What are the factors or scoring criteria in GRESB (Global Real Estate Sustainability Benchmark)?
GRESB (Global Real Estate Sustainability Benchmark) evaluates the sustainability performance of real estate portfolios and assets based on a range of environmental, social, and governance (ESG) factors. The scoring criteria for GRESB is broken down into two main components: management and performance.
The management component evaluates the quality of a company's ESG management systems and policies, including its approach to identifying and addressing ESG risks and opportunities. The management component is further broken down into six subcategories:
1. Management and Policy: This subcategory evaluates how well a company has established policies and procedures for managing ESG risks and opportunities, as well as how it communicates these policies to stakeholders.
2. Implementation: This subcategory evaluates the extent to which a company has implemented its ESG policies and procedures, including the allocation of resources and the integration of ESG considerations into decision-making processes.
3. Monitoring and EMS: This subcategory evaluates the company's approach to monitoring and reporting on its ESG performance, as well as the use of Environmental Management Systems (EMS) to manage environmental risks.
4. Stakeholder Engagement: This subcategory evaluates the extent to which a company engages with stakeholders on ESG issues, including customers, suppliers, employees, and the local community.
5. Risk Management: This subcategory evaluates the company's approach to identifying and managing ESG risks, including climate-related risks, natural resource risks, and social risks.
6. Performance Indicators: This subcategory evaluates the company's use of performance indicators to measure and report on its ESG performance, including energy and water consumption, greenhouse gas emissions, and waste management.
The performance component evaluates the actual ESG performance of a company's real estate assets and portfolio. The performance component is further broken down into seven subcategories:
1. Energy: This subcategory evaluates the energy efficiency of a company's real estate assets, including the use of renewable energy sources.
2. Greenhouse Gas Emissions: This subcategory evaluates the company's greenhouse gas emissions, including both direct and indirect emissions.
3. Water: This subcategory evaluates the company's water usage and management practices, including the use of water-efficient technologies.
4. Waste: This subcategory evaluates the company's waste management practices, including waste reduction, recycling, and disposal.
5. Health and Well-being: This subcategory evaluates the extent to which a company's real estate assets promote the health and well-being of occupants and the local community.
6. Social: This subcategory evaluates the social impact of a company's real estate assets, including the company's approach to community engagement, affordable housing, and labor practices.
7. Governance: This subcategory evaluates the governance practices of a company, including the independence of the board of directors, the quality of financial reporting, and the approach to risk management.