Understanding GRESB: The ESG benchmark driving sustainable property forward

The UK property sector is embracing the urgent call for sustainability. With decarbonisation targets and investor expectations accelerating, Environmental, Social, and Governance (ESG) performance has rightfully taken centre stage.

What is GRESB?

The Global Real Estate Sustainability Benchmark (GRESB) is a framework assessment which scrutinises how companies manage sustainability challenges within their property portfolio. This will include the management and performance of the portfolio, as well as development activities.

The management component of the framework assesses the strategy, leadership, processes, risk management and stakeholder engagement associated with the portfolio.

The performance and development element of the framework looks at the ESG data for the properties, including elements such as energy consumption and greenhouse gas emissions data (GHG). Tenant and community engagement is also considered within the ESG data analysed.

The result is a GRESB score that showcases the business’s ESG maturity, complemented by a clear rating from one to five stars, facilitating transparent benchmarking across the industry.

How does getting your score work?

From April 1 every year, businesses have up to three months to respond to a survey which includes asset level information in line with GRESB. From here they can assess and verify your data, assign you a score, and provide an initial benchmarking report in October.

For every component of the assessment there is a related score, which will be factored in your business’s overall GRESB score. This means the management, performance, and development components are individually assessed.

How does the GRESB rating system work?

The GRESB rating also compares businesses by grouping scores within the same investment category and area. These peer groups help better understand results in the context of a business’s investment strategies. The top 20% receive five stars, the next 20% get four stars, and so forth, highlighting both individual achievements and overall performance in the real estate sector.

Why does GRESB matter in the property sector?

GRESB has firmly established itself as the trusted benchmark for the property sector to report on and evaluate ESG performance.

GRESB evaluations deliver a consistent and comparable view of ESG risks and opportunities. It also provides useful insights so that property owners can make informed decisions about any improvements made to assets. Essentially, it’s about driving improvement on year-on-year performance, identifying gaps, and elevating ESG strategies for your properties annually. The detailed benchmark report and score provides the necessary insight for continuous improvement within the property sector.

Who is best placed to support with GRESB?

As expectations for transparency, climate action, and ESG leadership continue to rise, GRESB is set to play an increasingly pivotal role in the sector’s future. There are currently only around 485 GRESB Accredited Professionals world-wide able to help facilitate end-to-end management of this kind of reporting for your property.

At Amber, we are lucky to have a GRESB Accredited Professional on the team. Please reach out to see how we can support you on your sustainability journey.