What are the ESG point scoring matrix to use when considering investing in real estate assets?
There are several ESG (Environmental, Social, and Governance) scoring frameworks and matrices available that can be used to evaluate the sustainability and social impact of real estate investments. Here are a few examples:
1. GRESB Real Estate Assessment: This is one of the most widely recognized ESG scoring systems for real estate assets. It evaluates the performance of real estate portfolios on various ESG factors such as energy efficiency, carbon emissions, water usage, waste management, social impact, and governance practices. The assessment provides a score on a scale of 0-100 for each category and an overall score for the portfolio.
2. MSCI ESG Ratings: MSCI provides ESG ratings for companies and real estate assets. The ratings are based on various ESG factors, including climate change, resource depletion, pollution, labor practices, and human rights. The ratings range from AAA to CCC, with AAA being the highest rating.
3. Sustainalytics ESG Risk Ratings: Sustainalytics provides ESG risk ratings for real estate assets based on various ESG factors such as environmental impact, social responsibility, and governance practices. The ratings range from 0-100, with 0 indicating the lowest ESG risk and 100 indicating the highest ESG risk.
4. CDP Climate Change Scores: CDP provides scores for real estate assets based on their climate change mitigation and adaptation strategies. The scores range from A to D, with A being the highest score.
5. FTSE4Good Index Series: This index includes companies and real estate assets that meet various ESG criteria such as environmental impact, social responsibility, and governance practices. The index is used as a benchmark for sustainable investors.
Each of these frameworks considers different aspects of ESG factors. It's important to consider which factors are most important to you when selecting a matrix to use for evaluating real estate assets.