Legal characteristics
Entity/Business unit name: ____________
Organization name (if applicable): ____________
GRESB is an industry-driven organization transforming the way capital markets assess the environmental, social and governance (ESG) performance of real asset investments.
GRESB data and analytical tools are used by over 70 institutional and retail investors, including pension funds and insurance companies, collectively representing over USD 17 trillion in institutional capital, to engage with investment managers to enhance and protect shareholder value.
For more information,visit gresb.com. Follow @GRESB on Twitter.
The GRESB Debt Assessment is an ESG engagement and benchmarking tool for primary lenders including regional and national banks; insurance companies; private equity debt funds; and mortgage REITs. The benchmark is tailored to real estate lenders with specific focus on sustainability actions related to:
The Assessment is structured into three sections with 26 Core indicators along with five sector-specific indicators applicable to the lending units of banks and insurance companies, and a different set of five indicators applicable to private equity funds.
Participants answer 31 indicators that assess performance against 6 Sustainability Aspects:
The Assessment results provide opportunities to identify strengths and areas for improvement, both in absolute terms and relative to peers. Participants use their results to inform business planning and deepen stakeholder communication on sustainability issues.
For mortgage REITs and private equity real estate funds, the GRESB Debt Assessment serves as an outward facing communication tool to GRESB’s institutional investor members, and to the capital markets more broadly. Annual participation communicates commitment to ESG management practices and the incorporation of sustainability techniques into commercial real estate lending.
Participation in the Debt Assessment is free of charge. All participants receive a Scorecard with a summary of ESG performance. Participants do not need to be GRESB Members.
GRESB Members receive a bundle of benefits including a detailed Benchmark Report detailing current strengths and opportunities for improvement, business intelligence from peer-to-peer comparisons, and a thematic analysis of aspect scores. Members also receive a high-level pre-submission response check, and increased engagement opportunities including the opportunity to participate on the GRESB Debt Advisory Board.
GRESB Debt Assessment results and underlying information are private and not disclosed to any third parties. 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 (GBCI, Inc). as necessary for the data validation process.
The GRESB Debt Assessment opens on April 1, 2018 via the assessment portal available at GRESB.com. The submission deadline is July 1, 2018 which provides participants 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, 2018. 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:
A Response Check is a high-level check of a participant's 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 8, 2018 subject to available resources. We strongly encourage participants to place their request as early as possible.
Members are able to request a complimentary Response Check for one entity as a membership benefits.
The Assessment Portal is accompanied by indicator-specific guidance, available under the “Guidance” tab that describes:
In addition to the guidance found in the Portal, the GRESB Debt Assessment is accompanied by a Reference Guide. The Reference Guide provides general introductory information and provides indicator-by-indicator guidance that is also available under the Guidance tab in the Portal. The GRESB Debt Reference Guide will be available on March 1, 2018.
The GRESB Assessment Portal has the following tools and functionality to help ensure an efficient and accurate submission:
GRESB works closely with its Members and broader industry stakeholders to ensure the Debt Assessment addresses sustainability issues specific to real estate lenders. Following extensive industry engagement and consultation with the GRESB Debt Advisory Board and 2017 Participants, the 2018 Debt Assessment introduces structural updates, new indicators and refinements to existing indicators.
The table below contains information on the most substantial of these improvements.
| EC3 |
Improvements to entity type definitionRationale for change: Refines the entity definition to focus on lender type rather than legal structure. This change is necessary for better peer grouping and providing sector-specific indicators. Impact of change: No significant impact. |
| RC6 |
New indicator - open text boxRationale for change: Multiple participants indicated interest in the opportunity to communicate key sustainability achievements over the reporting period. This non-scored, open text box will be for reporting purposes only and included in the Benchmark Report. Impact of change: No significant impact. |
| MA1.1 |
Additional text boxes - explanationsRationale for change: Each radio button contains a new text box for providing additional contextual information. The new structure allows participants to define specific objectives/targets/KPIs. Previously this opportunity was included in Q1.2. Impact of change: Information will be validated and scored. |
| MA1.2 |
New indicator - sustainability objectivesRationale for change: Scope changed to emphasize actions taken to achieve objectives tied to MA1.1. This change supports the Debt Assessment emphasis on implementation actions. Scope of the Open Text Box is expanded to require a description of metrics used to track implementation progress. Impact of change: 2018 Assessment participants must select applicable checkboxes then provide necessary context for validation and scoring. |
| MA3.2 |
Additional changes - investment committee reviewRationale for change: Scope changed from a narrower focus on the presence of a senior decision-maker with sustainability responsibility to now emphasize the investment committee process including sustainability-themed items reviewed during loan approval. The open text box scope request context on the loan review process along with actions committee takes to mitigate sustainability risks. Impact of change: Participants must select applicable checkbox(es) and provide substantive context to receive points. This open text box will be validated and scored. |
| PD1.1 |
Internal guidance - decision making frameworkRationale for change: A range of guidance levels inform this indicator, and are provided to ensure better representation of participant actions. Evidence is mandatory and will be validated. Impact of change: The level of internal guidance in place impacts scoring. |
| PD1.2 |
Additional checkboxes - asset metrics, project scope and property typeRationale for change: Participants requested an opportunity to report more granular aspects to this internal guidance. Certain options connect to Q8 in the 2017 Debt Assessment. Impact of change: Participants must select applicable checkbox(es) and provide substantive context to receive points. This open text box will be validated and scored. |
| PD2 |
New indicator - post-close data monitoringRationale for change: As lenders gather more sustainability-related metrics, a systematic approach to data collection is needed for improved risk management. Presence of a written guidance document signals the presence of a systematic approach. Impact of change: The new indicator substitutes Q9 and will be scored in 2018. |
| PD3 |
Enhanced indicator scopeRationale for change: Scope of this indicator has improved to emphasize lender engagement and involvement with evolving industry practice. Impact of change: The engagement scope impacts scoring. |
| DD4 |
New indicator - sustainability scorecardRationale for change: Multiple 2017 Debt Assessment participants reported implementing sustainability-related scorecards to inform borrower and collateral analysis. This indicator allows participants to report the technique utilized. Impact of change: This new indicator substitutes Q14 and will be scored in 2018. |
| ME1.1 |
Indicator refinement - borrower emphasisRationale for change: This refinement is focused on sustainability-related KPI tracking specific to the borrower. Impact of change: The new indicator substitutes Q16 and will be scored in 2018. |
| ME1.2 |
Indicator refinement - asset emphasisRationale for change: Indicator structure changed to offer opportunity to focus on asset type, relevant KPIs, and update frequency. Impact of change: Update frequencies will be validated and scored. |
| ME3 |
Granular certification levelsRationale for change: Multiple participants reported tracking energy rating levels and the types of achieved building certificates within the loan portfolio. This new indicator structure allows participants to report certification level exposure. Impact of change: Percentage coverage of all applicable certifications and levels is necessary to complete this indicator. |
| ME4 |
Building certification monitoring capabilitiesRationale for change: To decrease reporting burden and improve data quality, new building certifications must be selected from the dropdown menu, then reported based on portfolio percentage coverage. Impact of change: The ability to granularity identify building certifications, by level and points achieved, will be used in scoring. |
| RO1.1 |
Additional checkboxes - valuation frameworksRationale for change: Focus of the indicator is how lenders include sustainability attributes in the valuation assignment. Participants may choose from existing frameworks or otherwise explain their approach. Impact of change: The refined indicator substitutes Q23.1 and will be scored in 2018. Open text box is mandatory, and will be validated and scored. |
| RO1.2 |
New indicator - post-close valuation attributesRationale for change: This indicator identifies the post-close valuation process as to the inclusion of sustainability attributes. Participants may select all applicable textbox(es) for this indicator. Impact of change: The indicator replaces Q23.2 and is scored. |
| RO4 |
Long-term sustainability risk identificationRationale for change: The 2018 GRESB Debt Assessment includes additional checkboxes to better reflect key long-term sustainability risks faced by lenders. Participants may select applicable checkboxes when submitting this indicator. Impact of change: No significant impact. |
| FUND1 |
Sustainability oversight - responsibilities and organizational reachRationale for change: Updated indicator structure allows participants to better define scope of the sustainability taskforce/committee. Impact of change: No significant change. |
| FUND3 |
New indicator - asset improvement planRationale for change: Multiple 2017 participants noted they require borrowers to provide asset improvement plans as condition of loan approval. This indicator allows participants to elaborate on the applicability and scope of asset improvement plans. Impact of change: All information components are used to score this indicator. |
| FUND4 |
New indicator - social impactsRationale for change: Social impact review is necessary for commercial real estate lenders to integrate and track portfolio impacts. Impact of change: Participants may select applicable checkboxes. This indicator will be scored in 2018. |
| FUND5 |
New indicator - long-term risk mitigation strategiesRationale for change: This indicator asks participants to describe their approach to mitigating long-term sustainability risks in the real estate loan portfolio. Impact of change: Completing this open text box is mandatory; this indicator will be validated and scored. |
| BANK1 |
Refinements - additional description opportunityRationale for change: Multiple 2017 Debt Assessment participants reported requiring specific metrics/thresholds for green loan product/program eligibility and/or internal impact targets. Impact of change: Additional information contained in text boxes will be validated and scored. |
| BANK3 |
New indicator - green certification reviewRationale for change: Specific points achieved during green building certification provide supplementary information for risk management and review. Lenders should focus beyond the building certification level to include the specific points achieved. Impact of change: This new indicator is scored. |
| BANK4 |
New indicator - dedicated capitalRationale for change: Multiple 2017 GRESB Debt participants maintain capital commitments earmarked for financing property efficiency upgrades. This indicator allows participants to report progress, targeted impacts and achievements. Impact of change: All components of this indicator will be scored in 2018. |
| BANK5 |
New indicator - notification processRationale for change: Advanced borrower and asset-based data tracking can identify future portfolio risk issues. Participants may select all applicable criteria and provide relevant context in the open text box. Impact of change: All components will be used for validation and scoring. |
EC1
Legal characteristics
Entity/Business unit name: ____________
Organization name (if applicable): ____________
EC1
EC2
Location of the entity's headquarters office:
Street Address: ____________
City: ____________
Region/State: ____________
Country: Country
EC2
EC3
Nature of the entity
To best determine peer groups, please select the most applicable lender type
Private equity real estate debt fund
Mortgage REIT
Bank specializing in property investment/development financing
Real estate lending unit of a: (select applicable)
Bank
Insurance company
Pension fund
Sovereign wealth fund
The entity is a:
Listed company
Please specify ISIN/ticker: ____________
Non-listed company
Other: ____________
EC3
EC4
Nature of the business:
Please note that reported percentages can't exceed 100%
Loan originator
Percentage of originations held on balance sheet: ____________%
Percentage of originations syndicated: ____________%
Percentage of originations securitized: ____________%
Loan purchaser
Percentage of portfolio purchased: ____________%
EC4
EC5
The reporting period is:
Calendar year
Fiscal year
Specify the starting month Month
EC5
RC1
Values are reported in: Currency
RC1
RC2
What is the aggregate unpaid principal balance (i.e. outstanding loan value) of the entity's portfolio at the end of the reporting period?
Please report this value in millions taking into account currency reported in RC1
________________________
RC2
RC3
For peer group purposes, describe the loan portfolio composition:
![[DebtPortfolioAnswer]](/images/tables/debt_portfolio_answer/y2018-2dc5ac24.svg)
RC3
RC4
Which countries and property types are included in the entity’s portfolio?
![[CountryPortfolioAnswer]](/images/tables/country_portfolio_answer/y2018-a020f817.svg)
RC4
RC5
Provide additional context describing the lending activity and/or loan portfolio (reporting purposes only)
________________________
RC5
RC6
Please describe any sustainability-based achievements over the prior 12-month period related to originating and/or managing the loan portfolio (reporting purposes only)
________________________
NEW
ManagementMA1.1
Does the entity/business unit have sustainability objectives related to real estate lending?
Yes
ESG issues are broadly addressed within stakeholder communications
Main sustainability themes include: ____________
The entity has clearly defined sustainability objectives and/or targets
First objective/target: ____________
Second objective/target: ____________
Third objective/target: ____________
Sustainability objectives/targets are tied to key performance indicators [KPIs]
First KPI: ____________
Second KPI: ____________
Third KPI: ____________
or URL____________
Indicate where in the evidence the relevant information can be found____
No
Q1.1
2.5 points , MP, G
MA1.2
Does the entity/business unit take specific steps to achieve the sustainability objectives reported in MA1.1?
Yes
Select all applicable actions:
Engage borrower regarding underperforming assets
Formulate borrower's sustainability profile
Provide dedicated financing for sustainability-based property improvements
Enforce external ESG standards
Derive an impact analysis of new construction/major renovation
Analyse long-term sustainability risks of the lending portfolio
Monitor and review asset-level consumption data
Develop standalone sustainable lending policy
Track asset-level sustainability KPIs
Use energy / water / waste metrics as a loan sub-condition
Other: ____________
Describe connection to the objectives and metrics used to track implementation (maximum 200 words)
________________________
No
NEW
2.5 points , IL, G
MA2
Does the entity/business unit have one or more persons responsible for implementing the sustainability objectives referenced in MA1.1?
Yes
Employee(s) with responsibility for implementation and results
Provide the details for the most senior of these employees
Name: ____________
Job title: ____________
E-mail: ____________
Employee(s) responsible for ongoing monitoring and/or KPI reporting
Provide the details for the most senior of these employees
Name: ____________
Job title: ____________
E-mail: ____________
Employee(s) for whom sustainability is among their responsibilities
Provide the details for the most senior of these employees
Name: ____________
Job title: ____________
E-mail: ____________
Other: ____________
Provide the details for the most senior of these employees
Name: ____________
Job title: ____________
E-mail: ____________
No
Q2
1.5 points , MP, G
MA3.1
Does the entity/business unit have a senior decision maker accountable for ESG issues?
Yes
Provide the details for the most senior decision maker
Name: ____________
Job title: ____________
E-mail: ____________
The individual is part of (select most applicable):
Board of Directors
Senior Management Team
Investment Committee
Loan Portfolio Management
Loan Servicing Team
Loan Underwriting Team
Other: ____________
No
Q4.1
1.5 points , MP, G
MA3.2
Does the investment committee review ESG-related information during loan approval process?
Yes
Select all items reviewed
Stand-alone sustainability scorecard/analysis
Congruence with sustainable lending policy
Asset improvement plan
Inclusion of sustainability-related covenants
Other: ____________
Other: ____________
Please elaborate as to the sustainability-related themes reviewed, and action(s) the investment committee takes to mitigate sustainability risks (maximum 200 words)
________________________
No
Q4.2
2.5 points , IL, G
MA4
Are ESG factors incorporated into annual employee performance reviews?
Yes
ESG performance factors are applicable to (multiple answers possible):
Credit Committee
Fund/Portfolio Managers
Loan Servicing Team
Loan Underwriting Team
Risk Management Committee
Senior Management Team
Other: ____________
Does performance outcomes on ESG factors have consequences?
Yes
Financial compensation
Non-financial factors
No
No
Q5
1.5 points , MP, G
Policy & DisclosurePD1.1
Is there a guidance document that describes how sustainability is incorporated into commercial real estate lending?
Yes
Select applicable level
Generalized document that outlines overall approach
Guidance that includes specific sustainability aspects/criteria
Stand-alone policy describing sustainability approach to lending
Policy is applicable during:
Initial loan screening
Collateral assessment
Loan approval process
Post-close loan monitoring
Other: ____________
Upload the policy/guidance:
or URL____________
Indicate where in the evidence the relevant information can be found____
No
Q8
2.5 points , MP, G
PD1.2
Does the document referenced in PD1.1 include specific sustainability-related requirements?
Yes
Select included metrics/aspects:
Asset-specific metrics
Green Building Certification
Energy Rating
Historical performance
Energy consumption
Water consumption
Waste diversion
Other: ____________
Project scope
New construction
Major renovation/deep retrofit
Refurbishment
Other: ____________
Property types applicable
Office
Retail
Residential
Industrial
Other: ____________
Regional/location considerations
Other: ____________
Provide context on the practical use of this guidance, its implementation, and its connection to sustainability objectives in real estate lending (maximum 200 words)
________________________
No
Q8
3 points , MP, G
PD2
Does the entity/business document its sustainability-related data collection process for post-close loan monitoring?
Yes
Select appropriate level
Generalized document describing loan monitoring process, elements and approach
Specific guidance that includes sustainability aspects and criteria
Granular policy informing data collection process including KPIs, frequency, and metrics
Borrowers are required to report:
Financial data
Asset-level data
Energy Ratings
Green Building Certifications
Financial performance
Other: ____________
Other: ____________
Third party reports
Other: ____________
or URL____________
Indicate where in the evidence the relevant information can be found____
No
NEW
1.5 points , IL, G
PD3
Does the entity/business unit participate in external forums or industry collaborations designed to evolve lending sustainability practices?
Yes
Select applicable engagement scope
Ad-hoc approach to stakeholder engagement
Please describe: ____________
Engagement rules are part of high-level policy/guidance document
Stand-alone policy on engagement/collaboration process in real estate lending
Applicable organisations:
Academia/Universities
Government/Regulators
Industry Associations
Investors/Shareholders
NGOs
Other: ____________
or URL____________
Indicate where in the evidence the relevant information can be found____
No
Q7
1.5 points , MP, S
PD4.1
Does the entity disclose its ESG actions and/or performance?
Yes
Disclosure locations (multiple answers possible)
Annual Report
Select the applicable reporting level
Dedicated section describing lending actions and/or resultant KPIs
Aggregated lending information is presented along with other business units
or URL____________
Indicate where in the evidence the relevant information can be found____
Aligned with Guideline name
Sustainability Report
Select the applicable reporting level
Dedicated section describing lending actions and/or resultant KPIs
Aggregated lending information is presented along with other business units
or URL____________
Indicate where in the evidence the relevant information can be found____
Aligned with Guideline name
Integrated Report
*Integrated Report must be aligned with the IIRC framework
Select the applicable reporting level
Dedicated section describing lending actions and/or resultant KPIs
Aggregated lending information is presented along with other business units
or URL____________
Indicate where in the evidence the relevant information can be found____
Aligned with Guideline name
Corporate website
Select the applicable reporting level
Dedicated section describing lending actions and/or resultant KPIs
Aggregated lending information is presented along with other business units
or URL____________
Indicate where in the evidence the relevant information can be found____
Investor Report
Select the applicable reporting level
Dedicated section describing lending actions and/or resultant KPIs
Aggregated lending information is presented along with other business units
or URL____________
Indicate where in the evidence the relevant information can be found____
Aligned with Guideline name
Other: ____________
Select the applicable reporting level
Dedicated section describing lending actions and/or resultant KPIs
Aggregated lending information is presented along with other business units
or URL____________
Indicate where in the evidence the relevant information can be found____
Aligned with Guideline name
No
Q6.1
3 points , MP, G
PD4.2
Does the organization have an independent third party review its sustainability disclosure?
Yes
Select all applicable options (multiple answers possible, selections must match answers in PD4.1)
Annual Report
Externally checked by Service provider
Externally verified by Service provider using Scheme name
Externally assured by Service provider using Scheme name
Sustainability Report
Externally checked by Service provider
Externally verified by Service provider using Scheme name
Externally assured by Service provider using Scheme name
Integrated Report
Externally checked by Service provider
Externally verified by Service provider using Scheme name
Externally assured by Service provider using Scheme name
Investor Report
Externally checked by Service provider
Externally verified by Service provider using Scheme name
Externally assured by Service provider using Scheme name
Other: ____________
Externally checked by Service provider
Externally verified by Service provider using Scheme name
Externally assured by Service provider using Scheme name
No
Q6.2
1.5 points , MP, G
Due DiligenceDD1
As part of standard due diligence, does the lender evaluate third party provided reports?
Yes
Select reports included in standard due diligence (all loans)
Borrower submitted sustainability asset plan
Energy consumption audit
Environmental assessment (Phase I, ESA)
Green building certification documentation/report
Monitoring Surveyors report
Property condition assessment (PCA)
Resilience assessment
Sustainability attributes within the appraisal valuation report
Waste generation/diversion audit
Water consumption audit
Other: ____________
Upload checklist:
Indicate where in the evidence the relevant information can be found____
No
Q11
3 points , MP, G
DD2
Does the lender review asset-specific sustainability risks and opportunities as part of standard review process?
Yes
Select actions and/or risk factors that are considered during regular review
Climate change risks
Energy rating
GHG emissions profile
Habitat biodiversity impact(s)
Health and well-being attributes
Natural hazards
On-site renewable energy installed/generated
Regulatory risk exposure
Socio-economic/demographic factors
Transportation linkages
Other: ____________
Identify sources used in the review process and describe specific KPI metrics utilized (maximum 200 words)
________________________
No
Q12
3.5 points , MP, E
DD3
Does the lender perform a comprehensive borrower/sponsor assessment during the underwriting process?
Yes
Select issues that are reviewed
Borrower-specific risks
Borrower or sponsor misconduct
Environmental fines and penalties
Industry-specific risks
Regional risks
Other: ____________
Sustainability-related actions
Sustainability-related objectives/targets
Community engagement/social programs
Public ESG commitments
ESG performance/data disclosure
Other: ____________
ESG track record
Overall sustainability score
Use of Building Certifications
Asset-related ESG metrics: (select all applicable)
Energy reduction metrics
Water reduction metrics
Waste/recycling metrics
Renewable energy installed/generated
GHG metrics
Other: ____________
No
Q14
3 points , MP, S
DD4
Does the lender include a sustainability scorecard/overview in the investment committee document package?
Yes
Borrower or sponsor scorecard/overview
Select when it is constructed:
All loans
Loans above a value threshold
Define threshold: ____________
Borrowers with negative/minimal ESG track record
Other: ____________
Loan specific scorecard/overview
Select when it is constructed:
All loans
Loans above a value threshold
Define threshold: ____________
Loans for specific property types only
Loans with climate change risk
Construction/redevelopment loans with no sustainability plan
Loans with deficiencies identified in third party reports
Other: ____________
Describe main scorecard elements and weights assigned to each component (maximum 200 words)
________________________
No
NEW
4 points , IL, S
MonitoringME1.1
Does the entity/business unit systematically track sustainability KPIs related to the borrower/sponsor?
Yes
Select all applicable
ESG related misconduct (fines, penalties)
Climate change risk mitigation actions performed
ESG metrics and commitments
Sustainability commitments/objectives
ESG related disclosure
Achievement of sustainability targets
Utilization of green lease language
Third party sustainability score
Provided by Service provider
Other metrics: ____________
Other KPIs: ____________
No
NEW
2.5 points , IL, G
ME1.2
Does the entity/business unit systematically track sustainability KPIs related to the loan collateral?
Yes
Select included items
Asset Ratings
Green Building certifications
Update frequency
Once - at time of origination
Semi-Annual
Annual
Bi-Annual or less
Energy ratings
Update frequency
Once - at time of origination
Semi-Annual
Annual
Bi-Annual or less
Other: ____________
Performance Indicators
Water consumption
Update frequency
Once - at time of origination
Semi-Annual
Annual
Bi-Annual or less
Energy consumption
Update frequency
Once - at time of origination
Semi-Annual
Annual
Bi-Annual or less
GHG emissions
Update frequency
Once - at time of origination
Semi-Annual
Annual
Bi-Annual or less
Other: ____________
Other: ____________
No
Q17
3 points , IL, E
ME2
Does the entity/business unit maintain a systematic process to monitor the existing loan portfolio's exposure to natural hazards?
Yes
Identify natural disasters
Flooding
Mandatory for:
All loans
Loans in a specific geographic region / country / area
Loans above a size/value threshold
Other: ____________
Earthquakes
Mandatory for:
All loans
Loans in a specific geographic region / country / area
Loans above a size/value threshold
Other: ____________
Wildfires
Mandatory for:
All loans
Loans in a specific geographic region / country / area
Loans above a size/value threshold
Other: ____________
Drought
Mandatory for:
All loans
Loans in a specific geographic region / country / area
Loans above a size/value threshold
Other: ____________
Other: ____________
Mandatory for:
All loans
Loans in a specific geographic region / country / area
Loans above a size/value threshold
Other: ____________
What percentage of the loan portfolio is exposed to natural hazards?
________________________
Describe information sources [third parties, maps, etc.] used, and actions taken to mitigate natural hazard risks (maximum 200 words)
________________________
No
Q19
2.5 points , IL, E
ME3
Does the lender monitor energy ratings within the loan portfolio?
Yes
Select energy ratings and levels present within the entity's portfolio:
EU - Energy Performance Certificate
Percentage of portfolio covered: ____________%
Please report granular certification levels (must sum up to 100%):
% received A & B level: ____________%
% received C level: ____________%
% received D level: ____________%
% received E level: ____________%
% received F&G level: ____________%
Australia - NABERS Energy
Percentage of portfolio covered: ____________%
Please report granular certification levels (must sum up to 100%):
% received 5-6 stars: ____________%
% received 4-4.5 stars: ____________%
% received 3-3.5 stars: ____________%
% received 0-2.5 stars: ____________%
North America - ENERGY STAR
Percentage of portfolio covered (must sum up to 100%): ____________%
Percentage 75 or higher: ____________%
Percentage less than 75: ____________%
Government efficiency benchmark: ____________
Percentage of portfolio covered: ____________%
Other: ____________
Percentage of portfolio covered: ____________%
No
Q21
4 points , IL, E
ME4
Does the lender monitor green building certificates within its loan portfolio?
Yes
![[CertificationTableDebt]](/images/tables/certification_table_debt/y2018-42e77277.svg)
No
Q22
A list of provisionally validated certification schemes is provided in Appendix of the Reference Guide. If you wish to add a new scheme, please contact info@gresb.com, and you will be asked to complete the validation questions for the scheme (see Reference Guide Appendix).
4 points , IL, E
Risks & OpportunitiesRO1.1
Does the lender instruct valuation professionals to include sustainability related metrics in the valuation assignment?
Yes
Define framework
RICS Red Book – Global Standards 2017 with Mandatory application of VPGA8 Para 2.6 (c).
Sustainability and commercial property valuation - RICS GN, 2nd edition
Whole life carbon assessment for the built environment - RICS PS, 1st edition
Sustainability: improving performance in existing buildings - RICS GN, 1st edition
IPD/RICS Sustainability Inspection checklist
Lender defined/updated inspection checklist
Please select components
Equipment operating efficiencies - energy/water
Advanced building controls
Renewable energy installed/generated
Peak load energy demand reduction
On-site energy storage
Indoor environmental quality
Multi-modal transit access
Other: ____________
Other: ____________
Elaborate as to the degree of integration into the valuation assignment and how sustainability attributes are considered (maximum 200 words)
________________________
No
Q23.1
3 points , IL, G
RO1.2
Does the lender require periodic valuations during the loan term?
Yes
Identify items included
Property condition assessment reports
Energy ratings
Energy audits
Statements of energy performance
Building commissioning reports
Green building certification scorecard/report
Sustainability attributes not required
Other: ____________
No
Q23.2
2 points , IL, G
RO2
Does the entity/business unit provide additional financing for efficiency improvements?
Yes
Please define the scope
Stand-alone financing program
Ad-hoc lending approach
Financing is meant for these positive impacts:
Improved water efficiency
Reduced GHG emissions
Improved energy efficiency
Improved waste management
Use of re-usable materials (circular economy)
Other: ____________
Provide additional information as to eligibility requirements and impact tracking (maximum 200 words)
________________________
or URL____________
Indicate where in the evidence the relevant information can be found____
No
Q24
3.5 points , IL, E
RO3
Are there instances of sustainability KPIs used as loan covenants in your portfolio?
Yes
Select when covenants are used
For a specific property type
Explain in which cases this was applied: ____________
For a specific region
Explain in which cases this was applied: ____________
For specific financing
New construction
Tenant fit-outs and refurbishments
Deep retrofit/renovation
Other: ____________
Other: ____________
Other: ____________
Describe third-party standards referenced in covenants and granular KPI metrics used (maximum 200 words)
________________________
No
Q10
3 points , IL, G
RO4
Has the lender identified long-term sustainability risks that may impact the existing loan portfolio?
Yes
Please select identified risks
Regulatory risk
Obsolescence risk
Climate change risk
Other: ____________
Other: ____________
Describe actions to measure these risks and track impact (maximum 200 words)
________________________
No
Q26
4 points , MP, G
FUND1
Does the organization have a sustainability taskforce or committee?
Yes
Please define scope
High-level taskforce that oversees sustainability in the organization
Stand-alone committee focusing on incorporating sustainability in real estate lending
Select the issue(s) assigned to the taskforce
Develop/refine policies to include sustainability issues
Policy oversight/implementation
Product development
Research/analyze sustainability risk impacts
Determine and track relevant KPIs
Inform stakeholder reporting
Research industry best practice
Formal executive level advisory
Other: ____________
No
Q3
2 points
FUND2
Does the lender review borrower's sustainability-based actions during and/or after completion of property improvements?
Yes
Select actions used to ensure adherence
Third party document review
On-site property visit(s)
Review of final green building certification documents
Require energy rating within one year of occupancy
Other: ____________
Describe the process to ensure borrower adherence during improvements and any follow-up actions after completion (maximum 200 words)
________________________
No
Q15
1.5 points
FUND3
Does the entity/business unit request an asset improvement plan as part of due diligence?
Yes
Define when asset improvement plan is required
For specific property types
For specific regions
Asset falls below defined threshold
Loan size
Asset rating level
Other: ____________
Asset falls below external threshold (law, regulation)
Other: ____________
Elaborate which components are reviewed and any minimum improvements required (maximum 200 words)
________________________
No
NEW
2.5 points
FUND4
Does the entity/business unit assess the social impact of the loan?
Yes
Positive impact(s)
Affordable housing
Projects for underserved communities
Refurbishment of ageing buildings
'Property-backed' social businesses
Other: ____________
Negative exclusion
Please identify decision metrics: ____________
Other: ____________
No
NEW
2 points
FUND5
Has the entity/business unit developed a mitigation strategy for all identified long-term sustainability risks?
Yes
Describe long-term mitigation strategy elements and implementation process (maximum 200 words)
________________________
No
NEW
3 points
BANK1
Does the lender specifically offer loans that are aimed at positive environmental impact?
Yes
Select criteria borrower must achieve
Building certification(s)
Please elaborate applicable certification labels and levels: ____________
Energy rating
Please elaborate applicable certification labels and levels: ____________
Energy efficiency upgrades
Please elaborate on applicable threshold/improvement minimum: ____________
Water efficiency upgrades
Please elaborate on applicable threshold/improvement minimum: ____________
Renewable energy installations
Other: ____________
Explain who can receive these loans and any additional review checks applied (maximum 200 words)
________________________
No
Q18
2.5 points
BANK2
Does the lender provide incentives for loans with positive impact(s)?
Yes
Select all applicable:
Greater loan proceeds
Reduced interest rate
Greater LTV ratio
Increased debt service coverage ratio
Other: ____________
or URL____________
Indicate where in the evidence the relevant information can be found____
No
Q25
2 points
BANK3
Does the lender inspect the points and/or scorecard underlying a green building certification?
Yes
Review level
Focus only on used certification scheme
Analysis limited to certification scheme and level
Analysis focused on certification scheme, level and specific credit achievement(s)
Presence of specific prerequisites
Energy
GHG
Water
Waste
Transportation
Other: ____________
No
NEW
1.5 points
BANK4
Does the lender have dedicated capital for financing property improvements?
Yes
Long term commitment (until 2020 in millions): ____________
Describe progress to date:
Total value of loans provided for property improvements (within reporting period)
________________________
Describe targeted impacts and applicable property types/regions (maximum 200 words)
________________________
No
NEW
2 points
BANK5
Does the lender have internal notification system to identify future risks?
Yes
Select criteria used for determining risk level
Asset criteria
High energy intensities
High water intensities
Expired green building certifications
Lapsed energy ratings
Other: ____________
Borrower-level criteria
Absence of sustainability track record
Absence of sustainability commitment
Other: ____________
Other: ____________
Describe how the notification system is used including context on the borrower engagement process (maximum 200 words)
________________________
No
NEW
3 points