Intent

Identify the participating entity. This information will be displayed in the GRESB Portal and in the entity’s Benchmark Report(s).

Requirements

Complete all applicable fields.

Terminology

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

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

Intent

Describe the real estate lender type and nature of the participating entity. Participants should select the most applicable type that fits the reporting entity. This criteria may be used for peer benchmarking purposes.

Requirements

Select one of the options and select all applicable sub-options.

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

Terminology

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

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.

Private entity: A company or fund that is not a listed or traded on any stock exchange. Also known as a non-listed entity.

mREIT: A Mortgage Real Estate Investment Trust is a specialized financial vehicle that provide funding for real estate through the purchase of mortgages and mortgage-backed securities. Listed mREITs are traded on a stock exchange.

Senior Debt: A form of debt financing that holds the highest claim on a borrower’s assets in the event of default or liquidation. Typically secured and lower in risk, it carries lower yields compared to other debt forms.

Subordinated Debt: Debt that ranks below senior debt in the repayment hierarchy. In a default scenario, subordinated debt is repaid only after all senior obligations have been satisfied, resulting in higher interest rates to compensate for the increased risk.

Unitranche Debt: A hybrid financing structure that combines both senior and subordinated debt into a single loan facility. This approach simplifies capital arrangements by providing one blended interest rate and consolidated terms reflective of the overall risk profile.

Club Deal An investment vehicle or structure with generally a limited number of investors investing in a common strategy. Typically, investors have more discretion and control than in a typical fund, and have veto rights over major decisions.

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.

Joint Venture: A vehicle where at least two parties share a common investment objective. Control over significant risk management decisions is not transferred to an external manager, but is exercised by members in the venture.

Separate Account: SMAs, also referred to as managed accounts, wrap accounts or individually managed accounts, are portfolios managed exclusively for the investor according to their investing and tax preferences and requirements.

Special Purpose Vehicle Subsidiary created by a parent company to isolate financial risk. Its legal status is of a separate company, with its own balance sheet.

Intent

Describe the activity year of commencement or establishment date of the entity.

Requirements

Provide the year of commencement/establishment.

Terminology

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.

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

Intent

Set the entity’s annual reporting year.

Requirements

Select one of the options.

Participants are required to specify the starting month of their fiscal year. If participants select Fiscal year, starting months between February and June must correspond to calendar years 2024/2025. For example, an entity reporting from April to March will be considered covering the period of April 2024 - March 2025. On the other hand, starting months between July and December must correspond to calendar years 2023/2024. For example an entity reporting from October to September will be considered as covering the period of October 2023 - September 2024.

The table below details the period for which information throughout the Assessment would be expected, should a given starting month be selected:

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 year: Responses provided in the Assessment must refer to the reporting year 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 year; however, the response does not need to have been true for the entire reporting year. GRESB does not favour the use of calendar year over fiscal year or vice versa, as long as the chosen reporting year is used consistently throughout the Assessment.

Intent

Describe the nature of the participating entity’s business. Participants should select the applicable answer and provide percentages per loan type.

Requirements

Complete all applicable fields.

Participants must provide portfolio split per sub-category at the end of reporting period.

Note: Sum of reported percentages should not exceed 100%.

Terminology

Loan originator: The lender that serves as the primary loan underwriter and provides proceeds to the borrower.

Loan purchaser: The party that purchases a loan or group of loans from a loan originator.

Securitized loan: Type of loan where multiple loans are pooled together, consolidated, and sold in tranches with specific payment and risk characteristics.

Syndicated loan: A large loan arranged by a group of international banks that form a syndicate, headed by a lead manager.

Green- / Social Loans: Financing facilities in which the use of proceeds is exclusively dedicated to projects with specific environmental and/or social objectives. These loans support initiatives such as renewable energy, energy efficiency improvements, affordable housing, the presence or attainment of building certifications or other projects that generate measurable ESG benefits.

Sustainability-Linked Loans: A form of financing where the loan terms, including the interest rate, are linked to the borrower’s achievement of predetermined sustainability or ESG performance targets. Should the borrower meet or exceed these targets, they may benefit from reduced borrowing costs or other favorable terms. This structure is designed to incentivize continuous improvement in sustainability performance while aligning financial benefits with responsible business practices.

References

Green Loan Principles

Social Loan Principles

Sustainability-Linked Loan Principles

Green Bond Guidelines

Intent

Set the currency for which the entity’s real estate portfolio of loans 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

State the size of the entity. Participants should report aggregate unpaid principal balance (UPB) due to the entity at the end of the reporting period.

Terminology

UPB: The unpaid portfolio balance is the total outstanding loan value of the entity’s portfolio at the end of the reporting period.

Unpaid principal balance (UPB) is a metric used in GRESB data analysis to identify the size of the reported portfolio.

Requirements

Complete the value in millions using the designated field (e.g. UPB of $75,000,000 must be reported as 75).

Do not write the currency, as this has been selected in Indicator RC1.

Intent

Metrics are needed to ensure comparability for 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

Provide information on the entity's portfolio location. This indicator is used for reporting purposes only.

Requirements

Select the predominant location in which the entity’s loans are located using the fraction of total unpaid principal balance. In order to select a location, at least 60% of the unpaid principal balance should be allocated to that location.

Note: The predominant country drop-down menu includes less granular options, such as sub-regions, regions, and "Globally Diversified".

References

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

Intent

This indicator assesses the entity's commitment to ESG leadership standards or principles. By making a commitment to ESG leadership standards or principles, an entity publicly demonstrates its commitment to ESG, uses organizational standards and/or frameworks that are universally accepted and may have obligations to comply with the standards and/or frameworks.

Requirements

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

URL: Hyperlink is mandatory for this indicator, but is used for reporting purposes only. Ensure that the hyperlink is not outdated and the relevant page can be accessed within two steps. The URL should demonstrate the existence of publicly available commitments to ESG/Net Zero leadership relating to each of the standards and/or principles selected.

Other: State the other public commitment. Ensure that the other answer provided is not a duplicate of a selected option above. It is possible to report multiple other answers.

Validation

This indicator is not subject to automatic or manual validation.

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

1 point, G

Scoring is based on the number of selected options. It is not necessary to select all options to achieve the maximum score.

See the Scoring Document for additional information on scoring.

Terminology

Canadian Investor Statement on Climate Change: The Canadian Investor Statement on Climate Change is a commitment by institutional investors to support the transition to a net-zero economy by 2050. Signatories pledge to integrate climate considerations into investment decisions, engage with companies on climate-related risks, and advocate for policies that align with the Paris Agreement.

ESG leadership standards and/or principles: International governmental or organizational standards, principles, frameworks, and/or initiatives that are universally accepted and include a public commitment (i.e., via a public register). These standards are governed independently from commercial interests of one or multiple groups. They are defined in alignment with international frameworks of advancing ESG with accountability and obligations to comply with the standards.

Global Investor Coalition on Climate Change: A collaboration among four regional partner organisations around the world to increase investor education and engagement on climate change and climate-related policies. Launched in 2012, the coalition provides a global platform for dialogue between and among investors and world governments to accelerate low-carbon investment practices, corporate actions on climate risk and opportunities, and international policies that support the goals of the Paris Agreement.

International Labour Organization (ILO) Standards: International labour standards are legal instruments drawn up by the ILO's constituents (governments, employers and workers) and setting out basic principles and rights at work.

Multifamily Impact Framework: A market-based, common framework of industry impact principles and reporting guidelines for multifamily properties in the United States.

Net Zero leadership standards and/or principles: International governmental or organizational standards, principles, frameworks, and/or initiatives that are universally accepted and include a public commitment (i.e., via a public register). These standards are governed independently from commercial interests of one or multiple groups. They are defined in alignment with international frameworks on Net Zero with accountability and obligations to comply with the standards.

OECD - Guidelines for multinational enterprises: The OECD Guidelines for Multinational Enterprises are recommendations addressed by governments to multinational enterprises operating in or from adhering countries. They provide non-binding principles and standards for responsible business conduct in a global context consistent with applicable laws and internationally recognised standards.

PRI: The PRI works with its international network of signatories to put the six Principles for Responsible Investment into practice. Its goals are to understand the investment implications of environmental, social and governance issues and to support signatories in integrating these issues into investment and ownership decisions.

RE 100: RE100 is a global initiative uniting businesses committed to 100% renewable electricity, working to massively increase demand for and delivery of renewable energy. RE100 is convened by The Climate Group in partnership with CDP.

Science Based Targets initiative: The initiative is a collaboration between CDP, the United Nations Global Compact, World Resources Institute, and the World Wide Fund for Nature (WWF) which has a goal of enabling companies setting science based targets to reduce GHG emissions.

Science Based Targets initiative - Net Zero Standard commitment: The SBTi’s Corporate Net-Zero Standard is a framework for corporate net-zero target setting in line with climate science. It includes the guidance, criteria, and recommendations companies need to set science-based net-zero targets consistent with limiting global temperature rise to 1.5°C.

Task Force on Climate-related Financial Disclosures (TCFD): The Task Force on Climate-related Financial Disclosures will develop voluntary, consistent climate-related financial risk disclosures for use by companies in providing information to investors, lenders, insurers, and other stakeholders.

The Climate Pledge: The Climate Pledge is a commitment to reach net-zero carbon emissions by 2040—10 years ahead of the Paris Agreement.

Transform to Net Zero: Transform to Net Zero aims to deliver guidance and business plans to enable a transformation to net zero emissions, as well as research, advocacy, and best practices to make it easier for the private sector to not only set ambitious goals–but also deliver meaningful emissions reductions and economic success.

ULI Greenprint Net Zero Carbon Operations Goal: The ULI Greenprint goal is to reduce the carbon emissions of its members' collective buildings under operational control to net zero by the year 2050.

UN Environment Programme Finance Initiative: The UNEP FI is a partnership between United Nations Environment and the global financial sector with a mission to promote sustainable finance.

UN Global Compact: The UN Global Compact is a voluntary initiative based on CEO commitments to implement universal sustainability principles and to take steps to support UN goals.

UN Sustainable Development Goals: The Sustainable Development Goals are a universal call to action to end poverty, protect the planet and improve the lives and prospects of everyone, everywhere. The 17 Goals were adopted by all UN Member States in 2015, as part of the 2030 Agenda for Sustainable Development which set out a 15-year plan to achieve the Goals.

UNFCCC Climate Neutral Now Pledge: Climate Neutral Now encourages and supports organizations and other interested stakeholders to act now in order to achieve a climate neutral world by 2050 as enshrined in the Paris Agreement.

WorldGBC’s Net Zero Carbon Buildings Commitment: The Net Zero Carbon Buildings Commitment (the Commitment) challenges companies, cities, states and regions to reach Net Zero operating emissions in their portfolios by 2030, and to advocate for all buildings to be Net Zero in operation by 2050.

References

Canadian Investor Statement on Climate Change

International Labour Organization, International Labour Organization Standards, 2014

Multifamily Impact Framework

Net Zero Asset Managers initiative

OECD Guidelines for Multinational Enterprises

PAII Net Zero Asset Owner Commitment

Science Based Targets initiative

Task Force on Climate-related Financial Disclosures, 2015

The Climate Pledge

Transform to Net Zero

ULI Greenprint Net Zero Carbon Operations Goal

UN Global Compact Principles, 2000

UN Sustainable Development Goals

UN-convened Net-Zero Asset Owner Alliance

UNEP Finance Initiative Statement, 1992

UNFCCC Climate Neutral Now Pledge

UNPRI, PRI Reporting Framework, 2018

Intent

Clear Environmental, Social, and Governance (ESG) objectives help participants identify material issues and integrate them into the overall day-to-day management practices.

Requirements

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

URL: Hyperlink is mandatory for this indicator when publicly available is selected, but is used for reporting purposes only. Ensure that the hyperlink is not outdated and the relevant page can be accessed within two steps. The URL should demonstrate the existence of publicly available ESG objectives for each of the objectives selected.

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

1. The scope of the objectives. The text should identify key ESG 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.

Validation

This indicator is not subject to automatic or manual validation.

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

2 points, G

Scoring is based on the number of selected options. It is not necessary to select all options to achieve the maximum score.

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

See the Scoring Document for additional information on scoring.

Terminology

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

Environmental objectives: Overall goals arising from policies that an entity sets itself to achieve regarding relevant environmental issues, such as greenhouse gas emissions, renewable energy, or sustainable procurement. These objectives should be quantifiable and correlated with the entity's ambitions. The objectives should be quantifiable and correlated with the entity'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.

Governance objectives: Overall goals arising from policies that an entity sets itself to achieve regarding relevant governance issues, such as bribery and corruption, cybersecurity, or board composition. These objectives should be quantifiable and correlated with the entity's ambitions.

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.

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.

Social objectives: Overall goals arising from policies that an entity sets itself to achieve regarding relevant social issues, such as customer satisfaction, employee engagement, or stakeholder relations. These objectives should be quantifiable and correlated with the entity's ambitions.

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

Intent

Indicate actions that participant takes to achieve sustainability objectives in LLE2. Participants must select actions that were in-place during the reporting period. Additional context on implementation and tracking actions must be included.

Requirements

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

Open text box: Description provided should fully support each checkbox selected, along with the following elements:

1. Describe the connection between objectives and selected actions.
2. Describe the on-going monitoring process to track implementation.

State actions that participant takes to achieve sustainability objectives. These actions must be related to commercial real estate lending.

Validation

Other: State the action that participant takes to achieve sustainability objectives in LLE2. Ensure that the other answer provided is not a duplicate of a selected option above. It is possible to report multiple other answers. If multiple other answers are acceptable, only one will be counted towards scoring

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

3 points, G

Scoring is based on the number of selected options. It is not necessary to select all options to achieve the maximum score.

Other: The 'Other' answer is manually validated and points are contingent on the validation decision.

See the Scoring Document for additional information on scoring.

Terminology

Asset-level consumption data: information regarding energy/water/waste use intensities and overall efficiency of an asset.

External ESG standard: Refers to third party guidance/standards that focuses on ESG integration/management.

Financing for property improvements: Refers to dedicated financing for borrower activities to alter/improve existing buildings. May include major renovation and retrofit.

Impact analysis of new construction/major renovation: Process of identifying the potential consequence of new development and/or alterations to existing asset that affects more than 50 percent of the building floor area.

Standalone sustainable lending policy: Policy or guidance document that outlines real estate lending criteria and includes sustainability-related metrics/factors.

Sustainability commitment: Long and/or short term aims connected to specific metrics/impacts made by the lender.

Sustainability profile: A report/scorecard that includes information about economic, environmental and governance performance and commitments of the borrower.

Intent

The presence of senior management dedicated to ESG and/or climate-related risks and opportunities, increases the likelihood that objectives on these topics will be met. A structured process to keep the most senior decision-maker informed on the entity’s ESG/climate-related performance increases accountability and encourages continuous improvement.

Requirements

Select yes or no. If yes, select the applicable sub-option.

Senior decision-maker: The entity’s most senior decision-maker on ESG and climate is expected to be actively involved in the process of defining the ESG and climate related objectives, and should approve associated strategic decisions regarding ESG and climate.

Details of employee: Participants must provide the name and job title of the relevant employee. This information will be used for reporting purposes only.

Open text box: The content of this open text box is not used for scoring, but will be included in the Benchmark Report. Participants should 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) realized ESG performance against objectives, (ii) updates regarding long-term strategic objectives, (iii) updates/notifications regarding regulatory changes or (iv) updates regarding proposed actions to improve the performance of the assets.

Validation

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. Ensure that the other answer provided is not a duplicate of a selected option above. Report only one other answer. Note that Fund/Portfolio manager cannot be used as an ‘Other’ answer unless a written statement is included in the open text box confirming that the individual is a senior member.

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

2 points, G

Scoring of this indicator is equal to the fraction assigned to the selected option, multiplied by the total score of the indicator.

Other: The 'Other' answer is manually validated and points are contingent on the validation decision.

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

See the Scoring Document for additional information on scoring.

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.

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

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

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.

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 decision-maker accountable for climate-related issues: A senior individual with sign off (approval) authority for approving strategic climate-related 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.

Senior decision-maker accountable for ESG: A senior individual with sign off (approval) authority for approving strategic ESG 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.

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

Intent

This indicator identifies whether, and how, ESG issues are addressed in personnel performance targets. It also identifies how the ESG-related objectives outlined in LLE2 are reflected within the organizational structure. Including ESG factors in annual performance targets for employees can increase the entity’s capacity to improve ESG performance.

Requirements

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

If the targets and consequences apply to all employees of the entity, select all relevant personnel types in the indicator.

Validation

The provided evidence must cover all the following elements: 

1. Existence of ESG-related performance targets: the evidence must demonstrate that annual ESG performance targets are explicitly tied to the selected personnel groups.

   • If ESG objectives apply to all employees, the evidence must clearly state that. Note that language that references all employees will support all personnel groups except the Board of Directors.   For example, a policy document stating that sustainability goals are mandatory for all employees during performance reviews would suffice.
   • If ESG objectives are specific to certain personnel groups, the evidence must clearly link the targets to only those groups. For example, a performance review template that explicitly requires portfolio managers to meet carbon emission reduction targets for client travel would suffice.

2. Personnel group applicability: targets must relate to all members within the selected personnel groups.

   • If the ESG target applies to only one individual within a broader personnel group, this must be reported under the "Other" answer.
   • For personnel groups consisting of a single individual, the evidence must explicitly clarify this in the provided documentation or the open text box.
   • If an entity provides evidence showing how an ESG target has a financial consequence for a specific employee within a personnel group and clearly states that the same target and consequence apply to the remaining employees in the group, this evidence will be considered sufficient to support the applicability of the target for the entire group.

3. Financial consequences tied to ESG performance: the evidence must explain the financial implications (positive or negative) for meeting or failing to meet ESG targets for each selected personnel group. This includes clearly linking the financial consequences (e.g., bonuses, pay adjustments, penalties, etc.) to the ESG targets of each selected personnel group. The connection must be clearly defined within the provided documents, open text box, or cover page.

Examples of acceptable evidence: policy documents, process guidelines, employee performance reviews for the reporting year, employment contracts or documentation describing financial consequences (e.g., bonus schemes, web pages). Note that sensitive information may be redacted from the documents as long as the requirements outlined above are clearly met. If the consequences are not clearly defined and connected to the ESG targets within the provided evidence, then sufficient explanation must be provided within the evidence open text box.

Other answers:  state the specific employee type and ensure the following:

• Other answers should relate to groups of employees such as acquisition, development, or facilities teams, or specific personnel who have ESG targets assigned to them.
• If a target relates to a single employee within a personnel group, this must be reported as an "Other" answer. The submission must include the employee's name, title, and personnel group in the open text box.
• Other answers cannot be a duplicate of a previously selected option. For example, ‘sustainability team’ should not be used if ‘dedicated staff on ESG issues’ is already selected.
• Multiple Other answers are acceptable, but only one will count toward the score.

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

2 points, G

Scoring is based on the number of selected options. It is not necessary to select all options to achieve the maximum score.

Evidence: The evidence is manually validated and points are contingent on the validation decision.

Other: The 'Other' answer is manually validated and points are contingent on the validation decision.

See the Scoring Document for additional information on scoring.

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.

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

Dedicated staff on ESG issues: Individuals whose core responsibility is to address ESG issues.

ESG portfolio manager: A person or a group who manages the ESG strategy and implementation of a portfolio of real estate investments.

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

External managers or service providers: Organizations, businesses or individuals that offer services to others in exchange for payment. These include, but are not limited to, consultants, agents and brokers.

Financial consequences: Predetermined monetary benefits (or detriments) incorporated into the employee compensation structures. Examples include bonuses, raises, profit-sharing, financial rewards, and financial incentives. The financial consequences are contingent upon the achievement of the annual performance targets.

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 analysts: A person or group with expertise in evaluating financial and investment information, typically for the purpose of making buy, sell and hold recommendations for securities.

Investment committee: A group of selected people who establish a formal process to manage the plan’s investment strategy.

Investor relations: A person or a group that provides investors with an accurate account of company affairs so investors can make better informed decisions.

References

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

Intent

Guidance document(s) used for commercial real estate lending that include sustainability aspects. Participants must upload document evidence, and select applicable use case(s).

Requirements

Select Yes or No. If Yes, please select all applicable checkboxes and a radio button.

Radio buttons: Only one answer is possible. Please select the most applicable.

Other: Answers provided under 'Other' must be outside the options listed in the indicator to be valid. State a loan origination and/or follow-up step when this guidance document is used/applied.

Reporting period: Answer must refer to the reporting period as identified in EC5.

Reporting level: Answer provided must refer to the entity / business unit, not a broader organization.

For real estate debt funds and MREITs this means that response should be provided at the fund / entity level.

For institutional lenders and others this refers to the real estate lending [unit] within the organization.

Validation

The evidence and ‘other’ answer provided will be subject to manual validation.

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 active and that the relevant page can be accessed within two steps. It is possible to upload multiple documents, as long as it’s clear where information can be found. A piece of supporting evidence document or URL cannot be uploaded for more than one disclosure method selected, i.e., identical documents will not be accepted for more than one disclosure type.

Evidence may include but are not limited to:

• formal policy that outlines key lending procedures, processes and uses of sustainability-related metrics/thresholds.
• any other guidance document applicable to the entity / business unit that outlines sustainability-related metrics/thresholds applicable in the lending decision-making process.

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

3 points, G

Scoring of this indicator is equal to the fraction assigned to the selected option, multiplied by the total score of the indicator.

Evidence: The evidence is manually validated and points are contingent on the validation decision.

Other: The 'Other' answer is manually validated and points are contingent on the validation decision.

See the Scoring Document for additional information on scoring.

Terminology

Collateral assessment: Process that evaluates property pledged by a borrower to secure a loan.

Loan approval: Formal authorization from lender that allows borrower to receive a loan.

Loan monitoring: Systematic approach on gathering of loan specific KPIs throughout the loan term.

Loan screening: Internal process focused on gathering and analysing available data related to the loan. It also includes uncovering and acknowledging risks associated with a specific lending decision.

Intent

Participants should select all sustainability-related requirements that are present in the commercial real estate lending policy/guidance document (see LPO1). Please elaborate on implementation actions.

Requirements

Select Yes or No. If Yes, please select applicable checkboxes and complete the open text box.

This indicator contains four options to provide an answer. After selecting Yes, state the sustainability-related metrics included in the guidance document.

1. Under 'Asset-specific metrics' participants should specify which metrics are included in the document.
2. Under 'Project Scope' participants should specify real estate scope of the loan.
3. Under 'Property type' participants should specify the applicable property type.
4. If there any location considerations, the participant should select the 'Regional/location considerations' checkbox.

Open text box: Description provided should fully support each checkbox selected, along with the following elements:

1. Describe practical application/use of the guidance document;
2. Elaborate on how guidance components are related to sustainability objectives in real estate lending.

Other: Answers provided under 'Other' must be outside the options listed in the indicator to be valid.

Validation

Other: State the specific sustainability-related metric/aspect which is included in the guidance document. Ensure that the other answers provided are not a duplicate of a selected option above. The 'Other' answers are manually validated.

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

3 points, G

Scoring is based on the number of selected options. It is not necessary to select all options to achieve the maximum score.

Other: The 'Other' answer is manually validated and points are contingent on the validation decision.

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

See the Scoring Document for additional information on scoring.

Terminology

Energy consumption: the use of energy by the asset.

Energy Rating: A scheme that measures the energy efficiency performance of buildings.

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.

Industrial: Includes distribution warehouses, flex, manufacturing and self-storage.

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 year.

New construction: Includes all borrower activities to obtain or change building or land use permissions and financing.

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

Refurbishment: Renovation or redecoration works undertaken by a landlord or tenant.

Residential: Refers to buildings with at least five residential units including apartments and student housing.

Waste diversion: Actions that focus on diverting wastes from landfills. This may include actions to decrease waste reduction at the source and recycling and reusing materials that are non-biodegradable.

Water consumption: the use of water resources by the asset.

Intent

This indicator assesses the level of ESG disclosure undertaken by the entity. It also evaluates the entity’s use of third-party ESG reporting review to ensure the reliability, integrity, and accuracy of ESG disclosure. Disclosure of ESG information and performance demonstrates an entity’s transparency in explaining how ESG policies and management practices are implemented by the entity, and how these practices impact the business. In addition, third-party ESG disclosure review increases investors’ confidence in the information disclosed.

Requirements

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

In all cases:

1. Select the applicable reporting level. If the entity reports at multiple levels, the most detailed reporting level should be selected.
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. State whether the methods of reporting are checked, verified or assured (select one option; the most detailed level of scrutiny to which the disclosure was subject to).
4. Select the assurance/verification standard (if applicable) from the dropdown menu. If reporting is aligned to more than one standard, select the standard with which there is most alignment. Provide document upload or URL.

The full list of accepted schemes is found in Appendix 8 - Assurance and Verification Schemes of the Reference Guide. Additional schemes may also receive recognition if they meet GRESB’s criteria. To submit a new scheme for review, please contact the GRESB team. The final deadline for submitting a new assurance/verification scheme for review by the GRESB team is March 15th. Schemes submitted for review after March 15th will not be reviewed until the subsequent reporting year.

Validation

The evidence and ‘other’ answer provided will be subject to manual validation.

Other: Add a disclosure method that applies to the entity but is not already listed. Ensure that the ‘Other’ answer provided is not a duplicate or subset of another option selected. It is possible to report multiple ‘Other’ answers. If multiple ‘Other’ answers are acceptable, only one will be counted towards scoring.

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 active and that the relevant page can be accessed within two steps. It is possible to upload multiple documents, as long as it’s clear where information can be found. A piece of supporting evidence document or URL cannot be uploaded for more than one disclosure method selected, i.e., identical documents will not be accepted for more than one disclosure type.

General evidence requirements:

1. Content requirements:All evidence must explicitly address ESG and include actions and/or performance undertaken by the entity; a list of general goals and/or commitments is not sufficient. In order for evidence to be accepted, it should cover at least two of the three pillars of ESG (i.e., environmental, social and/or governance). If it meets all other requirements but only one pillar is referenced, the evidence will be ‘partially accepted’.
1. An exception to this requirement is given for ‘Dedicated Section on Corporate Website.’ If the website covers actions and/or performance for at least one of the three pillars and details about the ESG program, strategy, and/or objectives, it will be fully accepted.
2. Reporting level requirements: Answers must clearly reference the applicable reporting level. If entity-level is chosen, then the ESG actions and/or performance must be directly associated with the entity by name. For example, a fund manager or corporate group can only select entity-level reporting if there is a specific section of the disclosure dedicated to the entity that fully meets validation requirements. Group-level disclosures that do not have ESG actions and/or performance specific to the reporting entity are not entity-level reports.
3. Alignment requirements:The evidence provided must support the alignment chosen (if applicable). If listing an alignment that is not predefined, the external standard or guideline must be specific and entered in full, (i.e. avoid using acronyms). The evidence should clearly mention the standard that the disclosure is aligned with.
4. Third-party review requirements: The evidence provided must support the selected level of third party review (if applicable). The assurance and/or verification of ESG disclosure is separate from the assurance and/or verification of performance data reported in the Performance Component. The assurance and/or verification statement and selected scheme must be included within the evidence uploaded for the selected disclosure method. Supplementary evidence such as a letter can be provided if the disclosure itself does not include confirmation of review. The evidence relating to the check, verification, and/or assurance must be in reference to the uploaded disclosure method provided (i.e., Annual Report). If submitting an assurance and/or verification letter externally to the report, it must be made clear that the letter applies to the respective evidence. The scope of assurance/verification of the selected option should cover all ESG-related information contained in the report and not only the environmental data. 
5. Disclosure of GRESB results alone (i.e. without any additional analysis or ESG performance disclosure) is not sufficient for any disclosure type.
6. The scope of assurance/verification of the selected option should cover all ESG-related information contained in the report and not only the environmental data.

Specific evidence requirements per disclosure type:

1. Evidence requirements IR report: The document upload or URL provided must contain clear evidence of alignment with the IFRS Integrated Reporting Framework (formerly the International Integrated Reporting Council (IIRC) Integrated Reporting Framework (December 2013)) within the report itself. Note that references to the IFRS accounting standards, IFRS S1 or S2, and SASB are not equivalent. Integrated reports can reference 2024, 2023, or 2022 performance and/or actions.

2. Evidence requirements Annual Report: Annual Reports should cover the reporting year as described in EC4. Annual Reports from the prior reporting year detailing actions and/or performance are acceptable if it is explicitly stated that the Annual Report for the current reporting year has not yet been published. If an entity reports on a semi-annual basis, both semi-annual reports must be uploaded to cover the 12 months of reporting identified in EC4. Similarly, if an entity reports quarterly, all 4 quarterly reports must be uploaded to cover the 12 months of reporting identified in EC4.

3. Evidence requirements Standalone sustainability report: Sustainability reports referencing the current or previous reporting year as described in EC4 are accepted.

4. Evidence requirements Dedicated section on corporate website: The webpage(s) must include ESG actions and/or performance undertaken by the entity during the reporting year as given in EC4, explicitly addressing at least one pillar of ESG (but can address all three ESG pillars). A hyperlink to the Annual Report or Sustainability Report, or any other documents are not valid. In addition, a list of general goals and/or commitments on the website is not sufficient.

5. Evidence requirements ‘Other’: An additional disclosure method such as third-party forms of disclosure like CDP Questionnaires or UN PRI Transparency Reports is considered valid. Disclosure methods with a different reporting level can also be provided (i.e. if an entity-level ESG report is provided for Stand-alone sustainability report, a group-level ESG report can be provided for ‘Other’.) Quarterly updates, Board reports, investor presentations, newsletters, or press releases disclosing ESG actions and/or performance are considered valid. Ensure applicability to the reporting year as provided in EC4 based on the actions and/or performance disclosed.

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

4 points, G

Scoring is based on the number of selected options. It is not necessary to select all options to achieve the maximum score.

Evidence: The evidence is manually validated and points are contingent on the validation decision.

Other: The 'Other' answer is manually validated and points are contingent on the validation decision.

See the Scoring Document for additional information on scoring.

Terminology

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

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

Externally checked: Applies to instances when a third party has reviewed the data in a structured and consistent process, but no official certification has been awarded.

Externally verified: Applies to instances where a third party has reviewed the reporting against an existing scheme. When this checkbox is ticked, participants must select the scheme name from the dropdown.

Externally assured: Applies to instances where a third party has reviewed the data against an existing scheme. When this checkbox is ticked, participants should select the scheme name from the dropdown.

• Note: GRESB treats verification and assurance equally in the context of the assessment.

Dedicated section on corporate website: A section of the entity’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 participating entity.

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

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

Group: Select this reporting level if the report (e.g., Annual Report) includes the entity being assessed but presents data aggregated for the broader group of companies to which the entity belongs, without detailed performance data specific to the entity itself.

Integrated Report: A report that is aligned with the requirements of the International Financial Reporting Standards Foundation (IFRS) Integrated Reporting Framework (formerly the International Integrated Reporting Council (IIRC) Integrated Reporting Framework). Integrated reporting joins relevant information about both the entity's financial and non-financial strategy, governance, performance, and prospects in a manner that conveys the holistic commercial, social, and environmental context in which it operates.

Investable Entity / Real Estate Loan Portfolio: Select this reporting level if the disclosure (e.g., Annual Report) directly references the investable entity / Real Estate Loan Portfolio being assessed. This includes disclosures that provide specific and detailed actions or performance data for the book submitted in the GRESB Assessment, even if the report also covers other investable entities / Real Estate Loan Portfolios. In case you are a real estate lending unit of a bank or an insurance company, you are submitting the Assessment for the Real Estate Loan Portfolio of your financial organization and the disclosure specifically mentions the Real Estate Loan side of the organization, this option should be selected.

Investment Manager: Select this reporting level if the disclosure (e.g., Annual Report) includes the entity being assessed but does not provide specific or detailed performance data for it. Instead, the disclosure focuses on aggregated information about the investment management entity or company overseeing the participating entity.

Standalone sustainability report: A report solely dedicated to sustainability or ESG performance.

Reporting Level:

1. Entity: related specifically to the named entity, where entity is defined as the portfolio for which you are submitting an Assessment response.
2. Investment Manager: related to the investment management entity 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.

References

ANREV Sustainability Reporting Guidelines, 2016

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

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

308-2 IIRC Integrated Reporting Framework, 2013

INREV Sustainability Reporting Guidelines, 2023

Intent

This indicator examines specific actions taken to limit exposure to governance-related risks. It refers to the implementation of the policy that addresses risks from exposure to governance issues.

Requirements

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

Validation

Other: State the other system or procedure in place. Ensure that the other answer provided is not a duplicate of a selected option above (e.g., Anti-bribery training when 'Training related to governance risks for employees' is selected). It is possible to report multiple other answers. If multiple other answers are acceptable, only one will be counted towards scoring

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

2 points, G

Scoring is based on the number of selected options. It is not necessary to select all options to achieve the maximum score.

Other: The 'Other' answer is manually validated and points are contingent on the validation decision.

See the Scoring Document for additional information on scoring.

Terminology

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

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

Training related to governance risks for employees: 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.

References

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

Intent

This indicator identifies if the entity performs asset-level environmental and/or social assessments as a standard part of the due diligence process for new originations.

Risk assessments help to reduce exposure to long-term sustainability risks. Integration of sustainability risk assessments into the origination process demonstrates 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.

Requirements

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

Validation

Other: State the other risk factor assessed. Ensure that the other answer provided is not a duplicate of a selected option above (e.g., seismic assessments when ‘Natural hazards’ is selected). It is possible to report multiple other answers. If multiple other answers are acceptable, only one will be counted towards scoring.

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

4 points, G

Scoring is based on the number of selected options. It is not necessary to select all options to achieve the maximum score.

Other: The 'Other' answer is manually validated and points are contingent on the validation decision.

See the Scoring Document for additional information on scoring.

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. Examples of building safety topics include fire safety, structural safety, and electrical and gas safety during development. Building safety strategies can include, but are not limited to, having site inspections at key construction milestones, having a reporting system in place for recording building safety observations, and having designated personnel to oversee building safety compliance during development.

Climate change adaptation: Preparation for long-term change in climatic conditions or climate related events. Examples 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.

Compliance with regulatory requirements: 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.

Contaminated land: Land 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 lender evaluates a target asset for an origination, 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 service-related impacts, as well as environmental compliance and expenditures.

Greenhouse gas 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 sulfur hexafluoride (SF6). They are expressed in CO2 equivalents (CO2e).

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

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.

Natural hazards: Naturally occuring physical phenomena that have the potential to cause serious disruptions to the functioning of a community. Natural hazards can be geophysical, hydrological, climatological, meteorological, or biological. Examples include but are not limited to earthquakes, wildfires, hurricanes, and droughts.

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, social housing, 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.

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.

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

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

Intent

The clear articulation of a strategy helps fund managers navigate risks and opportunities as they arise. Integrating an understanding of resilience to climate-related risks and opportunities into business strategy fosters alignment between the management of climate-related issues and the overall strategy of the entity. It is also important to communicate how the strategy would be able to handle scenarios in which the global economy transitions to become “lower-carbon”.

Additionally, an entity’s disclosure of how its strategies might change to address potential climate-related risks and opportunities is a key step to better understanding the potential implications of climate change on the entity.

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. Participants should use this open text box to communicate on:

1. Description of how resilient the entity’s strategy is to climate-related risks and opportunities. The text should define “resilience” in the context of the entity. If applicable, explain how the entity’s strategy is operationalized into policies and management actions; where the entity’s strategy may be affected by climate-related risks and opportunities; and how its strategy might change to address such potential risks and opportunities;
2. The consideration of the transition to a lower-carbon economy consistent with a 2°C or lower scenario and, where relevant to the organization, scenarios consistent with increased physical climate-related risks;
3. Associated time horizon(s) considered.

Validation

This indicator is not subject to automatic or manual validation.

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

4 points, G

Scoring for this indicator is based on the integration of resilience into the climate strategy.

See the Scoring Document for additional information on scoring.

Terminology

Climate-related opportunities: The opportunities produced by efforts to mitigate and adapt to climate change, such as through resource efficiency and cost savings, the adoption and utilization of low-emission energy sources, the development of new products and services, and building resilience along the supply chain. Climate-related opportunities will vary depending on the region, market, and industry in which an organization operates

Climate-related risks: The risks associated with the potential negative impacts of climate change on an organization. These are generally categorized as either transition risks or physical risks. See Transition risks and Physical climate-related risks below.

Overall business strategy: The entity’s long-term strategy for meeting its objectives.

Physical climate-related risks: The risks associated with the potential negative direct and/or indirect impacts of event-driven (acute) or driven by longer-term shifts in climatic patterns (chronic). Physical risks emanating from climate change can be event-driven (acute) such as increased severity of extreme weather events (e.g., cyclones, droughts, floods, and fires). They can also relate to longer-term shifts (chronic) in climatic patterns such as precipitation and temperature that affect entities. Participants who possess long-lived or fixed assets, operate in climate-sensitive regions, rely on water availability, or have value chains exposed to the aforementioned hazards, are likely to be exposed to physical climate-related risk.

Physical (climate) scenarios: Scenarios used in the exploration and assessment of physical climate risks. These scenarios can include projections of a host of climatic variables, including the frequency and severity of particular extreme weather events. Generally, these scenarios are linked to one of the Representative Concentration Pathways (RCPs). The RCPs, adopted by the IPCC [Intergovernmental Panel on Climate Change], have been used for analysis by ensembles of climate models and have become associated with particular climate targets. RCP2.6, which represents an atmospheric concentration profile ending at a radiative forcing of 2.6 watts per square meter at the year 2100, is associated with an atmospheric limit of 450 parts per million CO2‑equivalent, and is taken as satisfying a 2°C goal.

Transition risks: The risks associated with the transition to a lower-carbon global economy. These risks most commonly relate to policy and legal developments, technological changes, market responses, and reputational concerns. These risks are particularly relevant for actors with high GHG emissions within their value chain and are thus sensitive to policy and regulatory actions aimed at emissions reductions, energy efficiency, etc.

Transition scenarios: Scenarios that describe the evolution of the global economy to a lower-carbon state. These scenarios often describe the interactions between various sectors of the economy and link such interactions to wider narratives around the relative aggression of the transition to lower carbon economics. Commonly used transition risk scenarios include those produced by the IEA [International Energy Agency] including its Sustainable Development Scenario (SDS), Beyond 2 Degrees Scenario (B2DS), and Net Zero Emissions by 2050 scenario (NZE2050), the NGFS [Network for Greening the Financial System], and the Inevitable Policy Response’s Forecast Policy Scenario (FPS). Real Estate Participants might also use the CRREM decarbonization pathways. Infrastructure Participants might also use pathways from TPI [Transition Pathway Initiative] or those in line with the SBTi [Science Based Targets initiative].

2°C or lower scenario: A 2°C scenario is one in which the world is able to hold the increase in global average temperature to 2°C above pre-industrial levels. Such a scenario often entails a moderate to aggressive shift in the economy to a lower-carbon state and includes the associated severity of transition risks. A “lower” scenario in this context is one in which the global economy changes in such a way that the temperature rise is held to lower than a 2°C global average temperature rise above pre-industrial levels. A 1.5°C scenario is an example of a lower scenario.

Scenario analysis: Scenario analysis refers to the systematic use of scenarios in order to better understand the relevant impacts on an organization, and facilitate the creation of robust strategies under probable and potential future developments. It can help the participant to inform their financial planning process and provide insights into their strategies’ resilience to different climate-related scenarios.

References

Carbon Risk Real Estate Monitor

International Energy Agency. Achieving Net Zero Emissions by 2050.

IPCC. Climate Change 2021 The Physical Science Basis

UNPRI, Inevitable Policy Response

Network for Greening the Financial System. NGFS Climate Scenarios for central banks and supervisors

Science Based Targets initiative

TCFD. (2017) “Final Report: Recommendations of the Task Force on Climate-related Financial Disclosures.”

Transition Pathway Initiative

Van Vuuren, D.P., Edmonds, J., Kainuma, M., et al. (2011) “The Representative Concentration Pathways: An Overview.” Climatic Change 109: 5.

Intent

The intent of this indicator is to assess whether and how the entity uses a systematic approach for identifying transition risks that could have a material financial impact on the entity.

A comprehensive system for managing transition risks begins with a systematic process for identifying risks that could have a material financial impact on the organization or entity. Such a process ensures that subsequent risk assessments and analyses are focused on the most relevant risks to which an entity is exposed.

Requirements

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

Validation

Evidence: Evidence is subject to manual validation for this indicator./p>

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 active and that the relevant page can be accessed within two steps.

The provided evidence must cover the following elements:

1. Demonstrate there is a systematic risk identification process for transition risks in place and not simply a generic “climate-related risk” assessment
2. Demonstrate outcomes of the transition risk identification assessment. It is expected that the document list/state which risks, or lack thereof, were identified as a consequence of the risk assessment having been carried out.
3. The outcome-based information must pertain to the entity/portfolio in question and not only to the manager/group/business-unit level. Note: For fund-of-funds, entity-level applicability must be explicitly established.
4. The risk assessments must be applicable to the reporting year, or two years prior.

Examples of appropriate evidence include, but are not limited to:

• For Process: A document describing the entity’s approach or methodology towards transition risk assessments or other tangible proof of the entity's risk assessment activity. This process-based information can include information akin to materiality determination, scenario analysis, modeling or review of legislation.
• For Outcomes: An extract of the results of the assessment such as a risk register or matrix, checklists, scenario analysis or a section of a risk framework or risk management plan addressing transition risks. Such documents can help exhibit the outcomes of the risk.
• For Entity-level Outcomes: Entity-level documentation that highlights specific transition risks identified for the entity. If using group-level documentation, ensure the outcomes relevant to the entity are included in the evidence.

Other: State the other transition risk issue. It is not subject to automatic or manual validation but is used for reporting purposes only.

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

3 points, G

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

See the Scoring Document for additional information on scoring.

Terminology

Entity-level: Explicitly applicable to the reporting entity as identified in EC1. Note that references to the overarching fund and/or group of which the reporting entity is part do not imply entity-level applicability.

Material financial impact: In the context of this indicator, material financial impact is used in accordance with its use by the TCFD to express information about impacts on an entity and its financial manifestations insofar as such information is deemed to be material. As per the TCFD, “in determining whether information is material ... organizations should determine materiality for climate-related issues consistent with how they determine the materiality of other information included in their financial filings.” Furthermore, “asset managers and asset owners should consider materiality in the context of their respective mandates and investment performance for clients and beneficiaries.”

Systematic risk identification process: A process for identifying risks that is structured, repeatable, undergone at regular intervals, and designed in such a way that it can capture the potential risks that could prove financial material to the entity. It may be a standalone process, or it may be a step within another larger risk assessment process. Furthermore, it may leverage quantitative methods (e.g., use of modeling, data analysis, quantitative thresholds) and/or qualitative methods (e.g., expert consultation, working groups).

Transition risks: The risks associated with the transition to a lower-carbon global economy. These risks most commonly relate to policy and legal developments, technological changes, market responses, and reputational concerns. These risks are particularly relevant for actors with high GHG emissions within their value chain and are thus sensitive to policy and regulatory actions aimed at emissions reductions, energy efficiency, etc.

Policy and legal risk: Policy risk derives from policy action that either tries to constrain actions which contribute to climate change, or to promote adaptation to climate change. Legal risk arises from an increase in climate-related litigation, for instance due to failure of an organisation to properly communicate and account for its interactions with the climate.

Increasing price of GHG emissions: Examples include, but are not limited to: the implementation of a carbon tax, or cap and trade systems (e.g. EU ETS)

Enhancing emissions-reporting obligations: Examples include, but are not limited to: TCFD reporting, the Regulation on sustainability-related disclosures in the financial services sector (SFDR), EU Taxonomy, Streamlined Energy & Carbon Reporting (SECR).

Mandates on and regulation of existing products and services: The “existing products and services” as used here refers to the main function of the entity. Examples include, but are not limited to: Minimum Energy Efficiency Standard (MEES), Energy Performance of Buildings Directive (EPBD).

Exposure to litigation: Examples include, but are not limited to: claims of breach of entity board members' duty to act in the best interests of the entity; claims by shareholders of failure to properly disclose in annual reports the risk of climate change resulting from possible investments.

Technology risk: New technologies may displace old systems and disrupt existing parts of the economic system. Therefore, technological improvements and innovations can affect competitiveness, production and distribution costs, and potentially the demand for certain products and services, thus resulting in considerable uncertainty.

Substitution of existing products and services with lower emissions options: The “existing products and services” as used here refers to the main function of the entity. The risk of substitution for lower emissions options refers to a shift in the use of technologies that results in the reduction of the demand of such a function. For real estate, this refers to the provision of a building for its intended use.

This does not refer to the substitution of lower emissions technologies in the provision of the same core function (see Costs to transition to lower emissions technologies).Examples include, but are not limited to: the risk that specific technological advancements make specific buildings or property types less desirable; remote working technologies leading to the substitution of office space for more distributed, lower-emitting remote or shared office alternatives.

Unsuccessful investment in new technologies: Examples include, but are not limited to: investment into new technology unsuccessful due to difficulty of adoption or more efficient substitutes; unanticipated costs of operation, installation, or permitting; incompatibility with existing building systems or local electric grid operations; underperformance of new technologies compared to expected performance, etc.

Costs to transition to lower emissions technology: Examples include, but are not limited to: costs of the electrification of buildings (e.g., removing gas fired equipment), retrofits, installation of heat exchangers, substitution of facility services for alternatives with lower levels of embodied carbon, etc.

Market risk:  Involves changes in the supply and demand dynamics for specific commodities, products, or services driven by the global transition to a low-carbon economy. This includes factors such as shifts in consumer preferences, regulatory changes affecting production costs, or technological advancements altering market competitiveness. Conversely, opposing trends, such as anti-ESG legislation, can also impact market dynamics by influencing investment flows or altering the competitive landscape.

Changing customer behavior: Examples include, but are not limited to: accelerated demand for climate-resilient properties.

Uncertainty in market signals: Examples include, but are not limited to: energy price volatility; insufficient “pricing-in” of climate-related premiums; misguided assessment of industry and competition trends.

Increased cost of raw materials: Examples include, but are not limited to: increased energy prices, increase cost of facility services and retrofit materials.

Reputation risk:  Involves how an entity is perceived by customers, communities, or stakeholders in relation to its role in supporting or hindering the transition to a low-carbon economy. Negative perceptions, whether due to environmental practices, public commitments, or social responsibility, can impact brand value, customer loyalty, and stakeholder trust.

Shifts in consumer preferences: This option describes the shift of consumer preferences specifically around the provider of the good or service as a result of that provider’s treatment of climate-related issues. It does not describe an overall or provider-agnostic shift, which would be categorized as Changing customer behavior as described above

Stigmatization of sector: Loss in financial loans or increase in cost of capital due to hesitation about the sector’s general handling of climate-related issues

Increased stakeholder concern or negative stakeholder feedback: Such increased stakeholder concern or negative feedback might not be immediately financially material to an entity, but it signals that it could become so -- in the form of loss in financial loans or increase in cost of capital -- if action is not taken with regard to an entity’s identification, assessment, and management of climate-related issues. Examples include, but are not limited to: Stricter requirements to incorporate climate risk in investment decisions.

References

TCFD. (2017) “Final Report: Recommendations of the Task Force on Climate-related Financial Disclosures.”

TCFD. (2021) “2017 to 2021 TCFD Implementation Guidance (Annex) Summary of Changes”

TCFD. (2023) “TCFD Report Index: Implementation Guidance”

Intent

The intent of this indicator is to assess whether and how the entity uses a systematic approach for assessing the impact of transition risks on the business, operations, and/or financial planning of an entity.

Impact assessments are critical to understanding how specific risks manifest themselves on business, operations, and/or financial planning of an entity. The most sophisticated of these assessments address elements of probability and uncertainty, and translate them into financial outcomes that may then be used to inform strategic and tactical decision making.

Requirements

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

Validation

Evidence: Evidence is subject to manual validation for this indicator.

The provided evidence must cover the following elements:

1. Demonstrates there is a systematic risk impact assessment process for transition risks in place and not simply a generic “climate-related risk” assessment.
2. Demonstrate financial outcomes of the transition risk impact assessment. It is expected that the document list/state which risks, or lack thereof, were identified as a consequence of the risk assessment having been carried out.
3. The outcome-based information must pertain to the entity/portfolio in question and not only to the manager/group/business-unit level. Note: For fund-of-funds, entity-level applicability must be explicitly established.
4. The risk assessments must be applicable to the reporting year, or two years prior.

Examples of appropriate evidence include, but are not limited to:

• For Process: A document describing the entity’s process towards transition risk assessments or other tangible proof of the entity's risk assessment activity. This process-based information can include information akin materiality determination, scenario analysis, modeling or review of legislation.
• For Outcomes: An extract of a procedure undertaken such as a risk register or matrix, checklists, scenario analysis or a section of a risk framework or risk management plan addressing transition risks. Such documents can help exhibit the outcomes of the risk assessments, such as financial costs of the risks found in the reports
• For Entity-level Outcomes: Entity-level documentation that highlights specific transition risk impacts identified for the entity. If using group-level documentation, ensure the outcomes relevant to the entity are explicitly highlighted within the broader assessment.

Other: State the other material financial impact resulting from transition risk. It is not subject to automatic or manual validation but is used for reporting purposes only.

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

3 points, G

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

See the Scoring Document for additional information on scoring.

Terminology

Entity-level: Explicitly applicable to the reporting entity as identified in EC1. Note that references to the overarching fund and/or group of which the reporting entity is part do not imply entity-level applicability.

Material financial impact: In the context of this indicator, material financial impact is used in accordance with its use by the TCFD to express information about impacts on an entity and its financial manifestations insofar as such information is deemed to be material. As per the TCFD, “in determining whether information is material ... organizations should determine materiality for climate-related issues consistent with how they determine the materiality of other information included in their financial filings.” Furthermore, “asset managers and asset owners should consider materiality in the context of their respective mandates and investment performance for clients and beneficiaries.”

Systematic impact assessment process: A process for assessing the impacts on the business, strategy, financial performance, and/or financial planning of an entity in a way that is structured, repeatable, undergone at regular intervals, and designed in such a way that it can delineate between the magnitude of various impacts. The results of such a process assist in understanding the mechanisms and severity of the potential impacts on the entity, as well as serve as a critical input to the identification and implementation of measures meant to manage risks. It may be a standalone process, or it may be a step within another larger risk assessment process. Furthermore, it may leverage quantitative methods (e.g., use of modeling, data analysis, quantitative thresholds) and/or qualitative methods (e.g., expert consultation, working groups).

Transition risks: The risks associated with the transition to a lower-carbon global economy. These risks most commonly relate to policy and legal developments, technological changes, market responses, and reputational concerns. These risks are particularly relevant for actors with high GHG emissions within their value chain and are thus sensitive to policy and regulatory actions aimed at emissions reductions, energy efficiency, etc.

Policy and legal risk: Policy risk derives from policy action that either tries to constrain actions which contribute to climate change, or to promote adaptation to climate change. Legal risk arises from an increase in climate-related litigation, for instance due to failure of an organisation to properly communicate and account for its interactions with the climate.

Technology risk: New technologies may displace old systems and disrupt existing parts of the economic system. Therefore, technological improvements and innovations can affect competitiveness, production and distribution costs, and potentially the demand for certain products and services, thus resulting in considerable uncertainty.

Market risk: Involves changes in the supply and demand dynamics for specific commodities, products, or services driven by the global transition to a low-carbon economy. This includes factors such as shifts in consumer preferences, regulatory changes affecting production costs, or technological advancements altering market competitiveness. Conversely, opposing trends, such as anti-ESG legislation, can also impact market dynamics by influencing investment flows or altering the competitive landscape.

Reputation risk:  Involves how an entity is perceived by customers, communities, or stakeholders in relation to its role in supporting or hindering the transition to a low-carbon economy. Negative perceptions, whether due to environmental practices, public commitments, or social responsibility, can impact brand value, customer loyalty, and stakeholder trust.

References

TCFD. Final Report: Recommendations of the Task Force on Climate-related Financial Disclosures. (2017)

TCFD. (2021) “2017 to 2021 TCFD Implementation Guidance (Annex) Summary of Changes”

TCFD. (2023) “TCFD Report Index: Implementation Guidance”

Intent

The intent of this indicator is to assess whether and how the entity uses a systematic approach for identifying physical risks that could be financially material.

A comprehensive system for managing physical risks begins with a systematic process for identifying risks that could be financially material to an entity. Such a process ensures that subsequent risk assessments and analyses are focused on the most relevant risks to which an entity is exposed.

While many traditional physical risk assessments utilize re-analysis methods, it is becoming increasingly important to make use of forward-looking climate-driven models.

Requirements

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

Validation

Evidence: Evidence is subject to manual validation for this indicator.

The provided evidence must cover the following elements:

1. Demonstrate there is a systematic risk identification process for physical risks in place and not simply a generic “climate-related risk” assessment.
2. Demonstrate outcomes of the physical risk identification assessment. It is expected that the document list/state which risks, or lack thereof, were identified as a consequence of the risk assessment having been carried out.
3. The outcome-based information must pertain to the entity/portfolio in question and not only to the manager/group/business-unit level. Note: For fund-of-funds, entity-level applicability must be explicitly established.
4. The risk assessments must be applicable to the reporting year, or two years prior.

Examples of appropriate evidence include, but are not limited to:

• For Process: A document describing the entity’s process towards physical risk assessments or other tangible proof of the entity's risk assessment activity. This process-based information can include information akin to materiality determination, scenario analysis, modeling or review of legislation.
• For Outcomes: An extract of a procedure undertaken such as a risk register or matrix, checklists, scenario analysis or a section of a risk framework or risk management plan addressing physical risks. Such documents can help exhibit the outcomes of the risk assessments.
• For Entity-level outcomes: Entity-level documentation that highlights specific physical risks identified for the entity. If using group-level documentation, ensure the outcomes relevant to the entity are explicitly highlighted within the broader assessment.

Other: State the other physical risk issue. It is not subject to automatic or manual validation but is used for reporting purposes only

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

3 points, G

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

See the Scoring Document for additional information on scoring.

Terminology

Entity-level: Explicitly applicable to the reporting entity as identified in EC1. Note that references to the overarching fund and/or group of which the reporting entity is part do not imply entity-level applicability.

Material financial impact: In the context of this indicator, material financial impact is used in accordance with its use by the TCFD to express information about impacts on an entity and its financial manifestations insofar as such information is deemed to be material. As per the TCFD, “in determining whether information is material ... organizations should determine materiality for climate-related issues consistent with how they determine the materiality of other information included in their financial filings.” Furthermore, “asset managers and asset owners should consider materiality in the context of their respective mandates and investment performance for clients and beneficiaries.”

Systematic risk identification process: A process for identifying risks that is structured, repeatable, undergone at regular intervals, and designed in such a way that it can capture the potential risks that could prove financial material to the entity. It may be a standalone process, or it may be a step within another larger risk assessment process. Furthermore, it may leverage quantitative methods (e.g., use of modeling, data analysis, quantitative thresholds) and/or qualitative methods (e.g., expert consultation, working groups).

Acute hazards: Acute hazards are physical events, such as extreme weather events, that could damage a real asset. They include cyclones, hurricanes, wildfires, and floods. Non-climate-related acute hazards include tsunamis, earthquakes, and volcanic activity.

Chronic stressors: Chronic stressors are longer-term physical shifts, such as sea level rise or changes in precipitation patterns, that can affect the operations and costs associated therein of an entity and its assets. While such stressors may not have as noticeable impacts as acute hazards within any given year, such longer-term shifts in climate patterns (e.g., sustained higher temperatures) can impact the cost of operations, availability of resources, accessibility of assets, availability of upstream or downstream suppliers, etc.

References

TCFD. Final Report: Recommendations of the Task Force on Climate-related Financial Disclosures. (2017)

TCFD. (2021) “2017 to 2021 TCFD Implementation Guidance (Annex) Summary of Changes”

TCFD. (2023) “TCFD Report Index: Implementation Guidance”

Intent

The intent of this indicator is to assess whether and how the entity uses a systematic approach for assessing the impact of physical risks on the business, operations, and/or financial planning of an entity.

Impact assessments are critical to understanding how specific risks manifest themselves on business, operations, and/or financial planning of an entity. The most sophisticated of these assessments address elements of probability and uncertainty, and translate them into financial outcomes that may then be used to inform strategic and tactical decision making.

Requirements

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

Validation

Evidence: Evidence is subject to manual validation for this indicator.

The provided evidence must cover the following elements:

1. Demonstrates there is a systematic risk impact assessment process for physical risks in place and not simply a generic “climate-related risk” assessment.
2. Demonstrate financial outcomes of the physical risk impact assessment. It is expected that the document list/state which risks, or lack thereof, were identified as a consequence of the risk assessment having been carried out.
3. The outcome-based information must pertain to the entity/portfolio in question and not only to the manager/group/business-unit level. Note: For fund-of-funds, entity-level applicability must be explicitly established.
4. The risk assessments must be applicable to the reporting year, or two years prior.

Examples of appropriate evidence include, but are not limited to:

• For Process: A document describing the entity’s proceess towards physical risk assessments or other tangible proof of the entity's risk assessment activity. This process-based information can include information akin to materiality determination, scenario analysis, modeling or review of legislation.
• For Outcomes: Acceptable evidence may include an extract of a procedure undertaken such as register or matrix, checklists, scenario analysis or a section of a risk framework or risk management plan addressing physical risks. Such documents can help exhibit the outcomes of the risk assessments, such as financial costs of the risks found in the reports.
• For Entity-level Outcomes: Entity-level documentation that highlights specific physical risk impacts identified for the entity. If using group-level documentation, ensure the outcomes relevant to the entity are explicitly highlighted within the broader assessment.

Other: State the other material financial impact resulting from physical risk. It is not subject to automatic or manual validation but is used for reporting purposes only.

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

3 points, G

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

See the Scoring Document for additional information on scoring.

Terminology

Entity-level: Explicitly applicable to the reporting entity as identified in EC1. Note that references to the overarching fund and/or group of which the reporting entity is part do not imply entity-level applicability. 

Material financial impact: In the context of this indicator, material financial impact is used in accordance with its use by the TCFD to express information about impacts on an entity and its financial manifestations insofar as such information is deemed to be material. As per the TCFD, “in determining whether information is material ... organizations should determine materiality for climate-related issues consistent with how they determine the materiality of other information included in their financial filings.” Furthermore, “asset managers and asset owners should consider materiality in the context of their respective mandates and investment performance for clients and beneficiaries.”

Systematic impact assessment process: A process for assessing the impacts on the business, strategy, financial performance, and/or financial planning of an entity in a way that is structured, repeatable, undergone at regular intervals, and designed in such a way that it can delineate between the magnitude of various impacts. The results of such a process assist in understanding the mechanisms and severity of the potential impacts on the entity, as well as serve as a critical input to the identification and implementation of measures meant to manage risks. It may be a standalone process, or it may be a step within another larger risk assessment process. Furthermore, it may leverage quantitative methods (e.g., use of modeling, data analysis, quantitative thresholds) and/or qualitative methods (e.g., expert consultation, working groups).

References

TCFD. Final Report: Recommendations of the Task Force on Climate-related Financial Disclosures. (2017)

TCFD. (2021) “2017 to 2021 TCFD Implementation Guidance (Annex) Summary of Changes”

TCFD. (2023) “TCFD Report Index: Implementation Guidance”

Intent

The focus is on identifying any 'green' loan programs. Participants should describe eligibility requirements, performance metrics, and attribute/threshold characteristics.

Requirements

Select Yes or No. If Yes, please select applicable checkboxes and complete the open text box.

Note: Each participant must provide additional explanation under each selected checkbox.

For certification labels and levels participants must explain which certification schemes and levels are used.

For threshold/improvement minimum participants must explain what quantitative targets/metrics are used.

Open text box: Description provided should fully support each checkbox selected, along with the following elements:

1. Provide an explanation who can apply for these loans and any eligibility criteria;
2. Describe any additional checks performed during due diligence process.

Other: Answers provided under 'Other' must be outside the options listed in the indicator to be valid. State the 'green' attribute/metric.

Validation

Under each selected checkbox, an additional explanation must be provided, which is subject to manual validation.

Other: State the other positive environmental criteria that the borrower must achieve.

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

4 points, E

This indicator awards points based on each individual checkbox which is then aggregated to determine total amount of points for the indicator.

It is not necessary to select all options to obtain maximum points for this indicator.

Other: The 'Other' answer is manually validated and points are contingent on the validation decision.

See the Scoring Document for additional information on scoring.

Terminology

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

Energy Rating: A scheme that measures the energy efficiency performance of buildings.

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.

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.

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

Intent

The focus is on evaluation of social impacts of real estate loans. Participants should select which positive impacts are targeted during loan origination, and if any exclusion criteria exist.

Requirements

Select Yes or No. If Yes, please select all applicable checkboxes.

Note: If 'Negative exclusion' checkbox is selected, participant must explain which criteria are used in the process.

Other: Answers provided under 'Other' must be outside the options listed in the indicator to be valid. This indicator contains two options to provide an answer:

1. After selecting Yes, state applicable impact analysis process.
2. Under 'Positive impact(s)' checkbox participants can state impact/metric that is tracked/reviewed.

Validation

If 'Negative exclusion' checkbox is selected, participant must explain which criteria are used in the process, which is subject to manual validation.

The answers provided under 'Other' are subject to manual validation.

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

4 points, S

This indicator awards points based on each individual checkbox which is then aggregated to determine total amount of points for the indicator.

It is not necessary to select all options to obtain maximum points for this indicator.

Other: The 'Other' answer is manually validated and points are contingent on the validation decision.

See the Scoring Document for additional information on scoring.

Terminology

Affordable housing: Assets or projects that are specifically marked by national or local government and are available to those with medium/low income.

Underserved communities: Communities that are disadvantaged based on characteristics including race, ethnicity, geography and health accessibility.

Refurbishment: Renovation or redecoration works undertaken by a landlord or tenant.

'Property-backed' social businesses Financing of an asset or asset pool that is intended for businesses with social impacts, like health-centres, collaborative office spaces, etc.

Intent

The focus is on lender activity to provide loan incentives to collateral delivering positive environmental impact(s). Please describe loan attributes and provide documented evidence of the available product(s).

Requirements

Select Yes or No. If Yes, please select all applicable checkboxes.

Other: Answers provided under 'Other' must be outside the options listed in the indicator to be valid. State loan-related incentive.

Validation

Supporting evidence is mandatory via either hyperlink OR document upload. Evidence provided must clearly demonstrate each of the selected criteria, or will be deemed invalid.

Hyperlink: If providing a hyperlink, please ensure the relevant page is accessible within two steps.

Document upload: Participants may upload several documents to support each answer. When providing a document upload, it is mandatory to indicate where relevant information can be found within the document.

Evidence may include but are not limited to:

• Prospectus that outlines specific incentives;
• Internal document that notes applicable criteria to receive selected incentives.

Other: State the other incentive that the lender provides for loans with positive impact(s).

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

3 points, G

Evidence provided via hyperlink and/or the uploaded document is validated based on the criteria outlined above, and used for scoring purposes.

This indicator awards points based on each individual checkbox which is then aggregated to determine total amount of points for the indicator.

It is not necessary to select all options to obtain maximum points for this indicator.

Other: The 'Other' answer is manually validated and points are contingent on the validation decision.

See the Scoring Document for additional information on scoring.

Terminology

Debt coverage ratio: Measure of the cash flow available to pay current debt obligations.

Interest rate: Annual percentage of the outstanding loan the borrower pay to the lender as the cost of borrowing.

Loan proceeds: Net amount distributed by a lender to the borrower under the terms of the loan agreement.

LTV ratio: Expresses the ratio of a loan value to the value of the property.

Intent

Identify mechanism(s) within loan agreements that are tied to enforcing borrower-controlled sustainability aspects/KPIs. Participants should select the applicable scope and provide examples and/or additional context.

Requirements

Select Yes or No. If Yes, please select applicable checkboxes and complete the open text box.

Note: If 'property type' and/or 'specific region' checkbox(es) are selected - participants must elaborate in which cases covenants are used.

Open text box: Description provided should fully support each checkbox selected, along with the following elements:

1. Specify any third-party standards that are referenced in covenants;
2. Elaborate what sustainability-related metrics are utilized in loan covenants.

Other: Answers provided under 'Other' must be outside the options listed in the indicator to be valid. This indicator contains two options to provide an answer:

1. After selecting Yes, state loan scope where sustainability-related covenants are used.
2. Under 'specific financing' participants must note for which loan type covenants are used.

Validation

If 'property type' and/or 'specific region' checkbox(es) are selected, an additional explanation must be provided, which is subject to manual validation.

The answers provided under 'Other' are subject to manual validation.

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

4 points, G

This indicator awards points based on each individual checkbox which is then aggregated to determine total amount of points for the indicator.

It is not necessary to select all options to obtain maximum points for this indicator.

See the Scoring Document for additional information on scoring.

Terminology

Loan covenant: Condition included in loan terms that requiring the borrower to fulfil certain conditions or taking certain actions.

New construction: Includes all borrower activities to obtain or change building or land use permissions and financing.

Retrofit/renovation: Includes all borrower activities to modify an existing building’s systems and/ or structure in order to improve building performance or tenant amenities.

Tenant fit-outs: Alterations undertaken by either the tenant or the borrower to design, refurbish or decorate a leased space, making it fit for tenant purpose. Tenant improvement allowances are generally provided by the borrower, to a tenant, at time of lease origination.

Intent

Describe specific lender programs for funding property improvements (e.g. PACE lending, etc.) that result in improved building efficiencies and/or positive environmental impacts. Participants should select targeted environmental impacts and describe available loan program(s).

Requirements

Select Yes or No. If Yes, please select all applicable checkboxes and a radio button, then complete the open text box.

Radio buttons: Only one answer is possible. Please select the most applicable.

Open text box: Description provided should fully support each checkbox selected, along with the following elements:

1. Describe the main eligibility requirements to receive this financing;
2. Identify how impacts are tracked/evaluated after financing.

Other: Answers provided under 'Other' must be outside the options listed in the indicator to be valid. State sustainability-related positive impact.

Validation

Other: State for which positive impact the financing is meant.

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

3 points, E

Because evidence is optional, evidence provided via hyperlink and/or document upload will not be used for scoring.

Each radio button is scored. The quality of evidence and/or context provided directly impacts scoring results.

This indicator awards points based on each individual checkbox which is then aggregated to determine total amount of points for the indicator.

It is not necessary to select all options to obtain maximum points for this indicator.

See the Scoring Document for additional information on scoring.

Terminology

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).

Property improvements resulting in improved environmental impacts: Improvements that contribute to lowering environmental impacts, including but not limited to, increased energy efficiency, lower GHG emissions, and/or water consumption reduction.

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.

Intent

The focus is on the lender process to better understand the borrower/sponsor risk profile by using an ESG Due Diligence Questionnaire. In case a proprietary questionnaire is used, Participants should indicate which sustainability metrics are used to assess the borrower/sponsor.

Requirements

Select Yes or No. If Yes, please select all applicable checkboxes.

Other: Answers provided under 'Other' must be outside the options listed in the indicator to be valid.

If a Proprietary questionnaire is used, the indicator contains three additional answer options:

1. Under 'Borrower-specific risks' participants should indicate the risk group reviewed.
2. Under 'Sustainability-related actions' participants should specify metric(s) related to the borrower/sponsor's ESG actions, objectives and/or targets.
3. Under 'ESG track record' participants should indicate which (asset-level) ESG metrics are being tracked.

Validation

This indicator is not subject to automatic or manual validation.

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

5 points, G

This indicator awards points based on whether an ESG Due Diligence Questionnaire is used to assess borrowers/sponsors.

See the Scoring Document for additional information on scoring.

Terminology

Community engagement: Community engagement refers to the communication, interaction, and formation of relationships between the entity and those groups.

Environmental fines and/or penalties: Sanctions resulting from an illegal act, which directly harms the environment.

ESG Integrated Disclosure Project (ESG IDP): An industry initiative bringing together leading lenders in the private credit and syndicated loan markets to improve transparency and accountability. The goal is to promote greater harmonisation and consistency of disclosure of key ESG indicators by borrowers in private credit and syndicated loan transactions.

Misconduct: Unethical behavior, and more specifically, poor stewardship of environmental, social or governance issues, which may or may not result in legal action.

MISMO Commercial Green Borrower Questionnaire: This industry resource standardizes questions for commercial lenders to ask borrowers when applying for a commercial mortgage loan. These standardized questions are designed to assist lenders in gathering borrower information when originating, underwriting or servicing commercial loans in order to increase borrower participation in ESG.

Multifamily Impact Framework: A market-based, common framework of industry impact principles and reporting guidelines for multifamily properties in the United States.

Sustainability commitment: Long and/or short term aims connected to specific metrics/impacts made by the lender.

Sustainability objectives: Strategic priorities and key topics to improve the management of ESG issues.

Sponsor: The entity that provides equity to a Borrower in a real estate finance transaction.

Sustainability performance: Indicators of environmental, social, or governance (ESG) management, implementation, or performance.

Sustainability track record: Data that reflects the sustainability performance of a borrower or sponsor.

References

ESG Integrated Disclosure Project (ESG IDP)

MISMO Commercial Green Borrower Questionnaire

Multifamily Impact Framework

Intent

Identify sustainability-related information included within the lender’s standard due diligence process. Please indicate which sustainability-related third-party reports are evaluated during due diligence.

Requirements

Select Yes or No. If Yes, please select all applicable checkboxes.

Other: Answers provided under 'Other' must be outside the options listed in the indicator to be valid. State the information from a third-party report used in the due diligence process.

Validation

Other: State which other reports are included in standard due diligence.

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

3 points, E

This indicator awards points based on each individual checkbox which is then aggregated to determine total amount of points for the indicator.

It is not necessary to select all options to obtain maximum points for this indicator.

See the Scoring Document for additional information on scoring.

Terminology

Sustainability asset plan: A borrower’s long-term plan detailing how sustainability measures will be embedded into the property’s lifecycle.

Energy audit: A process for assessing existing energy consumption patterns and evaluating measures needed to increase energy efficiency.

Environmental assessment (Phase I, ESA): A report prepared by a qualified environmental engineer that identifies areas of environmental concern.

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.

Monitoring Surveyor report: Valuation of construction activity to facilitate the drawdown of funds which is issued within a written interim report.

Appraisal or valuation report: Report provided by a third-party valuation expert for the subject property (or properties).

Property condition assessment (PCA): A report prepared by an engineering firm identifying property items requiring immediate repair, and additional items requiring attention over the loan term.

Resilience assessment: Assessing an asset’s ability to continue to function, or return to function, after disruption from catastrophic events or long-term change.

Waste audit: Report outlining issues associated with waste generation, reuse, recycling, composting, recovery, incineration, landfill and storage.

Water audit: Report outlining water consumption, management and conservation issues.

Intent

Identify asset-specific sustainability risks and opportunities incorporated during due diligence. Participants should mark which risk factors are reviewed, then elaborate as to how this information is integrated into loan decision-making.

Requirements

Select Yes or No. If Yes, please select applicable checkboxes and complete the open text box.

Open text box: Description provided should fully support each checkbox selected, along with the following elements:

1. Describe sources used to review/analyze risks and/or opportunities during loan underwriting.
2. Elaborate on the granular KPIs/metrics checked during this process.

Other: Answers provided under 'Other' must be outside the options listed in the indicator to be valid. Please describe the sustainability-related risk and/or opportunity.

Validation

Other: State which other actions and/or risk factors are considered during regular review.

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

4 points, E

This indicator awards points based on each individual checkbox which is then aggregated to determine total amount of points for the indicator.

It is not necessary to select all options to obtain maximum points for this indicator.

See the Scoring Document for additional information on scoring.

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.

Climate change adaptation: Preparation for long-term change in climatic conditions or climate related events.

Energy Rating: A scheme that measures the energy efficiency performance of buildings.

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 attributes: Health and well-being can refer to a broad range of activities that address the determinants of health or the conditions that lead to health outcomes. Health, safety and well-being attributes are associated with employees, customers, surrounding communities or all of the above.

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

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.

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.

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.

Intent

Focus is on the lender's actions to systematically integrate sustainability-related attributes into the due diligence process. Participants should indicate main components/metrics utilized.

Requirements

Select Yes or No. If Yes, please select applicable checkboxes and complete the open text box.

Note: Participants must report the minimum value threshold when the checkbox is selected.

Open text box: Description provided should fully support each checkbox selected, along with the following elements:

1. Describe key sustainability elements that are included in the due diligence scorecard/overview.
2. Elaborate on importance, prioritization, assigned weights, etc.

Other: Answers provided under 'Other' must be outside the options listed in the indicator to be valid. This indicator contains two options to provide an answer:

1. Under 'Borrower or sponsor scorecard/overview' participants should note borrower-specific trigger metrics.
2. Under 'Loan-specific scorecard/overview' participants should note loan-specific trigger metrics.

Validation

The answers provided under 'Other' are subject to manual validation.

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

4 points, G

This indicator awards points based on each individual checkbox which is then aggregated to determine total amount of points for the indicator.

It is not necessary to select all options to obtain maximum points for this indicator.

See the Scoring Document for additional information on scoring.

Terminology

Borrower scorecard: Document that outlines key sustainability attributes and risks of a borrower/sponsor.

Loan scorecard: Document that outlines key sustainability attributes and risks related to the specific loan.

Sustainability track record: Data that reflects the sustainability performance of a borrower or sponsor.

Climate change risk: Risks associated with long-term change in climatic conditions or climate related events.

Sustainability asset plan: A borrower’s long-term plan detailing how sustainability measures will be embedded into the property’s lifecycle.

Intent

The focus is on lender's actions to systematically monitor sustainability KPIs related to the borrower/sponsor. Participants should select KPIs tracked for the whole loan portfolio.

Requirements

Select Yes or No. If Yes, please select all applicable checkboxes.

Other: Answers provided under 'Other' must be outside the options listed in the indicator to be valid. This indicator contains two answer options:

1. After selecting Yes, identify the KPI tracked relevant to the borrower/sponsor.
2. Under 'ESG metrics and commitments,' identify the metric related to sustainability commitments/objectives.

Validation

The answers provided under 'Other Metrics' and 'Other KPIs' are subject to manual validation.

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

3 points, G

This indicator awards points based on each individual checkbox which is then aggregated to determine total amount of points for the indicator.

It is not necessary to select all options to obtain maximum points for this indicator.

See the Scoring Document for additional information on scoring.

Terminology

Climate change adaptation: Preparation for long-term change in climatic conditions or climate related events.

Sustainability objectives: Strategic priorities and key topics to improve the management of ESG issues.

Environmental fines and/or penalties: Sanctions resulting from an illegal act, which directly harms the environment.

Sustainability commitment: Long and/or short term aims connected to specific metrics/impacts made by the lender.

Sustainability target: Long and/or short term targets that are explicitly expressed in a quantifiable matter.

Intent

Identify specific KPIs / metrics used to monitor asset-specific sustainability attributes present in the loan portfolio. Participants should select each KPI tracked, then describe the frequency of data updates [monthly, quarterly, annual, etc.].

Requirements

Select Yes or No. If Yes, please select all applicable checkboxes.

Note: Under checkboxes, participants must select data update frequency.

Other: Answers provided under 'Other' must be outside the options listed in the indicator to be valid. This indicator contains three options to provide an answer:

1. After selecting Yes, state asset-specific group of metrics tracked by the loan portfolio.
2. Under 'Asset Ratings,' participants can note a rating tracked by the loan portfolio.
3. Under 'Performance Indicators,' participants can note an asset performance indicator tracked by the loan portfolio.

Validation

The answers provided under 'Other' are subject to manual validation.

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

4 points, E

This indicator awards points based on each individual checkbox which is then aggregated to determine total amount of points for the indicator.

It is not necessary to select all options to obtain maximum points for this indicator.

See the Scoring Document for additional information on scoring.

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.

Energy Rating: A scheme that measures the energy efficiency performance of buildings.

Energy consumption: the use of energy by the asset.

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).

Water consumption: the use of water resources by the asset.

Intent

Identify lender processes used to evaluate borrower actions during or after property improvements. Participants should select applicable actions, then elaborate on the engagement process used to ensure borrower adherence.

Requirements

Select Yes or No. If Yes, please select applicable checkboxes and complete the open text box.

Open text box: Description provided should fully support each checkbox selected, along with the following elements:

1. Describe the engagement process with the borrower during the implementation of property improvements.
2. Elaborate on follow-up actions taken after property improvements are completed.

Other: Answers provided under 'Other' must be outside the options listed in the indicator to be valid. State the review process or similar adherence actions.

Validation

Other: State which other actions and/or risk factors are considered during regular review.

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

2 points, E

This indicator awards points based on each individual checkbox which is then aggregated to determine total amount of points for the indicator.

It is not necessary to select all options to obtain maximum points for this indicator.

See the Scoring Document for additional information on scoring.

Terminology

Design document inspection: Procedures that include evaluation and review of design related documents for construction projects and/or tenant fit outs.

Document review: Systematic analysis of financial data, third party reports, and related documentation provided by borrower as part of a loan transaction.

Energy Rating: A scheme that measures the energy efficiency performance of buildings.

Onsite property visit(s): A process when the lender or a designated third-party checks the property for actions or other changes in accordance with the loan terms.

Intent

Describe the approach to data collection and post-close sustainability metric monitoring, including the level of systematic record tracking. Participants should select the appropriate guidance level and specific monitoring metric components.

Requirements

Other: Answers provided under 'Other' must be outside the options listed in the indicator to be valid. After selecting Yes, state the metrics that borrowers are required to systematically report.

Validation

Supporting evidence is mandatory via either hyperlink OR document upload. Evidence provided must clearly demonstrate each of the selected criteria, or will be deemed invalid.

Hyperlink: If providing a hyperlink, please ensure the relevant page is accessible within two steps.

Document upload: Participants may upload several documents to support each answer. When providing a document upload, it is mandatory to indicate where relevant information can be found within the document.

Evidence may include but are not limited to:

• policy document applicable to the entity / business unit that outlines the data gathering process,
• guidance document that describes how sustainability metrics are integrated into the loan monitoring process,
• a list of specific data points tracked to include update frequency.

The answers provided under 'Other' are subject to manual validation.

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

2 points, G

Evidence provided via hyperlink and/or the uploaded document is validated based on the criteria outlined above, and used for scoring purposes.

Each radio button is scored. The quality of evidence and/or context provided directly impacts scoring results.

This indicator awards points based on each individual checkbox which is then aggregated to determine total amount of points for the indicator.

It is not necessary to select all options to obtain maximum points for this indicator.

See the Scoring Document for additional information on scoring.

Terminology

Energy consumption: the use of energy by the asset.

Energy Rating: A scheme that measures the energy efficiency performance of buildings.

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).

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.

Water consumption: the use of water resources by the asset.

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

Intent

This indicator examines the types and content of training received by employees responsible for this entity. A more skilled and aware workforce enhances the entity's human capital and may help to improve employee satisfaction. Employee training and development contribute to improved business performance.

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. If the number of employees responsible for the entity changed during the reporting year, calculate the percentage based on the average number.

Both percentages should be calculated based on the following formulas:

Number of employees receiving professional training / Total number of employees x 100%

Number of employees receiving ESG-specific training / Total number of employees x 100%

Training topics: Select the applicable training topics included in the training series during the reporting year.

Validation

This indicator is not subject to automatic or manual validation.

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

1 point, S

Percentage number: The coverage percentage reported is used as a multiplier to determine the assigned score.

See the Scoring Document for additional information on scoring.

Terminology

Employee(s): The entity’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, contamination, GHG emissions, energy, water, waste, natural hazards, supply chain environmental standards, and product and service-related impacts, as well as environmental compliance and expenditures.

ESG-specific training: Training related to environmental, social and governance (ESG) issues.

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

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.

Social issues: Concerns the impacts the entity has on the social systems within which it operates. This includes, but is not limited to community social and economic impacts, safety, health & well-being.

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

Intent

This indicator examines whether and to what extent the entity engages with employees regarding their satisfaction. Employee satisfaction surveys help entities 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 that can help analyze and compare outcomes, despite the many variations between departments and teams.

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. If the number of employees responsible for the entity changed during the reporting year, calculate the percentage based on the average number.

Percentage of employees covered = Number of employees receiving the satisfaction survey / Total number of employees x 100%

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).

Survey response rate = Number of individual survey responses / Number of employees receiving the satisfaction survey x 100%

Validation

The evidence must confirm that the survey was conducted and specify whether it was undertaken internally, by an independent third party, or both. If both options are selected, the evidence must demonstrate that at least one of the surveys was conducted by an independent third party.

The data collected through the survey must correspond to one of the last three reporting years (2024, 2023 or 2022), and the survey must have been distributed no later than the last day of the reporting year to ensure alignment with the reporting period. The aggregation and analysis of the survey data must be completed before the GRESB submission deadline.

Appropriate evidence includes:

• A sample survey accompanied by aggregated results.
• Survey results reports containing aggregated feedback.

Blank survey templates unaccompanied by aggregated results are not acceptable as evidence. If applicable, the evidence must also include the selected quantitative metrics used in the analysis.

If the survey results report is dated after the reporting year, the entity must provide both the survey results report and the sample survey with dates to confirm that the survey was conducted within the last three reporting years.

Other: State the other quantitative metric included in the employee satisfaction survey. The other answer must be a measure or parameter in employee satisfaction that can be represented numerically. This can include, but is not limited to, the overall satisfaction with the working conditions. A metric about the survey itself (i.e. user friendliness) is not appropriate. It is possible to report multiple other answers. If multiple other answers are acceptable, only one will be counted towards scoring.

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

2 points, S

Scoring is based on the number of selected options. It is not necessary to select all options to achieve the maximum score.

Percentage number: The coverage percentage reported is used as a multiplier to determine the assigned score.

Evidence: The evidence is manually validated and points are contingent on the validation decision.

Other: The 'Other' answer is manually validated and points are contingent on the validation decision.

See the Scoring Document for additional information on scoring.

Terminology

Employee(s): The entity’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 entity levels. The survey should directly address employee concerns and include the opportunity to provide recommendations for improvement.

Independent third party: An external organization that is responsible for both the creation of the survey content (input) and the administration of the survey process and results (output). This includes ensuring anonymity, conducting independent analysis, and managing the overall survey process. The use of survey development tools, such as SurveyMonkey or SurveyGizmo, does not qualify as an independent third party unless the tool’s service explicitly includes independent creation and administration. This must be clearly specified in the evidence provided.

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?” The Net Promoter Score ® (NPS) ratings of 9 or 10 indicate promoters; 7 and 8, passives; and 0 through 6, detractors. The NPS is the percentage of promoters minus the percentage detractors. NPS can be represented in surveys as a question asking a survey respondent about their likelihood to recommend the company.

Overall employee satisfaction score: An overarching metric in a satisfaction survey, with no prescribed scale, that measures how happy an employee is with the entity. The industry best practice is a 1-5 scale - very poor, poor, average, good, and excellent, respectively. Overall engagement score is a separate metric from overall satisfaction score and can be reported as an other answer. While satisfied employees are happy with their current situation, engaged employees proactively help to improve the company and their working environment.

Quantitative metric: Any measure or parameter in employee or tenant satisfaction that can be represented numerically.

Survey response rate: The proportion of substantially complete survey responses received as a percentage of the total number of surveys administered.

Understanding tenant needs: Understanding tenant expectations and priorities as they related to the property and/or the overall entity. Examples include satisfaction with amenities, programming, or initiatives.

References

GRI Sustainability Reporting Standards, 2016: 102-43, Approach to stakeholder engagement

Bain & Company, Introducing: The Net Promoter System®

Intent

This indicator evaluates the presence and extent of an entity’s 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 entities take systematic action to create value and manage risks.

Requirements

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

Validation

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

1 point, S

Scoring is based on the number of selected options.

See the Scoring Document for additional information on scoring.

Terminology

Employee(s): The entity’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.

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 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 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.

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.

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.

Intent

This indicator evaluates the scope and quality of the entity’s employee health and well-being program.

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.

Validation

Other:

1. Other: State the type of needs assessment.
2. Other: State the health and wellbeing topic.
3. Other: State the action to promote health.
4. Other: State the outcome tracking method.

It is possible to report multiple other answers.

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

1 point, S

Scoring is based on the number of selected options. It is not necessary to select all options to achieve the maximum score.

Percentage number: The coverage percentage reported is used as a multiplier to determine the assigned score.

Other: The 'Other' answer is manually validated and points are contingent on the validation decision.

See the Scoring Document for additional information on scoring.

Terminology

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 users and efforts to protect the ear health of construction and industrial workers as well as 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.

Childcare facilities contributions: Any method by which an employer facilitates employees' childcare, e.g., through operation of an on-site child care facility, partnership with a third-party care provider, subsidies to defray employees' child care costs, etc.

Flexible working hours: Allowing employees an alternative to the traditional work schedule by varying their arrival and/or departure times.

Humidity: A measure of the concentration of water vapor present in the air.

Illumination: Light falling on a surface per unit area, measured in lux.

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.

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.

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.).

Physical activity: Promotion of health-focused physical activity events and access to spaces designated for recreation, including but not limited to green spaces, picnic areas, sport facilities, or children’s playgrounds.

Physical and/or mental healthcare access: Access to health services including preventative services such as disease screenings and vaccinations, as well as mental health 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.

Persons responsible: Measures of employee/tenant engagement and satisfaction with the health & wellbeing program, as indicated through follow-up survey results, reviews, verbal feedback, or other methods.

Program performance: Monitoring the success of the implemented Health & Well-being measures.

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.

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.

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, community events etc.

Thermal comfort: 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.

Water quality: Reduction of water contamination risk and provision of clean fresh sources of water.

Intent

This indicator is intended to describe metrics collected by the entity to understand health, safety and productivity of employees. Monitoring and reporting on occupational health and safety is an indicator of good management and allows for a continuous understanding of entity health and safety issues. Maintaining records of the number of incidents among employees over time helps to analyze incidents and to identify areas where improvements are necessary.

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.

Validation

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. It is possible to report multiple other answers. If multiple other answers are acceptable, only one will be counted towards scoring.

See Appendix 3 - Validation for additional information about GRESB Validation.

Scoring

1 point, S

Scoring is based on the number of selected options.

Percentage of employees: The percentage reported under ‘Work station and/or workplace checks’ is used as a multiplier to determine the assigned score. The percentage values of all other options will not impact the score.

Other: The 'Other' answer is manually validated and points are contingent on the validation decision.

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

See the Scoring Document for additional information on scoring.

Terminology

Absentee rate: A measure of absenteeism that is defined as the total number of absentee days, expressed as a percentage of total days scheduled to be worked by the workforce during the reporting year.

Employee(s): The entity’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 days scheduled to be worked by the workforce during the reporting year.

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.

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