/or allowing the entity’s assets to be used for health fairs or expos open to the surrounding community.

Note: offering health insurance to employees can be considered as a form of providing access to physical/mental health care.

Access to mental health care:Access to mental health services, including services such as depression screenings and counseling services. This could include the provision of such services in or around the workplace and/or access to such services through employer-provided or government-provided healthcare programs; as well as, preferentially selecting tenants based on the needs of the surrounding community and/or allowing the entity’s assets to be used for health fairs or expos open to the surrounding community.

Note: offering health insurance to employees can be considered as a form of providing access to physical/mental health care.

Acoustic comfort:Minimizing sound to promote mental well-being and in some instances, physical ear health. This could include building design and materials selection to promote acoustic comfort for employees and efforts to protect the ear health of construction and industrial workers; as well as, building design and materials selection to promote acoustic comfort for tenants, mechanisms to limit noise disturbances in communities surrounding the entity’s assets during both construction and operations.

Biophilic design:Design that draws upon the innate connection between humans and nature. This includes direct connections with nature, access to views, place-based design and interior design that includes plants, water and/or symbolic connections to nature through images, colors, and shapes.

Inclusive design:Design that accommodates individuals of different religions, genders and gender identities, ages, ethnicities and ability levels. This could include the provision of multi-faith space, lactation room, age-friendly design and/or accessible design.

Indoor air quality:The physical or biological characteristics of air within buildings. Indoor air quality (IAQ) is typically the product of outdoor quality mediated by the design and operation of building systems.

Indoor environmental quality metrics: Measures of indoor environmental quality including measures of air quality, thermal comfort, acoustics, and lighting.

Operational performance:Elements of health & well-being observed during the day-to-day operations of a company, fund or asset (e.g., productivity, absenteeism, etc.).

Social interaction:The provision of common spaces to promote social cohesion such as a café area, courtyard, garden, and/or activities that promote social interaction such as employee appreciation days, lunchtime policies, etc.

Social and economic determinants of health:Social and economic determinants of health are the conditions in which people are born, grow, live, work and age. Relevant examples of social determinants of health include access to healthy foods and opportunities for physical activity. Relevant examples of economic determinants of health include opportunities for employment and education status.

Thermal comforts:The thermal environment including air temperature, speed and humidity can impact employee thermal comfort. Research suggests that thermal comfort contributes to employee productivity and well-being.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Other: State the type of health and well-being check. It is possible to report multiple other answers.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting Level:

  1. Entity: related specifically to the named entity, where entity is defined as the investable portfolio for which you are submitting an Assessment response.
  2. Investment Manager: related to the investment management organization or company of which the participating entity forms a part.
  3. Group: related to the group of companies of which the participating entity forms a part.

Scoring

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

New Construction & Major Renovations

Intent and Overview

This Aspect addresses the entity’s efforts to address ESG-issues during the design, construction, and renovation of buildings. The built environment has a significant impact on ecological systems as well as the health, safety and welfare of communities. In addition, construction activities consume resources such as water and natural materials, while the construction process generates large quantities of waste. Integrating sustainability into construction activities can help mitigate this negative impact, and at the same time improve the environmental efficiency of buildings in the operational phase. By implementing sustainable best practices in construction activities, organizations can also positively impact local communities.

Before you start with this Aspect, note that:

This section should only be completed if the entity is involved in development of new construction (building design, site selection and/or construction) and/or major renovation projects, and had on-going projects or completed projects during the reporting period.

Major renovations: Alterations that affect more than 50 percent of the total building floor area or cause relocation of more than 50 percent of regular building occupants. Major Renovation projects refer to buildings that were under construction at any time during the reporting period.

New construction: Includes all activities to obtain or change building or land use permissions and financing. Includes construction work for the project with the intention of enhancing the property’s value. Development of new buildings and additions to existing buildings that affect usable space can be treated as new constructions and reported in RC-NC1. New Construction projects refer to buildings that were under construction at any time during the reporting period.

Reporting in this Aspect should be based on the new development and major renovations projects reported in RC-NC1 and RC-NC2.

Sustainability Requirements

2018 Indicator

1 point

Intent

This indicator is intended to describe the entity’s sustainability strategy for new construction and major renovation projects. A well-defined sustainability strategy for new construction and major renovation projects helps organizations to identify material issues and focus areas during the different phases of these projects.

Terminology

Biodiversity and habitat: Issues related to wildlife, endangered species, ecosystem services, habitat management, and relevant topics. Biodiversity refers to the variety of all plant and animal species. Habitat refers to the natural environment in which these plant and animal species live and function.

Building safety: Environmental issues with the potential to create or exacerbate risks to human safety, such as structural failure.

Climate change adaptation: Preparation for long-term change in climatic conditions or climate related events. Example of climate change adaptation measures can include, but are not limited to: building flood defenses, xeriscaping and using tree species resistant to storms and fires, adapting building codes to extreme weather events.

Energy consumption/management: Fuel consumption or management of energy from renewable and non-renewable sources.

Environmental attributes of building materials: Life-cycle environmental characteristics of the building materials, such as embodied carbon or water

GHG emissions/management: GHG management refers to the management of GHG emissions. GHGs refers to the seven gases listed in the GHG Protocol Corporate Standard: carbon dioxide (CO2); methane (CH4); nitrous oxide (N2O); hydrofluorocarbons (HFCs); perfluorocarbons (PFCs); nitrogen trifluoride (NF3) and sulphur hexafluoride (SF6).

Health and well-being: “Health is a complete state of physical, mental and social well-being, not merely the absence of disease or infirmity”(WHO). Health & well-being is impacted by genetics and individual behavior as well as environmental conditions. Particularly relevant to GRESB stakeholders are the social determinants of health, which are the “conditions in which people are born, grow, work, live and age, and the wider set of forces and systems shaping the conditions of daily life.” These are the conditions that enable or discourage healthy living. This could include issues such as physical activity, healthy eating, equitable workplaces, maternity and paternity leave, access to healthcare, reduction in toxic exposures, etc.

Location and transportation: Location of a building in relation to pedestrian, bicycle, and mass transit networks, and existing infrastructure and amenities in the surrounding area.

Resilience: Preparedness of the built environment towards existing and future climate changes (i.e., the ability to absorb disturbances such as increased precipitation or flooding while maintaining its structure). This can be achieved by management policies, informational technologies, educating tenant, community, suppliers and physical measures at the asset level.

Supply chain: Sequence of activities or parties that provide products or services to the entity.

Sustainability strategy: Strategy which (1) sets out the participant’s procedures and (2) sets the direction and guidance for an organization’s implementation of sustainability measures.

Water consumption/management: Planning, developing, distributing and managing the optimum use of water resources.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Other: State the sustainability/ESG element included in the strategy. It is possible to add multiple other answers.

Open text box: The content of this open text box is not used for scoring, but will be included in the Benchmark Report. Participate may use this open text box to communicate on

  1. Specific description of the strategy, objectives and approach;
  2. The Strategy should apply to the entity level and should address all the elements selected from the list;
  3. Scope of implementation (e.g., all projects, some projects, select demonstrations).

Evidence: Document upload or hyperlink. The evidence should sufficiently support all the items selected for this question. If a hyperlink is provided, ensure that it is not outdated and the relevant page can be accessed within two steps.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded to each selected checkbox option and are then aggregated to calculate the indicator’s final score.

Reporting multiple other answers will not impact scoring; reported answer options in this field are validated individually, but scores will not be aggregated.

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

The reported answer options are validated based on the provided evidence, and points are contingent upon validity of the supporting evidence.

The public availability of the sustainability strategy is credited with 0.5 points.

References

LEED BD+C: New Construction v4, Sustainable Sites, Location and Transportation

3 points

Intent

This indicator examines the entity’s approach to sustainable site selection. Sustainable site selection helps to conserve land and protect farmland and wildlife habitat. The site selection process should be based on structured, predefined methodologies that include limits on the development of inappropriate sites or projects with a negative impact on the immediate surroundings, and on the environment in general.

Terminology

Aquatic ecosystems: Ecosystems such as coastal and riparian areas, wetlands and deepwater habitats that provide critical ecosystem functions for aquatic organisms, other wildlife and people.

Farmland: Agricultural land, designated as such by a national, local, or intergovernmental authority (e.g., US Department of Agriculture, US Food and Agriculture Organization, Australian Department of Agriculture and Water Resources, French Ministry of Agriculture, Agrifood and Forestry).

Floodplain functions: A floodplain is an area of land adjacent to types of waterways and watercourses (e.g., a stream or a river) that experience flooding during periods of high discharge. It functions as water storage, protects habitat and benefits water quality.

Habitats for threatened and endangered species: Areas that contain habitat for plant and animal species identified as threatened or endangered by a national or intergovernmental authority (e.g., US Fish and Wildlife Service, Australian Department of Environment, EU Habitats Directive, European Red List of Threatened Species, and International Union for the Conservation of Nature).

Locate projects within existing developed areas: Locate projects in existing previously developed areas or areas of infill.

Multi-modal transit networks: Pedestrian, bicycle, and mass-transit networks.

Redevelop brownfield sites: Brownfield sites are areas of land or premises that have been previously used, but has subsequently become vacant, derelict or contaminated. Brownfield sites typically require preparatory regenerative work before any new development goes ahead, and can also be partly occupied.

Requirements

Select yes or no. If yes, select all applicable sub-options.

(1) site selection criteria in place (2) alignment with third-party guidelines and/or rating systems, (3) selection requirements.

Other: State the topic included in the site selection assessment.Criteria must be related to the site selection process for new construction projects. It is possible to add multiple other answers.

Third-party guidelines: Specify the applicable guidelines. Examples include, but are not limited to: Sustainable Design Guidelines, such as Port Authority of New York & New Jersey or individual companies. These are not rating systems and do not have provisions for certification. However, they can be used to inform project development and delivery.

Third-party rating system: Specify the applicable scheme(s)/sub-schemes(s). Examples include, but are not limited to: BREEAM International, New Construction; LEED v4, Building Design & Construction.

Evidence: Document upload or document name and date. The evidence should sufficiently support all the items selected for this question. In the absence of an upload, providing the document name AND date of publication is mandatory, and you may be asked to disclose the document to GRESB as part of the validation process.

If applicable, the evidence must provide information about alignment with third-party standards or rating systems.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded based on (1) selected answer options and validity of provided other answers, (2) validity of third party rating systems and/or guidelines or other alignment as well as (3) the validity of the evidence based on the requirements stated above.

Reporting multiple other answers will not impact scoring; reported answer options in this field are validated individually, but scores will not be aggregated.

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

References

SITES v2 Rating System for Sustainable Land Design and Development

LEED BD+C: New Construction, v4, Sustainable Sites, and Location & Transportation

BREEAM International New Construction, 2013; and BREEAM Communities Manual, 2012

1.5 points

Indicator aligned with PRI Reporting Framework 2018, Direct Property, PR 09

Intent

Sustainable site development requirements help to minimize the negative direct and indirect impact of construction sites.

Terminology

Manage waste by diverting construction and demolition materials from disposal: Support a low waste construction site and minimize down-cycling of materials with actions such as diverting, reusing or recycling construction and demolition materials.

Manage waste by diverting reusable vegetation, rocks, and soil from disposal: Minimize the disposal of reusable vegetation, minerals, rocks and soil with actions such as using these materials as resources in site design or to produce compost.

Protect air quality during construction: Protect air quality and reduce pollution by using construction equipment that reduces emissions of localized air pollutants and greenhouse gasses.

Protect surface water and aquatic ecosystems by controlling and retaining construction pollutants: Protect receiving waters (including surface water, groundwater, and combined sewers or stormwater systems) with measures such as the creation and implementation of a stormwater pollution prevention plan or erosion and sedimentation control plan.

Protect and restore habitat and soils disturbed during construction and/or during previous development: Support healthy plants, biological communities, water storage, and infiltration with actions such as the protection of on-site habitat, restoring disturbed soils, and supporting off-site land conservation.

Requirements

Select yes or no. If yes, select all applicable sub-options.

(1) site design/development criteria (2) alignment of site design/development criteria.

Other: State the sustainable site design/development requirement. It is possible to add multiple other answers. Other answers include, but are not limited to “Reduce heat island effect”, “Reduce light effect”, “Manage storm water”, etc.

Third-party rating system: Specify the applicable scheme(s)/sub-schemes(s). Examples include, but are not limited to: BREEAM International, New Construction, LEED v4, Building Design & Construction.

Third-party guidelines: Specify the applicable guidelines.

Evidence: Document upload or document name and date. The evidence should sufficiently support all the items selected for this question. In the absence of an upload, providing the document name AND date of publication is mandatory, and you may be asked to disclose the document to GRESB as part of the validation process.

If applicable, the evidence must provide information about alignment with third-party standards or rating systems.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded based on (1) selected answer options and validity of provided other answers, (2) validity of third party rating systems and/or guidelines or other alignment as well as the validity of the evidence based on the requirements above.

Reporting multiple other answers will not impact scoring; reported answer options in this field are validated individually, but scores will not be aggregated.

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

References

SITES v2 Rating System for Sustainable Land Design and Development

LEED BD+C: New Construction, v4, Sustainable Sites; and Materials & Resources

BREEAM International New Construction, 2013, 04 Management; and 11 Land Use; and BREEAM Communities Manual, 2012

Materials and Certifications

2018 Indicator

2.5 points

Intent

This Indicator examines the entity’s strategy to understand and manage health and environmental risks associated with building material supply chains. Including environmental and health requirements in the selection of construction materials assists organizations with conserving resources, reducing waste and limiting the impact (including embodied carbon) of new buildings. It also mitigates health risks associated with the use of harmful materials.

Terminology

Environmental Product Declarations: Products and materials for which life-cycle information is publicly available and which have positive, sustainable, life-cycle impacts. An Environmental Product Declaration should conform to ISO 14025, 14040, 14044, EN 15804 or ISO 21931, or have publicly available, critically reviewed life-cycle assessment, confirming to ISO 14044.

Health and environmental information: Fully disclosed and publicly available information about the human health and environmental impacts or characteristics of the products or materials used. (e.g., MSD sheets)

Health Product Declarations: Products and materials for which the inventory of all ingredients used is publicly available, with a full disclosure of all known hazards and associated effects.

Locally extracted or recovered: Materials that are extracted, harvested or recovered within a specified distance from the construction site.

Low embodied carbon materials: Embodied carbon is the sum of all the carbon required to produce materials, considered as if that carbon was incorporated or embodied in the product itself. Also known as “low embodied energy materials.”

Rapidly renewable materials: Materials made from agricultural products that are typically harvested within a 10-year or shorter cycle, such as bamboo, wool, cotton insulation, agrifiber, linoleum, wheatboard, strawboard and cork.

Recycled content materials: Products made from pre-consumer and/or post-consumer material diverted from the waste stream.

Third-party certified wood-based materials and products: Certification that encourages responsible and sustainable forest management. Certification bodies include, but are not limited to:

  • Forest Stewardship Council (FSC);
  • Programme for the Endorsement of Forest Certification (PEFC);
  • Sustainable Forestry Initiative (SFI).

Requirements

Select yes or no. If yes, select all applicable sub-options.

Other:

  1. Other types of health and environmental information: State the type of health and environmental information.
  2. Other: State the building product specification.

Types of third-party certification used: Specify the third-party certification.

Evidence: Document upload or document name and date. The evidence should sufficiently support all the items selected for this question. In the absence of an upload, providing the document name AND date of publication is mandatory, and you may be asked to disclose the document to GRESB as part of the validation process.

Depending on the selected answer options, the document upload can represent a:

  1. Copy of the entity’s formal policy with respect to environmental attributes and performance of building materials, including specific information about individual requirements (e.g., red list) AND/OR
  2. Copy of the entity’s policy with respect to health attributes and performance of building materials AND/OR
  3. Copy of specific requirements for disclosure of health and environmental attributes from suppliers (e.g., embodied carbon, etc.) AND/OR
  4. Copy of specific building product specifications or certificates AND
  5. Information about compliance procedures (e.g., reporting, audit, job site accountability).

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded based on (1) selected answer options and validity of provided other answers, (2) validity of third party rating systems and/or guidelines or other alignment as well as (3) the validity of the evidence based on the requirements stated above.

Reporting multiple other answers will not impact scoring; reported answer options in this field are validated individually, but scores will not be aggregated.

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

References

LEED BD+C: New Construction, v4, Materials & Resources

BREEAM, International New Construction, 2013: 09 Materials

SCS Ecolabels, Recycled Content, V6-0 Standard

ISO 14021, Environmental labels and declarations

GRI Sustainability Reporting Standards, 2016: GRI 301; 301-1; 301-2; 301-3

2 points

Intent

This indicator is focused on green building rating standards utilized as part of the construction or major renovation process. Green building standards provide a measure of the intrinsic quality of the asset and its design in order to meet environmental standards requirements. Building certifications provide external assurance on the sustainability performance of an asset.

Terminology

Green building rating standard: A rating system/certificate for real estate assets that uses a wide set of environmental criteria. Successful completion of the rating assessment typically results in the award of a certificate that records (a) the completion of the rating assessment process and (b) the level achieved.

Level of certification: The level achieved with successful completion of the rating scheme.

Requirements

Select year or no. If yes, also (1) select all applicable sub-options (2) select portfolio coverage and (3) specify:

  1. Green building standard: include all applicable green building rating systems AND/OR
  2. Green building certificates: include all applicable green building certificates AND/OR
  3. Level of certification: include all applicable rating systems and levels adopted as a standard by the entity.

The full list of recognized green building certifications is provided in the Real Estate Reference Guide Appendix 3a.

Portfolio coverage: Portfolio coverage is calculated based on floor area. The numerator is the floor area of to which the selected answer option applies. The denominator is the total floor area of all NC&MR projects as reported in RC-NC1.1 and RC-NC2.1.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded based on (1) selected answer options (2) percentage portfolio coverage and (3) validity of reported green building rating systems and/or certificates.

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

5 points

Intent

This indicator is focused on green building rating standards utilized as part of the construction or major renovation process. Green building standards provide a measure of the intrinsic quality of the asset and its design in order to meet environmental standards requirements. Building certifications provide external assurance on the sustainability performance of an asset.

Terminology

Green Building Certificate: Recognition that a project has received a green building rating. A certificate indicates the name and location of the project, version of the rating system, date of certification, and level of recognition.

Level of certification: The level achieved with successful completion of the rating scheme.

Number of certified assets: The number of assets within the total portfolio for which green building certificates were obtained for projects (a) that are complete and/or (b) were in progress at the end of the reporting period.

Scheme name: The name of the Green Building Certification scheme.

Sub-scheme name: A Green Building Certificate’s sub-category to a Scheme name used to certify a particular property type and/or to specify the type of building certificate (whether a Green Building Certificate is an Operational Green Building Certificate or a New Construction Green Building Certificate).

Requirements

Select yes or no. If yes, select all applicable sub-options.

Scheme name and sub-scheme name: Select from the dropdown list or add a new scheme name and a sub-scheme name (if applicable).

Only include building design and construction certifications. The full list of recognized green building certifications is provided in the Real Estate Reference Guide Appendix 3a.

Note: If you cannot find a Scheme in the dropdown list and want to add a new scheme name and/or sub-scheme name, please contact the GRESB Helpdesk. You are also required to answer a set of additional questions about the scheme. These questions are not scored, but they are required for GRESB’s data validation process.

Only include green building certificates that were awarded before or during the reporting period. Participants may list pre- or interim- assessments conducted by the official certification authority, but this needs to be designated in the scheme name. Pre-assessments and other unofficial forms of pre-certification are not valid.

Some green building certificates are valid for a limited period only – the certificate should be effective and official during the reporting period.

Projects registered to obtain a green building certificate: Report projects that have registered with the certification body to obtain (but not yet achieved) a green building certificate by the end reporting period.

Projects that obtained a green building certificate: Report projects that have obtained a green building certificate by the end of the reporting period

Portfolio coverage: Portfolio coverage is calculated based on floor area. The numerator is the floor area of to which the selected answer option applies. The denominator is the total floor area of all NC&MR projects as reported in RC-NC1.1 and RC-NC2.1. Projects with multiple standard requirements should only report once, using the green building certification scheme that is on the most stringent in the region in which the project is located. The total combined portfolio coverage cannot exceed 100%.

Number of certified projects: The number should be smaller than or equal to the number of reported assets in RC-NC1.1 and RC-NC2.1.

Scoring

Each reported certification is validated and given one out the following four validation statuses which determine a scoring weight for each coverage percentage:

  • Full Points: 1.0
  • Partial(+): 0.6
  • Partial(-): 0.3
  • No Points: 0

Each coverage percentage is multiplied by its associated weight and then summed up to give an overall coverage percentage. This coverage percentage is then benchmarked against other coverage percentages from new construction and major renovation portfolios.

References

EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017: Cert-Tot, CRE8

Energy Efficiency

2018 Indicator

3 points

Intent

This Indicator is intended to describe the entity’s strategy to integrate energy efficiency measures throughout design and construction activities. Implementing energy efficiency measures in the design and construction of a building contributes to reducing the energy consumption of the building during the operational phase.

Terminology

Air conditioning: Refers to energy efficient air-conditioning units, such as those rated with a high energy efficiency rating, and secondary measures to promote efficiency, such as strategic location and integration into building functionality design.

Commissioning: Quality-orientated review and verification process during the design and construction phase, to ensure that the performance of facilities, systems and assemblies meet defined objectives during the operational phase.

Energy codes or standards: Energy requirements set in building codes and standards such as US Energy Efficiency standards and International Energy Conservation Code (2012).

Energy modeling: Refers to a virtual or computerized simulation of a building that can be used to estimate the energy use of a building and evaluate its energy efficiency.

Energy use analytics: Analysis of energy use to determine discrepancies between baseline and actual energy use. Energy use analytics help determine whether energy use targets are reached, and can highlight opportunities to improve energy efficiency.

Integrative design: A design process that considers and involves multiple aspects, stakeholders and functions, instead of addressing each separately, to align and achieve objectives.

Lighting: Energy efficient lighting refers to units such as those rated with a high-energy efficiency rating. Common energy efficient lighting includes: LEDs, CFLs and halogen incandescents. It also includes aspects such as sensors, timers, and the promotion of natural daylight, to reduce the amount of light energy consumed.

Occupant controls: Individual controls for heating, cooling and other building systems. They support individual comfort of building occupants, while reducing energy consumption. Occupant controls also enable occupants to respond rapidly to alleviate discomfort when it is experienced.

Operational energy efficiency monitoring: Monitoring of energy consumed during the operational phase of a building. The operational energy consumption of buildings leads to substantial environmental impact. Monitoring consumption is an important basis for reducing this impact.

Post-construction energy monitoring: Monitoring of energy consumption during the operational phase of the building, to identify that energy use objectives are being met.

Requirements for planning and design: Legislative requirements such as planning obligations, building codes and standards.

Space heating: Energy efficient space heating systems for internal spaces within a building. This includes energy efficient mechanical systems, and maximizing the maintenance of internal heating via insulation, seals and windows and doors

Sub-meter: A system that allows the measurement of utility use by an individual occupant within a multi-tenant property, such as individual electricity meters.

Ventilation: The process of supplying and removing air through an indoor space. Energy efficient ventilation refers to the use of efficient mechanical or natural ventilation systems.

Water heating: Energy efficient water heating systems such as those with a high-energy efficiency rating, including those which are demand-based, that do not lose energy on stand-by heating. Also includes efficient hot water distribution systems to reduce energy losses throughout the building.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Other:

  1. Requirements for planning and design: Describe the entity’s requirement for planning and design. Energy efficiency measures: State the energy efficiency measure.
  2. Performance verification: Describe the entity’s actions to verify delivered performance.
It is possible to add multiple other answers.

Post-construction monitoring: If the entity has requirements on post-construction performance monitoring, please specify the required number of years. If the entity monitors performance for an infinite period, please enter “100”.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded based on (1) selected answer options for design, measures, and monitoring indicators and (2) validity of provided other answers.

Reporting multiple other answers will not impact scoring; reported answer options in this field are validated individually, but scores will not be aggregated.

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

References

SITES v2 Rating System

BREEAM, International New Construction, 2013: 09 Materials

LEED BD+C: New Construction, v4: Sustainable Sites and Materials & Resources

BREEAM International New Construction, 2013: 04 Management and 11 Land Use; and BREEAM Communities Manual, 2012

3 points

Intent

This Indicator intends to assess entity’s involvement in the design of on-site renewable energy generation. On-site renewable energy generation reduces environmental and economic impacts associated with fossil fuel energy use.

Terminology

Biofuels: Liquid of gaseous fuels, such as bioethanol and biodiesel, which are made from biomass.

Geothermal energy: Energy from heat generated by the earth’s matter (e.g. ground pump heating systems). This includes geothermal storage.

Hydro energy: Energy generated by the gravitational force of falling or flowing water.

On-site renewable energy: Any source of energy produced at the site that can be used without depleting reserves, including energy from the sun, wind, water and the earth’s core. Technologies should be available onsite, such as photovoltaic panels, wind turbines, transpired solar collectors, solar hot water heaters, small-scale hydroelectric power plants, ground pump heating systems, etc.

Solar/photovoltaic energy: Energy generated from solar heat and/or radiant light. This includes solar water heating. Photovoltaic energy results from the conversion of the sunlight by using solar panels or semiconductors.

Wind energy: Energy generated from wind power by using wind turbines.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Other: State the on-site renewable source. It is possible to add multiple other answers. Note that:

  1. On-site renewable sources do not include off-site generation, the use of green power, renewable energy credits (RECs) or carbon offsets.
  2. Co-generation and tri-generation systems are not seen as renewable energy sources. Although they may produce low-carbon energy, these systems typically use fossil fuels (e.g., natural gas).

Average design target for the fraction of total energy demand met with on-site renewable energy: Percentage of energy demand that by design should be provided by on-site renewable energy. The numerator is the total design capacity of all reported on-site renewable energy sources. The denominator is total energy demand for all projects reported in RC-NC1.1 and RC-NC2.1.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded based on (1) selected answer options and validity of provided other answer, (2) percentage of all projects.

Reporting multiple other answers will not impact scoring; reported answer options in this field are validated individually, but scores will not be aggregated.

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

In 2018, the average design target will be for reporting purposes only.

References

LEED BD+C: New Construction, v4, Energy & Atmosphere

BREEAM, International New Construction, 2013: 06 Energy

SASB-Real Estate Owners, Developers & Investment Trusts, March 2016: IF0402-02

1 point

Intent

This Indicator intends to examine the entity’s approach to define and achieve net-zero energy performance for its new construction and renovation projects. Net-zero energy (NZE) standards assist organizations with achieving zero greenhouse gas emissions, through energy-efficient design and the use of renewable energy technologies, on a net-zero energy basis. Net-zero standards are increasingly part of building codes.

Terminology

Net-zero energy: A net-zero energy building relies on energy-efficient design and renewable sources to produce as much energy as it consumes, usually measured over the course of a year.

Net Zero Site Energy: A site ZEB produces at least as much energy as it uses in a year, when accounted for at the site.

Net Zero Source Costs: In a cost ZEB, the amount of money the utility pays the building owner for the energy the building exports to the grid is at least equal to the amount the owner pays the utility for the energy services and energy used over the year.

Net Zero Source Energy: A source ZEB produces at least as much energy as it uses in a year, when accounted for at the source. Source energy refers to the primary energy used to generate and deliver the energy to the site. To calculate a building’s total source energy, imported and exported energy is multiplied by the appropriate site-to-source conversion multipliers.

Net Zero Energy Emissions: A net-zero emissions building produces at least as much emissions-free renewable energy as it uses from emissions-producing energy sources.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Standard Specify the full name of the referenced national and/or international standard on net-zero energy.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded based on (1) selected answer options and the validity of the provided other answers, (2) validity of reported standard, and (3) the percentage of projects covered.

References

LEED BD+C: New Construction, v4, Energy & Atmosphere

BREEAM, International New Construction, 2013: 06 Energy

National Renewable Energy Laboratory, 2006

ICC IECC: 2012 International Energy Conservation Code

International Energy Agency: SHC Task 40

EU countries' nearly zero-energy buildings national plans

Water Conservation and Waste Management

2018 Indicator

2 points

Intent

This Indicator intends to assess the entity’s strategy to water conservation through design and construction. Implementing water efficiency measures in the design and construction phases of a building contributes to reducing the water consumption of the building during the operational phase.

Terminology

Net-zero energy: A net-zero energy building relies on energy-efficient design and renewable sources to produce as much energy as it consumes, usually measured over the course of a year.

Drip/smart irrigation: Drip irrigation systems save water by irrigating, fertilizing and aerating trees, shrubs, plants and bushes directly at the roots. Smart irrigation systems save water by adjusting the watering schedule and amount of water used for irrigation based on a variety of factors and inputs, including weather, plant species and soil type.

Drought tolerant/low-water landscaping: Reduction of water use through landscaping characteristics such as areas requiring little to no irrigation.

Dry fixtures: Fixtures that do not require the use of water, such as composting toilet systems and waterless urinals.

Grey water: Wastewater generated from hand basins, showers and other water-using devices and equipment.

High-efficiency fixtures: Appliances and plumbing equipment that conserve water without compromising performance (also known as “ultra-low-flow” fixtures).

Indoor water: Water use that occurs within the constraints of the building interior.

Integrative design: A design process that considers and involves multiple aspects, stakeholders and functions, instead of addressing each separately, to align and achieve objectives.

Leak detection system: Systems that detect water leaks. Examples can include, but are not limited to: condensate water overflow, chiller water leaks, plumbing line cracks, heating/cooling piping leaks and outside seepage.

Non-potable applications: Use of non-potable water in applications such as toilet flushing and cooling tower make up water

Occupant sensors: Motion sensor devices that turn water fixtures on (or off) in response to the presence (or absence) of people.

On-site wastewater treatment: Process of water decontamination as a consequence of any anthropogenic, industrial or commercial use, before the water is released again into the environment or is re-used.

Operational water efficiency monitoring: Monitoring of water consumed during the in-use phase of a building’s life. The operational water consumption of buildings leads to substantial environmental impact. Monitoring consumption is an important basis for reducing this impact.

Outdoor water: Water use that occurs outside of the building structure.

Post-construction water monitoring: Monitoring of water consumption during the operational phase of the building, to identify that water conservation objectives are being met.

Process water: Water that is used for building systems and industrial processes, such as cooling towers, boilers, and chillers. It can also include water used for operational processes, such as dishwashing.

Requirements for planning and design: Legislative requirements such as planning obligations, building codes and standards.

Stormwater: Water that collects during precipitation, which can be stored on-site for eventual reuse for non-potable applications. Examples can include, but are not limited to: landscape irrigation and/or flush fixtures.

Sub-meter: A system that allows the measurement of utility use by an individual occupant within a multi-tenant property, such as individual electricity meters.

Water conservation: The standards, strategies and actions to manage and conserve water in a sustainable manner.

Water efficiency measures: Actions undertaken to reduce water consumption and improve efficient use of water as a sustainable resource.

Water supply: Provision of surface water, groundwater, rainwater collected directly or stored by the organization, waste water from another organization, municipal water supplies or other water utilities, usually via a system of pumps and pipes.

Water use analytics: Analysis of water use to determine discrepancies between baseline and actual energy use. Water use analytics help determine whether water use targets are reached, and can highlight opportunities to improve water efficiency and conservation.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Other:

  1. Requirements for planning and design: State the requirement for planning and design.
  2. Water efficiency measures: State the water efficiency measure.
  3. Operational water efficiency monitoring: State the operational water efficiency monitoring type.

Evidence: Document upload is mandatory. The evidence must demonstrate the promotion of water efficiency requirements and the elements that it covers. Depending on the selected answer options, the document upload must include information on the selected options of "Requirements for planning and design" (e.g., RFP language requesting integrated design process, above code design).

Post-construction monitoring: If the entity has requirement on post-construction performance monitoring, please specify the required number of years. If the entity monitors performance for an infinite period, please enter “100”.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are based on (1) selected answer options and validity of provided other answers, (2) validity of the evidence based on the requirements stated above.

Reporting multiple other answers will not impact scoring; reported answer options in this field are validated individually, but scores will not be aggregated.

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

References

LEED BD+C: New Construction, v4, Indoor Environmental Quality/p>

BREEAM, International New Construction, 2013: 08 Water

GRI Sustainability Reporting Standards, 2016: 303, Water

2 points

Intent

This Indicator is intended to describe the entity’s strategy to manage waste from construction and demolition. A waste policy assists organizations with reducing waste from construction and demolition disposed of in landfills and incineration facilities, by recovering, reusing and recycling materials.

Terminology

Construction waste signage: Visible signage that clearly indicates the process of properly dealing with waste generated during construction.

Education on waste management: Educating employees, contractors and crews on materials recovery techniques and procedures, such as sorting and storage methods, recoverable materials and removal techniques.

Hazardous waste: A solid waste, or combination of solid wastes, which because of its quantity, concentration, or physical/chemical/infectious characteristics may either cause, or significantly contribute to an increase in mortality/serious irreversible illness. Hazardous waste might also pose a substantial present or potential hazard to human health or the environment when improperly treated, stored, transported, disposed of, or otherwise managed.

Incentives for contractors: Incentives, for example, to allow contractors and crews to retain a portion of revenues and/or savings from materials recovery and sales.

Management and construction practices: Measures and strategies implemented by management and construction employees throughout the construction project.

Non-hazardous waste: Waste that does not have the potential to cause harm to humans, animals or the environment.

On-site waste monitoring: Monitoring of waste generated during the design and construction phase of the building, to identify that waste generation and disposal objectives are being met.

Recovering building materials: Diverting building material waste from landfill by recovery of the material from site to be recycled or sent for energy recovery.

Recycling building materials: Diverting building material waste from landfill to an on or off-site recycling facility.

Reusing building materials: Diverting building material from landfill by reemploying the material on site or on other approved sites in the same or related capacity as their original application.

Waste stream: The complete flow of waste from generation to final disposal.

Waste management plan: Plan that addresses the collection and disposal of waste generated during construction or renovation, usually including the collection, transfer, treatment and disposal of a variety of waste types.

Waste separation facilities: A designated facility where waste is separated into different elements to be correctly disposed of, recycled, or otherwise managed.

Requirements

Select yes or no. If yes, select all applicable sub-options for (1) management and construction practices (2) on-site waste monitoring.

Other:

  1. Management and construction practices: State the waste management practice.
  2. On-site waste monitoring: State the type of waste monitored.

Evidence: Document upload or document name and date. The evidence should sufficiently support all the items selected for this question. In the absence of an upload, providing the document name AND date of publication is mandatory, and you may be asked to disclose the document to GRESB as part of the validation process.

The evidence must demonstrate the promotion of efficient on-site solid waste management and the elements that it covers. Depending on the selected answer options, the document upload should include:
  1. Waste management plan or requirements typically provided to contractors (e.g., RFP language, etc.) including the selected answer options AND/OR
  2. Information about practices used to measure or monitor on-site waste monitoring during the construction phase of its applicable projects.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded based on (1) selected answer options for design, measures, and monitoring indicators and (2) validity of provided other answers.

Reporting multiple other answers will not impact scoring; reported answer options in this field are validated individually, but scores will not be aggregated.

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

References

LEED BD+C: New Construction, v4, 09 Material & Resources

BREEAM, International New Construction 2013, 10 Waste

EPA, Resource Conservation and Recovery Act, Construction Sector (NAICS 23)

GRI Sustainability Reporting Standards (2016): 303, Effluents and Waste

Supply Chain

2018 Indicator

2 points

Intent

This Indicator examines the entity’s strategy to ensure contractors support the entity’s ESG objectives and follow ESG management requirements. Sustainability-specific requirements for contractors can ensure proper implementation of the entity’s sustainability policies for new construction and major renovation projects. Relationships with contractors and the written agreements that define those relationships make sustainability requirements enforceable upon a wider range of stakeholders.

Terminology

Environmental process standards: Minimum standards required during the procurement process in relation to environmental processes, such as requirements for disposal of waste generated by contractors.

Environmental product standards: Minimum standards required during the procurement process in relation to environmental products, such as requiring a certain percentage of products to be locally sourced or contain recycled content.

External contractors: Organizations or persons working on-site or off-site on behalf of an organization with a relationship determined by a contract. A contractor may hire their own staff directly or hire sub-contractors or independent contractors.

Human health-based product standards: Minimum standards for the health-related attributes of products, such as lists of prohibited chemicals.

Human rights: Human rights are rights inherent to all human beings, whatever their nationality, place of residence, sex, national or ethnic origin, colour, religion, language or any other status.

On-site health and safety: Requirements that focus on protecting the safety, health and welfare of people engaged in construction work.

ESG-specific requirements: Includes specification and use of sustainable and energy efficient materials, systems, equipment and onsite operating practices, e.g. regarding access to the site, environmental impact, community impact, health and safety, etc..

Requirements

Select yes or no. If yes, select all applicable sub-options.

Percentage of all projects: Provide the percentage of all projects covered. The numerator is the floor area of the projects for which the applicable requirements are in place. The denominator is the total floor area of all projects reported in RC-NC1.1 and RC-NC2.1.

Other: State the sustainability-specific requirement. It is possible to add multiple other answers.

Evidence: Document upload or document name and date. The evidence should sufficiently support all the items selected for this question. In the absence of an upload, providing the document name AND date of publication is mandatory, and you may be asked to disclose the document to GRESB as part of the validation process.

The evidence must demonstrate the existence of the ESG requirements for its contractors in development projects. An example is a copy of contractor requirements (e.g., contract language or RFP).

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded based on (1) selected answer options for design, measures, and monitoring indicators and (2) validity of provided other answers.

Reporting multiple other answers will not impact scoring; reported answer options in this field are validated individually, but scores will not be aggregated.

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

References

BREEAM, International New Construction, 2013: 04 Management

United Nations Universal Declaration of Human Rights, 1948

EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017: 5.6, H&S-Employee health and safety

2 points

Intent

Monitoring measures ensure that contractors comply with the contractual specifications and requirements regarding sustainability issues.

Terminology

Ad hoc site visits: Visits without advance notice.

Audits: A systematic review and assessment performed by qualified personnel to determine by investigation, examination, or evaluation of objective evidence, the adequacy and compliance of the contractors with the sustainability-specific requirements.

Environmental issues: The impact on living and non-living natural systems, including land, air, water and ecosystems. This includes, but is not limited to, biodiversity, transport and product and service-related impacts, as well as environmental compliance and expenditures.

National or international standard: Standard related to environmental management, e.g. ISO 14001, etc.

Social aspects: Includes increased noise, traffic congestion, lack of housing, resettlement requirements or pressure on access to local services that arise from influx of personnel, site development work or operational processes that are new to the area, etc.

Requirements

Select yes, no, or not applicable if you answered no to NC10.1. If yes, select all applicable sub-options including the additional information requested.

Percentage of projects audited: Provide the percentage of all projects covered. The numerator represents the floor area of the projects for which the applicable requirements are in place. The denominator is the total floor area of all projects reported in RC-NC1.1 and RC-NC2.1.

External audits by third party: Report the name of the organization that performed the audit. You may be asked for additional information about the organization. It is possible to report multiple organizations for transparency purposes, however scores will not be aggregated.

Other: State the method of monitoring. It is possible to add multiple other answers.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded based on (1) selected answer options for design, measures, and monitoring indicators and (2) validity of provided other answers.

Reporting multiple other answers will not impact scoring; reported answer options in this field are validated individually, but scores will not be aggregated.

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

References

ISO 14001, Environmental Management Standard

SITES v2 Rating System

LEED BD+C: New Construction, v4, Sustainable Sites

BREEAM International New Construction, 2013; and BREEAM Communities Manual, 2012

RobecoSAM Corporate Sustainability Assessment, 2017: 3.5.5, ESG integration in supply chain strategy

Health, Safety and Well-being

2018 Indicator

2 points

Intent

This Indicator is intended to describe the entity’s strategy to design and build buildings that promote occupant health and well-being. Buildings designed with occupant health and well-being in mind lead to increased employee satisfaction and greater productivity.

Terminology

Access to spaces for active and passive recreation: Access to spaces designated for recreation, including but not limited to green spaces, picnic areas, sport facilities, or children’s playgrounds.

Active design features: Design features specifically aimed to positively contribute towards occupant health and well-being, e.g. centrally located staircases to get occupants to be more active.

Commissioning: Quality-orientated review and verification process during the design and construction phase, to ensure that the performance of facilities, systems and assemblies meet defined objectives during the operational phase.

Daylight: The capacity of a building to provide maximum daylight exposure to occupants, via building design (e.g. angle of orientation, number of and size of windows) and material (e.g. reflective coatings) features. Maximizing daylight exposure not only benefits occupant health and well-being, but also can reduce the need for artificial light, and therefore energy expenditure.

Health Impact Assessment: A mean of assessing the health impacts of policies, plans and projects using quantitative, qualitative and participatory techniques.

Indoor air quality:The physical or biological characteristics of air within buildings. Indoor air quality (IAQ) is typically the product of outdoor quality mediated by the design and operation of building systems.

Indoor air quality monitoring: The process of monitoring the fluctuations in IAQ, to promote efficient and successful IAQ maintenance and improvement. Monitoring can occur via portable or fixed sensors to measure a range of air pollutants.

Integrated planning process: A planning process that considers and involves multiple aspects, stakeholders and functions, instead of addressing each separately, to align and achieve objectives.

Natural ventilation: The process of supplying and removing air through an indoor space without using mechanical systems. There are two types of natural ventilation occurring in buildings: wind driven ventilation and buoyancy-driven ventilation.

Occupant controls: Individual controls for heating, cooling and other building systems. They support individual comfort of building occupants, while reducing energy consumption. Occupant controls also enable occupants to respond rapidly to alleviate discomfort when it is experienced.

Occupant education: Education and training of building occupants to increase knowledge on sustainability principles and the benefits to their health and well-being, including behavioral change and techniques

Occupant well-being: Health and comfort of building occupants. Healthy indoor environments (including indoor air quality, thermal comfort, lighting, visual quality and acoustic performance) are an essential part of realizing the potential benefits of occupant well-being.

Post-construction health and wellbeing monitoring: A structured approach towards measuring and managing the health and well-being of occupants, such as occupant comfort and satisfaction.

Provisions for active transport: Active transport is transport via walking or bicycling. Provisions for active transport include designating safe and accessible pedestrian walkways as a building design measure, bike storage areas and shower facilities.

Requirements

Select yes or no. If yes, select all applicable sub-options for (1) requirements for planning and design (2) common occupant health and well-being measures, (3) operational occupant health and well-being verification provisions and.

Other:

  1. Requirements for planning and design: State the requirement for planning and design.
  2. Occupant health and well-being measure: State the health and well-being measure. Measures should be related to the physical building. Location-related measures (e.g., walkability, proximity to public transport or to nearby amenities) are not valid.
  3. Occupant health and well-being monitoring: State the health and well-being measure.
It is possible to add multiple other answers.

Evidence: Document upload or document name and date. The evidence should sufficiently support all the items selected for this question. In the absence of an upload, providing the document name AND date of publication is mandatory, and you may be asked to disclose the document to GRESB as part of the validation process.

The evidence must demonstrate the promotion of occupant health and well-being and the elements selected of health and well-being "Requirements for planning and design". Examples of acceptable uploads include but are not limited to a description of typical project requirements (e.g., RFP language, owners project requirements, similar).

Post-construction monitoringIf the entity has requirement on post-construction performance monitoring, please specify the required number of years. If the entity monitors performance for an infinite period, please enter “100”.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded based on (1) selected answer options and validity of provided other answers, (2) validity of the evidence based on the requirements stated above.

Reporting multiple other answers will not impact scoring; reported answer options in this field are validated individually, but scores will not be aggregated.

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

References

LEED BD+C: New Construction, v4, Indoor Environmental Quality

BREEAM, International New Construction, 2013: 05 Health and well-being

GRI Sustainability Reporting Standards, 2016: GRI 416; 416-1

1 point

Intent

The dangerous nature of project construction work and some building services work can lead to hazardous and harmful events, such as incidents, injuries, and fatalities. These have the potential to undermine a business’ brand and long-term success. Occupational health and safety (OHS) performance can be seen as a key measure of an organization’s duty of care. Monitoring of and reporting on on-site occupational health and safety is an indicator of prudent risk management.

Terminology

On-site health and safety: Requirements that focus on protecting the safety, health and welfare of people engaged in construction work.

Requirements

Select yes or no. If yes, select all applicable sub-options for (1) promotion means and (2) requirements and standards.

Other: State the alternative means applied to promote on-site health and safety. It is possible to add multiple other answers.It is possible to add multiple other answers.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded based on (1) selected answer options and validity of provided other answers, (2) validity of the evidence based on the requirements stated above.

Reporting multiple other answers will not impact scoring; reported answer options in this field are validated individually, but scores will not be aggregated.

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

References

BS OHSAS 18001/18002, Occupational Health and Safety Management

ISO 9001, Quality Management Systems; and ISO 14001, Environmental Management System

ILO-OSH 2001, Guidelines on Occupational Safety and Health Management Systems

NAICS 23

GRI Sustainability Reporting Standards, 2016: GRI 403 Occupational health and safety

1 point

Intent

Monitoring of and reporting on on-site health and safety is an indicator of prudent risk management. Keeping records of the number of incidents, injuries and fatalities over time help to identify patterns that can guide the implementation of measures needed to minimize health and safety risks.

Terminology

Fatalities: The death of a worker arising from an occupational injury or disease sustained or contracted while in the organization’s employ.

Injury: Any instance of being injured, (including occupational diseases and occupational disabilities, and fatalities) arising from operations. Includes incidents involving contractors/sub-contractors, site visitors and members of the public. The injury rate is expressed as a rate (e.g. a fraction). Use the open text box to explain the applied calculation method/formula.

Near misses: A work-related event with the potential to cause injury, disability or disease to workers or the public (also known as “dangerous occurrences”).

Requirements

Select yes or no. If yes, select all applicable sub-options and complete the additional open fields.

Injury rate: Report the injury rate for the total workforce, i.e. total employees and supervised workers, as well as independent contractors working on site to whom the organization is liable for the general safety of the working environment.

Open text box: For injury rates, it is mandatory to use the open text box to explain the applied calculation method/formula.

Fatalities: Fatalities are expressed as a number.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are based on the number of indicators that are used for monitoring.

The validity of the injury rate is based on the open text box explanation. Provided figures are for reporting purposes only and do not have an impact on scoring.

References

GRI Sustainability Reporting Standards, 2016: 403-2

RobecoSAM Corporate Sustainability Assessment, 2017: 3.5.2 Risk culture

Community Impact and Engagement

2018 Indicator

1.5 points

Intent

The built environment has a significant direct and indirect socio-economic impact, for example on social well-being, quality of life, and the prosperity of local communities and individuals. Assessing the social-economic impact helps to minimize the potential negative impact of new construction and major renovation projects and can create more livable, prosperous and sustainable communities.

Terminology

Housing affordability: Affordable housing refers to housing units that are affordable by the low-income section of society (for example, whose income is below the median household income).

Impact on crime levels: The impact of the use of the asset and related facilities on crime levels, e.g. inadequate lighting or security may lead to increased crime levels, including vandalism, theft, etc.

Local income generated: Contributing to local economic benefits, and creating business diversity and opportunities for economic development and innovation. For example, providing tax revenues.

Local residents’ well-being: Includes health and safety of local residents that may be impacted by the asset’s operation. For example, noise pollution issues.

Walkability score: A score designed to measure the walkability of a given address. In this context, within the surrounding community.

Requirements

Select yes or no. If yes, select all applicable sub-options.

Other: It is possible to report multiple other answers.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded based on (1) selected answer options and (2) validity of provided other answers.

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

References

Green Star, Communities PILOT Version 0.1

1.5 points

Intent

New construction and major renovation projects are likely to impact/disrupt the local community. These disruptions will differ per project and per phase of the development process. Monitoring helps an organization to manage and reduce the impact of new construction and major renovation projects on the local community during the development process.

Terminology

Analysis and interpretation of monitoring data: A structured approach to analyzing and interpreting data obtained from monitoring processes, in order to make actionable use of the data.

Communication plan: A specific, objective-based plan identifying commitments to engaging with the community by obtaining their input and feedback during different stages of construction and renovation projects.

Community impact: Community refers to individuals or groups of people living and/or working in any areas that are economically, socially or environmentally impacted (positively or negatively) by the construction/renovation activities. Impact includes increased noise, traffic congestion, lack of housing, resettlement requirements or pressure on access to local services that arise from influx of construction personnel, site development work or operational processes that are novel to the area.

Community monitoring plan: A specific, objective-based plan to ensure that monitoring of the community during different stages of the construction and renovation projects is implemented and maintained.

Monitoring: A structured approach towards measuring and managing the impact of community engagement projects on the local community.

Nuisance and/or disruption risks: Risks that are likely to cause a nuisance or disruption to stakeholders/impacted groups/communities, such as excess noise or increase traffic congestion.

Risk mitigation plan: A structured and purposeful process of identifying risks and developing actions to eliminate or reduce the adverse impacts of the risk, and planned responses should the risk occur.

Stakeholders and impacted groups: All individuals or groups of people who may be affected by the objectives and/or actions of a construction/renovation project, either directly or indirectly.

Requirements

Select yes or no. If yes, select all applicable sub-options.

The response of this indicator must be specific to the impact of new construction and major renovation projects during different stages.

Other: State the alternative means through which the entity monitors impact on the local community.

It is possible to report multiple other answers.

Evidence: Document upload is mandatory for this indicator. The evidence should sufficiently support all the items selected for this question.

The provided evidence must demonstrate the existence of the monitoring process and the elements that it covers. Examples of acceptable documents include but are not limited to impact reports or data illustrating the collection of relevant information.

Open text box: The content of this open text box is not used for scoring, but will be included in the Benchmark Report. Participate may use this open text box to communicate on

  1. An explanation of the approach per phase of the construction/renovation project;
  2. An explanation of how impact is monitored;
  3. The actions taken when an issue arises;
  4. The process for developing and implementing improvements.

Reporting period: Answers must refer to the reporting period identified in EC3.

Reporting level: Answers should be applicable at entity level.

Scoring

Points are awarded to each selected checkbox option and are then aggregated to calculate the indicator’s final score.

Reporting multiple other answers will not impact scoring; reported answer options in this field are validated individually, but scores will not be aggregated.

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

The reported answer options are validated based on the provided evidence, and points are contingent upon validity of the supporting evidence.

References

BREEAM Communities Manual, 2012

Appendix 1

2019 GRESB Real Estate Assessment Changes

GRESB works closely with its members and broader industry stakeholders to ensure the Assessment addresses material issues in the sustainability performance of real estate investments. The main focus of the 2019 Assessment development process were enhancements to asset-level reporting functionality and the integration of selected Health & Well-being Module elements. The changes serve the longer term development of the Assessment, support our efforts for good quality data and reflect the evolution of the real estate industry as measured by the benchmark over the last years.

The table below lists all changes, as well as their implications for your reporting process.

High-level comments

Continuous, all year use of the GRESB Asset Portal and API

With the year round availability of the Asset Portal and API, assets can be added and edited throughout the year. Added data can then be used during the reporting period for aggregation to portfolio level indicators.

Updated checks in the asset portal and improved guidance for asset level reporting

The updates to data integrity rules and live validation are designed to simplify reporting and improve data quality.

Updated API

API endpoints are updated and migrated to https://api.gresb.com/api/entities. For more information visit our updated API documentation.

The access to the Template Tool is no longer restricted to members.

The template tool enables participants to copy information across multiple submissions, reducing the amount of time spent replicating information across entities held by the same fund manager.

The Validation Interview process changes structure and will be mainly based on a desktop review.

While the scope of the Validation Interview will remain the same (the validators will do an in-depth analysis of all supporting evidences, mandatory and non-mandatory, performance indicators and outliers), the Validation Interview report, the call with the participant, and the participant’s ability to change their responses following the call will be removed from the process. Participants will continue to be automatically notified if they are selected for a Validation Interview and there may still be instances where we need to contact the participant for missing supporting evidence, additional information, clarifications or corrections to the data submitted.

A selection of Health & Well-being indicators are incorporated into the Real Estate Assessment

With the release of the 2018 results and after a successful 3-year cycle, the Health & Well-being Module has served its purpose as an exploratory vehicle and incubator for new indicators. In 2019, a selection of health & well-being indicators are incorporated into the GRESB Real Estate Assessment, effectively making these indicators a reporting requirement for all GRESB participants. The newly introduced Health & Well-being indicators are grouped as a separate section in the Stakeholder Engagement aspect.

Validation Plus indicators

The Validation Plus indicator selection is performed by GRESB and is subject to change on an annual basis in order to rotate the validation scope every year. This allows GRESB to apply a consistent level of scrutiny on all participating entities. In 2019, the following changes are introduced:

  • MA1, PD3: are excluded from the Validation Plus scope and become APC indicators. 2018 supporting evidence is pre-filled and pre-validated
  • MA5, PD1: become Validation Plus indicators and the supporting evidence is reviewed for all participants

Indicators level comments

Entity & Reporting Characteristics

RC5.2

New evidence requirement for reporting boundaries provided in RC5.1

Rationale for change: RC5.1 determines the entity’s peer group composition and enables data checks on benchmarked indicators. To facilitate a fair and accurate benchmark, it is essential that the portfolio boundaries identified in RC5.1 are complete.

Impact of change: Increased participant and investor confidence in the accuracy of the GRESB Real Estate Benchmark. An improved ability to confirm accurate portfolio reporting in both Response Checks and Validation.

RC-NC1.1

Vacant land is excluded from the reporting scope.

Rationale for change: Vacant land does not share the same ESG issues as standing investments or development projects, and it does not directly associate to any performance indicator.

Policy and Disclosure

PD2

Two new options are added “Employee Health & Well-being” and “Tenant/customer and community health & well-being”.

Rationale for change: This is part of the Health & Well-being integration.

Impact of change: The scope of the indicator is expanded to assess the presence of policies to address employee, tenant/customer and community health and well-being. The indicator will still be pre-filled for 2018 participants.

PD4

Non-scored indicator is further developed to introduce a set of quantitative diversity metrics and the ability to report on governance bodies and employees separately.

Rationale for change: This indicator was introduced as a non-scored indicator in 2018. Building on last year’s answers, we have further developed it into a more analytical indicator on diversity.

Impact of change: The changes bring a better alignment with the GRI Standards and EPRA’s sBPRs.

PD5.2

Third-party verification and third-party assurance of sustainability disclosure receive equal points.

Rationale for change: Over the past years, the non-financial information third-party review industry has witnessed the development of several new verification and assurance standards. The level of scrutiny underpinning such third-party reviews tends to be dictated by the standard used, rather than the terminology used to describe the review process.

Impact of change: The scoring is adjusted to recognize external verification in the same way as external assurance. “Other” answers provided to the Scheme name dropdown menu are subject to validation.

Risk and Opportunities

RO5/6/7

Indicators are simplified to reflect whether such measures exist across the portfolio. The column for individual measure descriptions is replaced by an open textbox below the table.

Rationale for change: Participants no longer need to report on the measures that were implemented over four years ago.

Impact of change: Reduced reporting burden.

Monitoring and EMS

ME2

Evidence removed.

Rationale for change: The supporting evidence for this indicator was validated for a few consecutive years. More than 99% evidence uploaded in 2018 was Accepted.

Impact of change: Reduced reporting burden.

Performance Indicators

Asset level data

Enable the download of asset-level data

Rationale for change: Provide a more flexible asset level reporting process controlled by the participant.

Impact of change: This can be done once outliers are solved and missing data is completed, enabling the participant to use a curated dataset online (through the portal) and offline.

PI1.2/ PI2.2/ PI3.2

Open text box for description of intensity calculation methodology is removed, and the scoring of these three indicators is updated.

Rationale for change: The information provided via the text boxes was repetitive and lacked specificity. This is a simplification step towards the 2020 Assessment framework, which will simplify these indicators even further.

Impact of change: Scoring for these indicators remains the same, but the points previously assigned to the open text boxes are re-distributed to the intensity data tables and selection of normalisation factors.

PI2.1

Table is extended to capture emissions from outdoor / exterior spaces

Rationale for change: Participants with outdoor / exterior spaces energy data reported in PI1.1 (and particularly those with only outdoor / exterior spaces data available) were not able to correctly represent the emissions corresponding to this consumption, leading to outlier messages in some cases.

Impact of change: A more accurate representation of GHG emissions data. No impact on scoring.

PI1.4/ PI2.3/ PI3.4/ PI4.2

Third-party verification and third-party assurance of data receive equal points

Rationale for change: Over the past years, the non-financial information third-party review industry has witnessed the development of several new verification and assurance standards. The level of scrutiny underpinning such third-party reviews tends to be dictated by the standard used, rather than the terminology used to describe the review process.

Impact of change: The scoring is adjusted to recognize external verification in the same way as external assurance. “Other” answers provided to the Scheme name dropdown menu are subject to validation.

Stakeholder Engagement

SE3.1

Indicator is incorporated into SE12.1

Rationale for change: Consolidation of health & well-being indicators into an individual section

Impact of change: Indicator maintains its score within SE12.1 and is pre-filled with the 2018 information (if applicable)

SE8.1

Evidence removed.

Rationale for change: The supporting evidence for this indicator was validated for all participants in 2018 and had a 90% Accepted rate. The remainder of 10% answers were Partially Accepted, with only a few exceptions.

Impact of change: Reduced reporting burden.

SE12.1/ SE12.2/ SE13.1/ SE13.2

New indicators on employees and tenants health and well-being.

Rationale for change: Integration of select indicators from the old Health & Well-being Module into the Real Estate Assessment.

Impact of change: The weight of the Stakeholder Engagement aspect increases as a result of:

  • SE12.1: 2p, S, IM
  • SE12.2: 0p, S, IM
  • SE13.1: 1.5p, S, IM
  • SE13.2: 0p, S, IM

New Construction and Major Renovation

NC7.2

The open textboxes for describing the entity’s definition of “net-zero energy” and referenced code/standards are replaced by checkboxes.

Rationale for change: Responses in open textboxes are difficult to compare and provide little analytical value.

Impact of change: An easier to report, better-structured indicator.

Appendix 2

Terminology Acronyms

ANREV The Asian Association for Investment in Non-listed Real Estate Vehicles
AL asset-level
APREA The Asia Pacific Real Estate Association
BPF The British Property Federation
BREEAM The Building Research Establishment’s Environmental Assessment Method
CASBEE The Comprehensive Assessment System for Built Environment Efficiency
CDP Carbon Disclosure Project
DEC Display Energy Certificates
DGNB Deutsche Gessellschaft fur Nachhaltiges Bauen e.V.
EMS Environmental Management System
EPC Energy Performance Certificate
EPRA European Public Real Estate Association
FL Fund Level
GAV Gross Asset Value
GHG Greenhouse gas
GRA Green Rating Alliance
GRI Global Reporting Initiative
GRI CRESS The GRI Construction and Real Estate Sector Supplement
HVAC Heating Ventilation and Air-Conditioning
INREV The European Association for Investors in Non-Listed Real Estate Vehicles
ISA The International Sustainability Alliance
ISIN International Securities Identification Number
IPMS International Property Measurement Standard
IVBN Vereniging van Institutionele Beleggers in Vastgoed
JV Joint Venture
NABERS National Australian Built Environment Rating System
NAREIT National Association of Real Estate Investment Trusts
NF HQE Normes Francaises Haute Qualité Environnementale
NOI Net operating income
OL Organization Level
PREA Pension Real Estate Association
REALpac Real Property Association of Canada
UN PRI The United Nations-supported Principles for Responsible Investment

Appendix 3a

Building Certification Schemes

List of design and/or construction green building certification schemes:

List of operational green building certification schemes:

This list indicates certifications that have been submitted to GRESB as part of participation and accepted for full or partial recognition. Additional schemes may also receive recognition if they meet GRESB’s criteria.

Appendix 3b

Green Building Certification Evaluation Form

A

Certification scheme

  1. Brand _________________
  2. Certification scheme name _________________
  3. Certification sub-scheme name _________________
  4. Certification body name _________________
  5. Country where certification is given _________________
B

Is the certification an in-house or external scheme?

  • In-house
  • External

Note: If you use an in-house scheme, GRESB will ask for additional information. If no third-party documentation review or on-site assessment is required, GRESB will ask for supporting evidence on the assessment method.

C

Verification of compliance with scheme requirements is based on:

  • Third-party document review
  • Third-party on-site assessment
  • Both document and on-site assessment performed by a third-party
  • No third-party document review or on-site assessment required
D

Public information

  1. Website of the scheme _________________
  2. Public list of certified projects online _________________
E

Is the scheme required by a national or regional government agency?

  • Yes. Specify name of agency _________________
  • No

Note: Mandatory certification by a central government or regional/local government department or from an organization with delegated authority from such a department.

F

Is the scheme used by a national or regional government agency?

  • Yes. Specify name of agency _________________
  • No
G

The certification is based on:

  • Prescriptive performance design and operation goals
  • Operational performance data collection
  • Both prescriptive and operational performance
  • None
H

Select the topics included in the scheme assessment: (multiple answers possible)

  • Location
  • Transportation & Accessibility
  • Site design
  • Energy efficiency
  • Renewable energy
  • Zero energy or carbon neutral design
  • Greenhouse gas emissions management
  • Emissions & pollution control
  • Indoor water management
  • Outdoor water management
  • Water quality and supply
  • Waste reduction and management
  • Indoor environmental quality
  • Operations/management
  • Materials selection
  • Land use & ecology
  • Health & well-being
  • Social equity
  • Resilience
  • Innovation

Note: Refers to the topics covered by the certification scheme in general, not to the topics included in the assessment of a particuylar asset.

I

Select the property types included in the scheme assessment: (multiple answers possible)

  • Data Centers
  • Healthcare
  • Hotel
  • Industrial, Business Parks
  • Industrial, Distribution Warehouse
  • Industrial, Manufacturing
  • Lodging, Leisure & Recreation
  • Medical Office
  • Office
  • Parking (indoors)
  • Residential, Family Homes
  • Residential, Multi-family
  • Residential, Student Housing
  • Retail, High Street
  • Retail, Shopping Center
  • Retail, Warehouse
  • Self-storage
  • Senior Homes
  • Other, please specify _________________
J

Assessment details

  1. Assessment method: ___________________________________________________
  2. Assessment criteria ___________________________________________________
  3. Certification duration ___________________________________________________
  4. Recertification requirements: ___________________________________________________
  5. Is the certification assessment method and process publicly available?
    • Hyperlink: ___________________________________________________
  6. Does the certification body have a governance structure overseeing the development and the quality of the scheme?
    • Describe the process ___________________________________________________
  7. It the certification assessment criteria and scoring are publicly available?
    • Hyperlink: ___________________________________________________
  8. Does the certification body has a governance structure overseeing the development and the quality of the scheme?
    • Describe the structure: _________________
  9. Levels of certification (from highest to lowest): _