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2020

Fund

Scoring Document

Contents

Disclaimer: 2020 GRESB Infrastructure Assessments

This document was prepared in response to industry feedback and discloses the detailed scoring methodology for all indicators of the 2020 Infrastructure Fund Assessment. The Scoring Document is shared for information purposes in an effort to increase transparency around the Assessment, Methodology and Scoring processes. GRESB reserves the right to make edits to this document during the scoring and analysis period preceding the 2020 results launch.

Introduction

This document outlines the scoring methodology of the 2020 Infrastructure Fund Assessment. It is shared for information purposes, to provide transparency on the Assessment, Methodology and Scoring processes.

How to read this document

This document provides a breakdown of how each indicator is scored in the 2020 GRESB Infrastructure Fund Assessment. We recommend reading it in conjunction with the Reference Guide, which includes the reporting requirements and validation details for indicators.

Please note the following:

Scoring Methodology

GRESB Score

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

GRESB Score = Management Score + Performance Score

Management Score - Infrastructure Fund:

All participants that submit the Fund Assessment receive this score. The Component comprises 17 indicators.

Performance Score - Infrastructure Fund:

In order to receive a Performance Score - Infrastructure Fund, then at least 25% weight of underlying assets (based on equity invested), need to participate in the GRESB Asset Assessment. Once this threshold is met (and the assets have confirmed links and submitted assessments), then the entity receives a Performance Score - Infrastructure Fund. This score is a weighted average of the GRESB Score - Infrastructure Asset of all assets listed in the Summary of Entity Assets indicator (RC6). If less than 25% of assets participate in the GRESB Asset Assessment, the fund will only receive a Management Score - Infrastructure Fund. Non-reporting assets, or assets without a 'Confirmed’ connection status, will receive a GRESB Score - Infrastructure Asset of zero for the purposes of calculating the Performance Score - Infrastructure Fund. The weights reported in the table should be equity based; so that the weight of an asset reported in the table, represents the equity invested in the asset divided by the total equity invested in all assets in the fund. Funds are entitled to exclude specific assets from contributing to the Performance Score - Infrastructure Fund if there is a valid reason (e.g. greenfield asset, operational - less than six months, recently purchased - purchased and owned for less than six months, or recently sold - sold prior to July 1st, 2020.

GRESB Rating

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

Scoring Weightings:

The Management component is made up of 5 Aspects and 17 indicators with the exclusion of Entity & Reporting Characteristics. The below weights apply for 2020

Indicator Scoring:

There are five models used within indicators for scoring:

Note that selection of the 'Yes/No'responses in relation to the indicator question, will no longer be scored in 2020

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

Section One (Elements)

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

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

Diminishing increase in scoring: The idea behind this concept is that the fractional score achieved for each additional data point provided decreases as the number of provided data points increases. This means that the fractional score achieved for the first data point will be higher than the fractional score achieved for the second, which again will be higher than for the third, and so on.

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

Section 2 (Evidence)

Some indicators include an evidence section to verify information provided in section 1 (Elements). In these cases, the fractional score for the evidence section acts as a multiplier to the Section 1 fractional score. Mandatory evidence receives a multiplier of zero (0) for no evidence or not-accepted evidence, 0.5 for providing partially accepted evidence and 1 for providing fully accepted evidence. To clarify, the indicator will receive zero score unless the hyperlink and/or uploaded document is considered valid (i.e. partially or fully accepted). The final indicator score is then calculated as:

The total indicator score is then calculated as:

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

Example of indicator level scoring:

Example: LE5 indicator

1.65 points , G

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

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

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

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

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

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

Leadership

This aspect consists of 5 indicators (25.1% of the Management Component - Infrastructure Fund)

Leadership

2019 Indicator

1.3 points , G

This indicator is scored as a Two Section Indicator (i.e. Section 1: 'Elements' response and, Section 2: 'Evidence' response).

Section 1: The first section of this indicator is split into two subsections namely, i.) commitments obliging the entity to take action and ii.) commitments not obliging the entity to take action), each with different contributions to the section’s fractional score. Commitments obliging the entity to take action receive more score. It is not necessary to select all checkboxes in order to obtain the maximum score for this indicator.

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

Section 2: ‘Evidence’ is mandatory for this indicator. Therefore, no points will be awarded unless the hyperlink and/or the uploaded document is considered valid, based on the evidence criteria stated above. The evidence is validated which determines a multiplier, according to the table below:

Evidence: The evidence is manually validated and assigned a multiplier, according to the table below. The evidence must support the validation requirements. If any requirements are not met, the evidence may be partially accepted or not accepted depending on the level of alignment with the requirements.

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

1.65 points , G

This indicator is scored as a Two Section Indicator (i.e. Section 1: 'Elements' response and, Section 2: 'Evidence' response).

Section 1: Fractional scores are awarded to each strategy and then aggregated to calculate the section fractional score. It is not necessary to select all checkboxes in order to obtain the maximum score for this indicator. The strategies are not all assigned equal weights. The open text box, which describes the strategy and how it is being implemented, is for reporting purposes only and is not scored.

Section 2: ‘Evidence’ is mandatory for this indicator. Therefore, no points will be awarded unless the hyperlink and/or the uploaded document is considered valid, based on the evidence criteria stated above. Non-publicly available evidence is not assigned any extra fractional score, only publicly available evidence receives the final fractional score to earn maximum points. The evidence is validated which determines a multiplier, according to the table below:

Evidence: The evidence is manually validated and assigned a multiplier, according to the table below. The evidence must support the validation requirements. If any requirements are not met, the evidence may be partially accepted or not accepted depending on the level of alignment with the requirements.

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

1.3 points , G

This indicator is scored as a One Section Indicator. Evidence is not required. The score of this indicator is based on the level of responsibility of the selected person(s). Selecting all checkboxes is not required in order to score maximum points.

1.65 points , G

This indicator is scored as a One Section Indicator. Evidence is not required. Points are awarded based on the level of seniority of the responsible senior decision-maker. Checkboxes are equally weighted.

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

1.65 points , G

This indicator is scored as a Two Section Indicator (i.e. Section 1: 'Elements' response and, Section 2: 'Evidence' response).

Section 1: Fractional points are awarded depending on the participant having i.) financial or non-financial consequence of ESG targets and ii.) the selected group(s) of employees. Employee groups are not equally scored. Fractional points are then aggregated to calculate the indicator’s final score. It is not necessary to select all checkboxes to receive maximum points.

Evidence: The evidence is manually validated and assigned a multiplier, according to the table below. The evidence must support the validation requirements. If any requirements are not met, the evidence may be partially accepted or not accepted depending on the level of alignment with the requirements.

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

Policies

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

Policies

2019 Indicator

1 point , E

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

1 point , S

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

1 point , G

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

Reporting

This aspect consists of 4 indicators (16.5% of the Management Component - Infrastructure Fund)

Reporting

2019 Indicator

3.3 points , G

This indicator is scored as a Two Section Indicator (i.e. Section 1: 'Elements' response and, Section 2: 'Evidence' response).

Section 1: Fractional points are awarded to each disclosure method based on (1) reporting level, (2) alignment and (3) third-party review of the disclosure and fractional points are then aggregated to calculate the indicator’s final score. Disclosure methods are not equally scored. It is not necessary to select all reporting methods to receive maximum points.

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

Section 2: ‘Evidence’ is mandatory for this indicator for each reporting method selected. Therefore, no points will be awarded unless the hyperlink and/or the uploaded document is considered valid, based on the evidence criteria stated above. The evidence is validated which determines a multiplier, according to the table below:

Evidence: The evidence is manually validated and assigned a multiplier, according to the table below. The evidence must support the validation requirements. If any requirements are not met, the evidence may be partially accepted or not accepted depending on the level of alignment with the requirements.

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

1.65 points , G

This indicator is scored as a One Section Indicator. Evidence is not required. Fractional points are awarded based on the different selections of external stakeholders.

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

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

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

Not scored , G

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

Risk Management

This aspect consists of 3 indicators (44% of the Management Component - Infrastructure Fund)

Risk Management

2019 Indicator

6.6 points , G

This indicator is scored as a Two Section Indicator (i.e. Section 1: 'Elements' response and, Section 2: 'Evidence' response).

Section 1: Fractional points are awarded (equally) to each selected element of the pre-investment process and are then aggregated to calculate the total score for the section. The checkboxes are equally scored.

Section 2: ‘Evidence’ is mandatory for this indicator. Therefore, no points will be awarded unless the hyperlink and/or the uploaded document is considered valid, based on the evidence criteria stated above. The evidence is validated which determines a multiplier, according to the table below:

Evidence: The evidence is manually validated and assigned a multiplier, according to the table below. The evidence must support the validation requirements. If any requirements are not met, the evidence may be partially accepted or not accepted depending on the level of alignment with the requirements.

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

6.6 points , G

This indicator is scored as a Two Section Indicator (i.e. Section 1: 'Elements' response and, Section 2: 'Evidence' response).

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

  • The number of checkboxes (elements of process) selected.
  • The open text box response and compliance described in the “validation” section above.
  • The number of stakeholder groups selected.
  • Diminishing Increase in Score approach: As indicated by the blue line, some elements of this indicator are scored based on a Diminishing Increase in Score approach, per additional checkbox selected.

    Section 2 ‘Evidence’ is mandatory for this indicator. Therefore, no points will be awarded unless the hyperlink and/or the uploaded document is considered valid, based on the evidence criteria stated above. The evidence is validated which determines a multiplier, according to the table below:

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

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

Stakeholder Engagement

This aspect consists of 4 indicators (4.3% of the Management Component - Infrastructure Fund)

Stakeholder Engagement

2019 Indicator

Not scored , S

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

Not scored , S

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

Not scored , S

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

1.3 points , S

This indicator is scored as a One Section Indicator. Evidence is not required. Fractional points are awarded equally for reporting on inclusion and diversity of:

  • The entity’s governance
  • The entity’s employees
  • Reporting gender ratio data for both groups stated

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