ESOS Phase 2 compliance: Have you got a plan in place?

With the compliance deadline for ESOS Phase 2 just a year away – 5 December 2019 – proactive organisations have started to prepare by planning and carrying out energy audits as part of the compliance process.

With only a few exemptions for public bodies, your organisation qualifies if on the 31st December 2018, it meets the ESOS definition of a large undertaking:

  • You employ 250 staff or more
  • You have an annual turnover exceeding €50m and a balance sheet exceeding €43m

Qualifying organisations that fail to undertake an ESOS assessment will be liable for a penalty of up to £50,000 and details of non-compliance would be published.

To avoid this action, organisations are required to complete the following compliance procedures;

  1. Measure and report energy use for a continuous 12-month period (overlapping the qualification date of 31 December 2018), to include energy consumed by buildings, industrial processes and transportation activities
  2. Identify your areas of significant energy consumption. ESOS assessments must be completed to cover at least 90% of an organisation’s total energy consumption
  3. Appoint a Lead Assessor to carry out, oversee or review your energy audits and overall ESOS assessment
  4. Undertake energy assessments for your areas of significant energy consumption using one or more of the following approved routes:
    • ESOS Energy audits
    • Display energy certificates
    • An ISO 50001 Energy Management System
  5. Report compliance to the National Scheme administrator – the environmental agency in England, SEPA in Scotland, NIEA in Northern Ireland and NRW in Wales and store your records of assessment.

Don’t forget to take advantage of the energy saving opportunities identified – EVORA identified £2.8M of energy savings in Phase 1 of ESOS.

With our expertise and data management solution SIERA, we can implement energy efficiency programmes, leading to substantial reductions in energy usage and associated costs. Our energy management team typically find quick win energy savings with payback in less than a year. Read more here on how ESOS can be a long-term investment to your business.

EVORA employs qualified Lead assessors and can support you to develop a practical compliance strategy that is appropriate for your organisation.  To ensure you fully comply with ESOS Phase 2, we offer a range of practical solutions. Find out more in our ESOS Compliance Guide .

ISO 50001 2018 revision

Earlier this week, the International Standard for Energy Management Systems (EnMS), ISO 50001 was given its official reboot through the launch of the 2018 revision; updating the 2011 issue. Organisations with existing ISO 50001 certifications have up to three years to transfer to the new standard. Whereas, businesses seeking energy management accreditation for the first time can progress directly with the 2018 version.

The ISO 50001 standard is an internationally recognised framework for the supply, use and consumption of energy in all types of organisations. As well as the direct benefits of saving energy, if you have an ISO 50001 energy management system that’s certified by an approved certification body and covers all your energy use, this can count as your company’s compliance route to Article 8 of the EU Energy Efficiency Directive (Energy Savings Opportunity Scheme- ESOS – in the UK) .

The revision follows similar recent updates to other standards including ISO 9001:2015, and ISO 14001:2015, to include common terms, definitions and structures to provide a high level of compatibility across the ISO suite of standards.

The main changes in the 2018 revision include:

  • Adoption of “high level structure” and common terminology already reworked into ISO 9001:2015 and ISO 14001:2015
  • Stronger focus of the role of top management and leadership engagement
  • More clarity on definitions, including “energy performance improvement”
  • Greater emphasis on risk-based approaches to improving energy performance
  • Clarification on exclusions of energy types
  • Clarification of energy performance indicator (EnPI) and energy baseline (EnB) text to provide a better understanding of these concepts.

The focus on continuous improvement remains active in the revised standard. Driving continual improvement is what EVORA specialises in and we can assist you in implementing and/or transitioning your energy management approach to the new ISO 50001 framework.

With our Plan, Do, Act approach, we can help you develop a tailored EnMS aligned to your business needs which takes account of practical measures in reducing your energy consumption. Contact our experts if you’d like to find out more.

Streamlined Energy & Carbon Reporting – What does it mean for you?

Following extensive consultation the UK Government has announced the new Streamlined Energy and Carbon Reporting framework (SECR), beginning April 2019. But how will it work and what does it mean for businesses?

Since its initial announcement in 2016, the Department for Business, Energy, and Industrial Strategy (BEIS) has been working on a new framework to simplify the complicated environmental reporting landscape that exists currently.

A formal consultation took place last year which EVORA took part in, and off the back of that the Government announced last week how the new framework will look. Under the new legislation:

  • All quoted companies will be required to report their UK energy use, associated Scope 1 & 2 emissions, an intensity metric and, where applicable, global energy use.
  • All “large” unquoted companies will be required to report their UK energy use, associated scope 1 & 2 emissions, and an intensity metric.
  • All “large” LLPs will be required to report similar to Unquoted Companies.
  • Unregistered companies required to prepare a Directors’ Report will also need to include similar information to unquoted companies.

The reporting of Scope 3 emissions will be voluntary for all involved. A statutory de minimis (minimum consumption for qualification) of 40,000 kWh has also been included.

Seamless data acquisition will be key to managing requirements with the least disruption – contact our team to see how EVORA and our sustainability software, SIERA, can achieve this for you

The framework will be applied through Companies House, which means there are no requirements for non-UK registered companies. The Companies House definition of “large” will also be applied (more than 250 employees or annual turnover of £36mil and annual balance sheet of £18mil), and the information will need to be included in the Annual Reports which are submitted to Companies House.

If you have further questions or are seeking assistance with your report, get in touch and our team of experts here at EVORA will be happy to help.

GRESB 2018: over, not done with!

With GRESB over we talked to a number of staff across our business to get a view on experiences faced, whilst it was still fresh in the team’s mind.

Supporting the team for our busiest ever GRESB season.

Paul Sutcliffe – Director

I’ve lost count of the number of GRESB submissions I have supported over the years. I do know that this year at EVORA we supported around 70 submissions, from a broad array of clients (covering sector Number 1s through to first time participants). Our busiest ever GRESB season!

Whilst we represent a broad array of participants with different fund structures and objectives, we do see some common themes. Our clients universally want to ensure that:

  1. Sustainability policies and practices are effective and appropriate for their organisations
  2. Their GRESB submission correctly and accurately reflects their true sustainability position.

There is a clear recognition and acceptance that GRESB is a one size fits all approach. To use a sloppy analogy – sometimes the shoe fits perfectly, other times it’s a bit loose, sometimes too tight, but everyone can still walk in it.

With the GRESB deadline of 12 noon Eastern US time fast approaching, I prepared myself for some long nights. I needn’t have worried though. Our team and clients mobilised, focused, used SIERA (our sustainability software platform) and worked hard to get everything in on time. Final confirmation, of the last submission (for me) came from the last of my clients early on Saturday morning. I breathed a sigh of relief. I had a weekend to enjoy!

One last thing. GRESB has been able to galvanize the industry and drive forward the sustainability agenda. Our industry should work with this and in particular, reflect when the results come out in September. I am a strong believer that GRESB should be used to inform, not drive individual organisational ESG agendas.

Time flies when it’s your first GRESB year!

Katie Brown – Junior Sustainability Consultant

As this was my first year supporting GRESB, there was a lot to grasp and a lot to learn, fast! The time flew, and on reflection preparation is key. Some elements of the submission would have been extremely challenging and time intensive to complete without the help of our SIERA software. We would not have been able to support so many submissions without it. It was important to plan well and communicate early – time well invested should be reflected in an accurate (and higher) GRESB score.

Some elements of the submission would have been extremely challenging and time intensive to complete without the help of our SIERA software. We would not have been able to support so many submissions without it.

I have been impressed that despite the focus on environmental performance of assets forming a core element of the survey, there is a broad spectrum of the sustainability agenda covered, with attention also on social and governance topics including health and safety, management, policies, and supply chains, just to name a few! Also, the inclusion of the health and wellbeing module, and this year a new module on resilience, brings to the forefront important and emerging ESG trends.

The GRESB survey promotes much needed transparency of the sustainability efforts by businesses in the real estate sector, both as a benchmarking tool and providing greater visibility for investors, but also provides a great opportunity to guide and inform more ambitious and rigorous ESG strategies going forward.

It’s all about the data.

Nick Hogg – Associate Director (SIERA Software)

As those that have participated in the GRESB submission process will know, the amount of information and effort that can be required to provide a seemingly straight forward number in answering a GRESB question can be sometimes underestimated. The Performance Indicators is an aspect where this can challenge participants due to sheer quantum of data that might need to be handled across all the impact areas for an entity, not least with more participants submitting data at asset level.

Across all the submissions we were supporting on this year we found that SIERA handled over half a million datapoints through the Asset level interface alone. We have blogged before that GRESB have allowed the automated transfer of Performance Indicator (PI) data from sustainability management software systems, such as SIERA, directly into the GRESB portal for the last few years. We found this automated transfer of data through SIERA vital, not just in trying to make the complexity of reporting more efficient but essential in establishing a robust and transparent method of reporting asset level data.

Across all the submissions we were supporting on this year we found that SIERA handled over half a million datapoints through the Asset level interface alone.

We introduced additional functionality in SIERA this year to further automate the calculation of energy, GHG and water intensity and have plans to continue expansion of SIERA’s GRESB capability over the coming months.

Submissions are done, but it’s not over!

Louise Russell –  Senior Sustainability Consultant

This will have been my fourth year supporting GRESB clients. I support a variety of clients each at a different stage on their sustainability journey.  Existing clients who are already hot on sustainability continue to maintain leading positions principally due to their wider sustainability programmes which we support during the year. For them, GRESB is useful to benchmark the position of their various funds against peers and internally. However, GRESB is not the driver and broader sustainability as well as responsible investing is something that is taken very seriously.

For my clients that were newcomers to GRESB this was the first time that they as an organisation considered what sustainability means to them. Clients are often surprised by what is already in place within their organisations albeit via an unstructured approach. Where we assist is coordinating the various stakeholders to collate the responses. Whilst we never advise that a sustainability strategy should be GRESB driven it does act as a gateway for those approaching sustainability for the first time.

The key to this is starting early especially for those clients that report in calendar year, waiting until the results come out in September will only allow just over three months to December to make improvements before the GRESB reporting year is over.

Now that we are post-GRESB these same clients are looking to build on their existing processes, formalise their sustainability strategy and put in place a sustainability programme that will deliver an improved score in 2019. The key to this is starting early especially for those clients that report in calendar year, waiting until the results come out in September will only allow just over three months to December to make improvements before the GRESB reporting year is over.

If you have anymore questions about the content of this blog or GRESB in general, get in touch and our team of experts will be happy to help.

GRESB Premier PartnerAs a GRESB Real Estate Premier Partner, we are perfectly positioned to provide GRESB support. View our official Premier Partner profile.

We can work with you to complete the submission and understand your scoring, as well as develop a sustainability plan that will improve your future GRESB performance and align with your organisation’s key environmental objectives.

Energy Savings Opportunity Scheme (ESOS) – a burden or an opportunity?

Regulatory reporting can often feel a burden, and in areas which are more specialist, such as energy and carbon reporting, it can be a daunting experience.

Energy and carbon reporting regulations have principally been introduced to highlight the materiality of the impacts and provide visibility of the opportunities to deliver both energy and cost savings.

The reality is that many organisations only want to be compliant and it is only the few who see the opportunity to push forward opportunities and create a competitive advantage.

A good example of this is the Energy Savings Opportunity Scheme (ESOS).

ESOS (Article 8 in Europe) is upon us again in the guise of Phase 2 and will impact large undertakings both in the UK and Europe, requiring them, in simple terms, to measure 12 months of energy across their organisation and identify energy efficiency initiatives through energy audits. For more information on meeting compliance read our ESOS compliance guide.

ESOS has been developed to help organisations understand their total energy use and identify opportunities to deliver energy and cost savings, which is presented to senior management. It is hoped by the government that ‘low hanging fruit’ with pay backs of less than a year will be a no brainer to organisations to implement.

Although the deadline is the 5thDecember 2019, there are advantages in kicking off early with the energy audits, firstly to have a project plan in place to ensure you meet the deadline and secondly to identify cost-effective energy efficiency opportunities, which could provide immediate benefit to the financial bottom line. In Phase One, EVORA identified £2.8M of low cost energy savings for its clients.

Do you see ESOS as a cost to your business or an investment?

ESOS only requires you to identify the opportunities and ironically many organisations did not implement the initiatives found in Phase One. This turns ESOS regulation into a cost rather than an investment – a significant missed opportunity.

An example of the quick win opportunities is highlighted by work EVORA delivered in collaboration with a property management company to deliver an energy efficiency programme utilising EVORA’s energy management software, SIERA. The graph below displays the weekly energy profile at the office building (110 Queen Street in Glasgow) before (light blue line) and after interventions (dark blue line) were brought about by the improvement programme.

Significant improvements in the energy profile can be seen, especially at the weekend, which has delivered savings of 30% (greater than £30,000 actual savings in the year) without any capital expenditure. This was achieved despite increased occupancy at the property throughout the year and payback was less than three months.

For more information on how we delivered these savings read the full case study here.

This is certainly not the exception and we have worked with an array of sectors including power generation, real estate, retail and hotel & leisure to optimise energy efficiency, often achieving surprising results.

If you’d to learn more about how we can support you with your ESOS regulation and turn a compliance cost into a long term investment, contact us.

GRESB Survey: We answer your questions

With many of us currently knee-deep in spreadsheets for this year’s GRESB submissions, we took some time out to speak with one of our Consultants and ask your questions about the GRESB survey.

About the survey

GRESB is an investor-driven assessment of sustainability performance, that gives Real Estate and Infrastructure funds of all shapes and sizes the opportunity to measure and showcase their performance on a range of environmental, social, and governance issues, and compare themselves to similar entities in the industry.

Real Estate and Infrastructure funds participate in two separate GRESB Surveys which, whilst having a different set of questions, have a similar structure and cover many of the same core ESG issues. At EVORA we have in-house experts on both surveys, so if you’re looking for assistance with your submission or just want some more information, then give this blog a read to get the basics and feel free get in touch if you want to know more.

Q.  How long is the overall submission process to the GRESB portal? Is there a timeline for the submission process?

The final GRESB deadline is July 1st, but a submission doesn’t come together over night! I would say that, to allow time for careful completion of the portal and a proper review, you generally need to have started collating data and evidence in March and you want the pieces in place by early June.

GRESB also offer a ‘Response Check’, where a GRESB employee will evaluate your response and help ensure you’re not going to miss out on points through mis-completion or insufficient evidence. The deadline for this is June 8thso, whilst you don’t have to be finished at this juncture, you want to be most of the way there to get the maximum benefit from the Check.

Q. What kind of evidence do I need to prepare before the GRESB portal opens?

To uphold the credibility of GRESB, a large amount of supporting evidence is required throughout the Survey, and rightly so. Certain indicators are entity specific, such as tenant surveys, risk assessments and completion of technical building audits, whereas others do allow responses from the Organisation / investment manager, such as employee and governance issues.

The key thing here is to make sure people on all levels are well-informed of what GRESB entails for them and that, linking back to the previous question, you start getting organised early!

Q. What is the most efficient way of collating and submitting to the GRESB portal if I have an international portfolio? 

At 25.6%, the Performance Indicators section carries the greatest weight of all the Aspects. Therefore, whilst it is often a challenge to organise, the hard work is heavily rewarded by GRESB. I would highly recommend that you get some purpose-built environmental data management software such as ours, SIERA, which is designed with GRESB in mind and can produce an import sheet which can be uploaded straight onto the GRESB Portal. Data collection programmes can be at all levels of temporal granularity, from a one-off annual request ahead of GRESB, to half-hourly data imports into our M&T module.

Q.  How can I improve my GRESB scores?

Each entity is a little bit different and will be stronger and weaker in different areas, however these are some general areas that you can target:

  • Get an EMS – Having an Environmental Management System in place not only scores points directly on the GRESB Survey, but has the indirect effect of planning and guiding your ESG strategies to be as effective as possible.
  • Sort your data – As outlined above, PI data is a huge part of the Survey so it’s worth the effort of organising it. EVORA’s bespoke environmental data management software, SIERA, is perfect for minimising effort and maximising performance in these elements of GRESB.
  • Green Building Certifications – with a global average of just 46 out of 100 last year, the Certifications aspect is a common weakness for participants. At EVORA, we have in-house BREEAM, WELL, LEED and Fitwel Assessors, so get in touch if you’re interested in certification to bolster your GRESB score and reap the wider benefits of certification.

Read more about our research and how to improve your score in this blog.

Q.  Can you make a submission without disclosing the results?

A cornerstone of GRESB, as an investor-driven sustainability assessment, is that the results can be made visible to investors. However, there is a “Grace Period” for first time participants allowing them to opt-out of sharing  result whilst they get to grips with the Survey.

Q.  Can I only submit my evidence and responses in English?

Responses do have to be made in English, however, GRESB will allow you to submit foreign language documents as evidence. In these circumstances, be sure to clearly indicate in the open text boxes provided exactly where in the document the relevant information is held, along with a thorough summary of content. This will help ensure nothing is missed or misinterpreted.

Q. What happens after I make my submission?

GRESB’s response validation process takes place in July and August, with the official results released at a series of events across the world in September. You will also receive your Benchmark Report at this point, which gives you the full breakdown of how you did on each Dimension, Aspect, and Indicator. Off the back of this, EVORA offers a “GRESB Gap Analysis” to new and existing clients, where one of our in-house experts will evaluate your performance and pick out key opportunities for improvement, and can then help implement them. In truth, for top GRESB performers, the process never really stops! The Survey really rewards comprehensive, sustained sustainability programmes.

Year-on-year the GRESB survey is becoming increasingly comprehensive. This year increased scrutiny has been placed on some existing questions, such as asking that Green Building Certification ratings be provided, some new questions have been added, and every participant will be subject to at least a low-level of validation. Furthermore, the currently optional Health & Wellbeing and Resilience modules are set to be built into the main Survey next year and in three years respectively. I expect this trend of increasing complexity and moving goalposts to continue as investor demands expand and change, so having an experienced GRESB consultant to provide support will become increasingly important.

Here at EVORA, we are entering our seventh year assisting with GRESB submissions, and have acquired a great knowledge base in this time to help maximise your GRESB performance. We have experience of delivering more than 150 submissions, including a number of 5 Star submissions and Sector Leader status.

In conclusion, I think the key takeaways for a successful GRESB submission is to: make sure everyone on all level is well informed and knows their role, start your submission early, use SIERA, and get an experienced consultant on board to help out.

If you have anymore questions about the content of this blog or GRESB in general, get in touch and our team of experts will be happy to help.

GRESB Premier PartnerAs a GRESB Real Estate Premier Partner, we are perfectly positioned to provide GRESB support. View our official Premier Partner profile.

We can work with you to complete the submission and understand your scoring, as well as develop a sustainability plan that will improve your future GRESB performance and align with your organisation’s key environmental objectives.

Do your buildings meet the Minimum Energy Efficiency Standards (MEES)?

Are your assets at risk as a result of the Minimum Energy Efficiency Standards (MEES) regulations which came into force on the 1st of April 2018?

In a previous blog post titled “MEES regulations: How they will impact flexible workspace from April 2018” written by my colleague Russ Avery, he gave a 10-point strategy on how you can manage MEES risks.

The regulation means that landlords cannot let, extend or renew a lease for F and G rated properties unless an exemption applies. One such (temporary) exemption is that the EPC rating cannot be improved through measures that pay for themselves within a 7-year period.

E rated properties may still be at risk from MEES regulations!

Landlords and their professional advisors should also be aware that there was a fundamental change to the EPC calculation methodology effective April 2011.

This means that assets which had their EPCs prepared prior to this date could be at risk even if they were E ratedClick To Tweet

This means that assets which had their EPCs prepared prior to this date could be at risk even if they were E rated. We can identify these assets after reviewing your existing EPC’s and help establish improvement programmes to improve your rating.

What implications will this regulation have on your assets?

MEES regulations will need to be factored into the day-to-day asset management of commercial real estate. We consider below some implications of the regulations.

Transactional value: We have first-hand evidence as a company that poor EPC ratings affect transactional values. We know of transactions where hundreds of thousands of pounds have been ‘chipped’ off the agreed purchase price once the due diligence processes established incorrect EPC certificates were in place.

Valuation: Both yields estimated rental values (ERVs) are ‘at risk’ because of MEES. Research indicates that the effect of disregards at a rent review and under a 1954 Act lease renewal on ERVs could impact capital values by more than the cost of relevant improvements.

There is an assumption by some professionals in the market that MEES will hit secondary and tertiary assets more than prime real estate. This may be incorrect due to the way in which commercial property is typically valued. In its simplest form, capital values are determined largely by the rental value of the premises, either actual or potential. A valuer looks at this income and applies an appropriate ‘all risks yield’ to reflect the security and term of income, and any potential for future growth. This is represented by the simple formula: NI x YP = CV, where NI in net income, YP is years purchase, and CV is capital value.

The cost of the installation (or disregard) of building services is reasonably uniform subject to locational adjustment factors. Technologically speaking, a heat pump installed in London will be the same as a heat pump installed in Hull, and cost is affected by labour rather than the technology itself. A prime yield might be 5%, where as a secondary yield might be 10%. A £1.00 reduction in rental value as a result of MEES will therefore affect capital values by £20.00 on the prime investment (100/5 = 20 YP) and by £10.00 on the secondary investment (100/10 = 10 YP).

Dilapidations: The effect of Section 18 Valuations and supersession generally have the potential to render tenant repairs useless because of MEES. If precedent is established for this, then the dilapidations market could be significantly impacted by MEES. We see this as a potentially market disruptive issue for property. Read more about dilapidations here.

How to manage MEES (our previous 10 step guide)

  1. Review how you store your data
  2. Identify any gaps in the data and any assets at risk
  3. Consider the use of software, such as SIERA
  4. Use CIBSE accredited assessors
  5. Ask your assessor to review the existing EPC for accuracy
  6. If you need a new EPC, ask for an indicative certificate
  7. Review point 6 in the context of the lease
  8. Consider ways to recapture capital costs through energy savings
  9. Retain future access to the energy model used to prepare the EPC
  10. Review how operational performance can be monitored – and even linked to the EPC model

EVORA EDGE can support you in all cases as we employ competent CIBSE qualified level 5 EPC assessors.

Our expertise

EVORA can identify and manage MEES derived risk by developing an asset management strategy at the fund and portfolio levels.

Our technical engineering division EVORA EDGE is experienced in using our revolutionary BIM:SAM– Building information modelling for Strategic asset management to manage MEES risks, engineering and energy efficiency, resource efficiency and capital cost planning.

Building Information modelling (BIM) can be used for high-level MEES risk assessments and act as a ‘digital passport’ for your building, recording data and information of the building and its services.

The BIM can be integrated into our SIERA software to create a powerful monitoring and targeting (M&T) toolset.

BIM: SAM merges real intelligence and innovation with strategic asset management.

“By using a dynamic BIM model, alongside monitoring and targeting through our SIERA software, we can bring real intelligence and innovation within the strategic asset management approach.”

Neil Dady, Director, EVORA EDGE

To ensure your buildings remain lettable after the 1st of April 2018. Please don’t hesitate to get in touch with our experts.

Download our BIM: SAM brochure for all the information in a handy PDF and see our BIM:SAM approach in action.

GRESB Support 2018

GRESB reporting season for real estate and infrastructure participants is here again, and as a GRESB Premier Partner, EVORA is recognised as a leader in the provision of GRESB support, including training and strategic insight.

We have provided GRESB support for the last six years, and in 2017 we directly supported over 50 submissions from organisations that represent a cross section of the European property industry. We have helped clients get on the GRESB ladder and have equally supported clients to be market leaders.

We sit on a number of GRESB benchmark committees and our close working relationship with GRESB ensures that we are prepared and aware of future changes.

With our experience and expertise in this ever-emerging market sector, we ran a webinar last week with participants across Europe on our end to end service Titled “How to overcome GRESB challenges and achieve your best score”.

In this session we shared valuable insights and tips in a 5-point GRESB strategy, to increase awareness on how to get the best out of the reporting process and how you can align GRESB ratings with your long-term sustainability strategy.

Five point GRESB strategy

Our GRESB strategy covered an action plan for a seamless GRESB submission process. A quick recap is set out below.

  1. Plan your next GRESB submission in advance. Map out a plan on who to talk to, what to ask and which evidence you need to provide.
  2. Reduce the complexity of reporting by engaging in a streamlined process with your property managers. At EVORA, our consultants provide asset-level templates to property managers, to help in the collation of asset-based questions such as technical assessments, tenant engagement and efficiency measures.
  3. Improve scoring, where appropriate. Don’t miss out on easy points, discounting your reporting efforts by not meeting validation requirements. Read more here on our GRESB verification blog on how to ensure your response is accurate and acceptable by GRESB.
  4. Focus on data integrity and performance. Our proprietary software SIERA ensures that the process of data management is transparent, accurate and robust.
  5. Finally set actions for future success. GRESB addresses several key areas of an EMS within their survey such as management responsibilities, communication, training, objectives and, importantly, the results they are delivering. Developing an EMS therefore seems an appropriate approach to score well in GRESB. Find out here how a Plan-Do-Check-Act (EMS) approach can impact your GRESB score.

Final thoughts for GRESB success in 2018;

  • Start early / now!
  • Engage with internal colleagues and external stakeholders
  • Understand indicator intent and scoring requirements
  • Gather evidence and identify alignment to requirements
  • To make it easy on yourself and others – get in touch and our team of experts will be happy to help.

Request the webinar recording

GRESB Premier PartnerWe are perfectly positioned to provide GRESB support. View our official Premier Partner profile.

We can work with you to complete the submission and understand your scoring, as well as develop a sustainability plan that will improve your future GRESB performance and align with your organisation’s key environmental objectives.

GRESB Infrastructure Survey: What is it?

EVORA is now entering its seventh year of helping entities produce GRESB Real Estate Survey submissions, and with each passing cycle we have accrued more expertise, expanded our client base, and become leaders in the field. Last year we provided comprehensive support to 26 funds and general support to many others, and this year the figure is set to get even higher as we gain greater recognition for our expertise.

But GRESB offers more than just the Real Estate Survey, and for 2018 we have expanded our scope of services to include the GRESB Infrastructure Survey.

What is the GRESB Infrastructure Survey?

Much like its real estate equivalent, the GRESB Infrastructure Survey is an investor-driven assessment of ESG (Environmental-Social-Governance) performance for entities.

Much of the content is also very similar, however the setup of the Infrastructure Survey is quite different from that of GRESB Real Estate, as it is broken down into two sub-surveys: 1) the Fund Assessment and 2) the Asset Assessment.

The Fund Assessment is a relatively small element of the overall survey, and focuses on ESG policies and principles, persons responsible for ESG issues, and the monitoring and mitigation of ESG risks, at the entity level.

Meanwhile, it is the Asset Assessment that is broken down into the familiar Management, Policy & Disclosure, Risks & Opportunities, Monitoring & EMS, Stakeholder Engagement, Performance Indicators, and Certification & Awards modules, albeit with differences in the questions themselves and the distribution of points compared to GRESB Real Estate. Additional content includes questions relating specifically to biodiversity and air pollutants in the Performance Indicators section, whilst there is for example less focus on certification.

An optional Resilience module has also been introduced for GRESB Real Estate and GRESB Infrastructure in 2018 – you can read more about it here.

Asset Assessments – Weighted Asset Average

You are free to submit a standalone Fund Assessment without asset-level evaluation if you wish. However, to get an overall GRESB Infrastructure score you must also complete the Asset Assessment for at least 25% of your portfolio (usually weighted by GAV). Furthermore, there is an advantage to completing Asset Assessments for as many assets as possible, as your scores are collated into a Weighted Asset Average (WAA) where assets that did not complete an Asset Assessment score zero.

Your WAA is worth 70% of the final GRESB score, with the Fund Assessment making up the other 30%. A simple example calculation is provided below:

GRESB Infrastructure Survey - WAA table

Combined with an example Fund Assessment score of 76, the overall GRESB score would be:

(56   x  70%)   +   (76  x   30%)   =   62

Which represents:

(WAA Score x Asset Assessment Weighting) + (Fund Score x Fund Assessment Weighting) = Overall Score

The GRESB Infrastructure Survey is comprehensive in its coverage of ESG content, whilst also allowing a wide range of infrastructure assets, from airports to schools to toll roads to windfarms, to be compared. ESG issues matter for all forms of built infrastructure, and GRESB provides an ideal platform to meet investor and public demand for improved sustainable performance.

If you think GRESB Infrastructure might be for you, then get in touch and our team of experts will be happy to help.


GRESB Premier PartnerAs a GRESB Real Estate Premier Partner, we are perfectly positioned to provide GRESB support. View our official Premier Partner profile.

We can work with you to complete the submission and understand your scoring, as well as develop a sustainability plan that will improve your future GRESB performance and align with your organisation’s key environmental objectives.

GRESB Resilience Module: will you survive and thrive in the face of systems disruption?

When you hear the word resilience you might think of an activist like Martin Luther King, an explorer such as Ranulph Fiennes, or an athlete akin to Mo Farah.

In all walks of life it is an admirable and desirable quality, but the meaning it carries in the field of commercial property is perhaps not as well defined or understood as it needs to be given the increasing role it is expected to play in securing long-term success.

GRESB is recognising the importance of resilience in real estate portfolios by introducing a brand new module for the 2018 GRESB survey. Much like the Health & Wellbeing module that came before it, the GRESB Resilience module will standalone and evolve over the next 3 years with the intention of subsequently integrating it into the main GRESB survey.

But what is it that makes real estate resilient?

What is it that makes companies and funds resilient?

And what is it that will make you GRESB resilient?

What is resilience?

The exact definition of resilience in a sustainability context is not yet fully agreed, however the IPCC defines it as:

“The ability of a system and its component parts to anticipate, absorb, accommodate, or recover from the effects of a hazardous event in a timely and efficient manner, including through ensuring the preservation, restoration, or improvement of its essential basic structures and functions”.

Meanwhile, GRESB defines it as:

“The capacity of companies and funds to survive and thrive in the face of social and environmental shocks and stressors”.

In short, how well equipped is your organisation to deal with big events that disrupt systems (floods, fires, earthquakes, terrorist attacks etc.), and the stressors that make you more susceptible to harm when events do occur (poverty, environmental degradation, aging infrastructure etc.)?

The GRESB resilience module

The GRESB Resilience module has been kept fairly simple this year, asking basic-level questions on the involvement of management and stakeholders in resilience-related decisions, on asset and business operational risk reporting, on strategies for the management of risk, and, interestingly, to “describe your response to three illustrative, disruptive, extreme, or catastrophic events or near misses during the reporting period”. I am intrigued to see what kind of responses come in for this last one.

I am confident that the Resilience module will follow the projected path of the Health & Wellbeing and ultimately become a part of the main survey. Firstly, because the probability of these system shocks is indisputably growing for many issues (e.g. climate change, terrorism, I.T. security) and secondly, because of the potentially huge environmental, social, and financial consequences that could result from failing to invest in resilience.

Exactly how the module will look in a few years’ time is hard to say, with GRESB using this year to gauge the current state of play in the industry. I doubt it will progress to any kind of individual asset-level evaluation any time soon given the multitude of uncertainties in resilience modelling and the unique situation every asset is in with regards to external shocks and stresses. Instead, I expect it will likely remain procedural, focussing on how organisations go about identifying, assessing, and mitigating risks in their portfolio, and how they are communicating these risks to different parties. However, we wait with intrigue to see how this new reporting element develops.

GRESB Premier PartnerAs a GRESB Real Estate Premier Partner, we are perfectly positioned to provide GRESB support. View our official Premier Partner profile.

We can work with you to complete the submission and understand your scoring, as well as develop a sustainability plan that will improve your future GRESB performance and align with your organisation’s key environmental objectives.

Contact us about GRESB support.