Founded in 2009, GRESB is the European reference in ESG for financial markets. Their mission is to provide financial markets with actionable information, ESG data and benchmarks. The organisation is particularly recognised for its focus on the impact of real estate funds. Indeed, we must not forget that the building sector is very energy-intensive and is responsible for 40% of our EU energy consumption and 36% of greenhouse gas emissions.
Why harmonize reporting?
Today, the regulatory obligations of each country, the different labels and certifications make it difficult to really compare the actions carried out by management companies. The methodology varies greatly from one assessment to another, making it difficult to find your way around whether for end investors, owners, etc. The value of transparency is highly valued by the various stakeholders. This is why reports on extra-financial performance are so important and in demand. Management companies must be accountable and prove their real actions. However, these reports lose their readability and understanding when no form of harmony exists. How can companies be compared with each other when the indicators are not the same? Harmonization is therefore necessary to give more credibility to these reports.
What is the place of GRESB in this harmonization?
By offering a global assessment for real estate funds, GRESB provides a real solution to the harmonization of reporting. Today, GRESB measures the extra-financial performance of nearly 170,000 real estate assets worldwide in 75 different markets. The organization allows organizations to be compared using the GRESB Green Star, which is a rating. Management companies can thus obtain one to five stars for their fund in order to demonstrate their commitment. The higher the number of stars, the more impactful the actions carried out. It is therefore easy to compare companies according to their commitment. The assessment for this year begins this week and remains open until July.
In addition, GRESB also provides a market benchmark to better understand market trends. Each year, the organization publishes its study and communicates its results according to the different regions, asset typology, life cycle, etc. It therefore helps to shed light on the market thanks to a substantial and representative database.
The impact of GRESB action on the environmental impact of real estate
Through its actions, GRESB helps influence the market by giving its players the keys to understanding the actions carried out on the market. It allows both to know how to position oneself in relation to one’s competitors and to promote the strategy implemented internally.
This movement encourages actions in favor of a more sustainable transition in real estate by highlighting what is being implemented on the market. The good practices communicated can inspire and guide. Indeed, today the trend is towards decarbonization and reducing its impact. However, it is difficult to really know where to start for many players. By highlighting these actions, GRESB helps to really impact the market by providing the keys to act but also to report on the actions implemented.
We can therefore easily say that GRESB plays a major role in the transition to more sustainable real estate.
