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Fourth Consecutive Year Sector Leader Status for Hines in the 2020 GRESB Real Estate Survey

EVORA Global is incredibly proud to have supported Hines pan European Core Fund (HECF) in achieving GRESB European Diversified Fund Sector Leader for an unprecedented fourth year in a row.

GRESB, one of the leading ESG benchmarks for real estate and infrastructure investments across the world, has named HECF one of the “best of the best” in sustainability leadership across the real estate sector.

Achievements this year include 100% Sustainability Certificate coverage across the portfolio, as well as a 15.7% reduction in landlord-controlled energy use and a 23.8% reduction in landlord-controlled greenhouse gas emissions since 2016, for like-for-like assets. The Fund also ensured that at all landlord-controlled electricity supplies were either transferred to 100% renewable energy sources, or scheduled to transfer as early as possible in 2020.

HECF also ranked first out of all global 412 GRESB participants which participated in the optional Resilience module, demonstrating the portfolio’s ability to future-proof the value of its assets over time.

This is an incredible achievement and highlights Hines commitment to ESG. Congratulations to everyone involved!

“We are once again delighted on behalf of our client for these numerous excellent outcomes. It is great to have both Hines’ and EVORA’s hard work validated in this way. It’s a strong partnership that clearly brings great things out of one another. And now we must turn our attention to next year and beyond because – of course – there is still plenty more progress to make within ESG!”

Oli Pye, Director EVORA

“I wanted to take a moment to thank the EVORA team for all of the hard work, diligence and creativity throughout the year to deliver these outstanding GRESB results. As the impact of climate change accelerates, so should our ESG efforts, and I am happy to say that as a team we have been able to keep our eye on the ball and prepare the HECF portfolio in order to stay one step ahead.  I look forward to continuing to sharpen our pencils as we move forward.”

Daniel Chang, Managing Director, Hines

GRESB 2020 Scoring – Headline Changes

Along with the announcement that the deadline for GRESB submissions this year has been shifted back until the 1st August, GRESB have also released the scoring methodology for this year’s submission. The headline changes are outlined below:

Total Score

The scoring has reduced from 130 credits available down to 100, meaning that each credit is worth more in 2020 relative to 2019. The reduction to 100 credits overall makes it easier to evaluate and review impacts of certain questions. It is important to understand that although a lot of questions have seen a reduction in number of points available, the percentage contribution to the overall survey has in most instances remained the same. Key changes to scoring contribution from individual questions are summarised below.

Data Assurance

Points awarded for the assurance of energy, GHG, water and waste data has increased from 2% in 2019 up to 6% for the 2020 submission. This is a big shift in emphasis on the quality of utility data reported, and presumably in support of GRESB and the wider industry’s increasing focus on ‘investment grade’ ESG data.

Disclosure

The relative importance of disclosure,  for example via an entity level sustainability report,  has increased 22% compared to 2019.

Energy & GHG data

Points have increased regarding energy and associated greenhouse gas emission data from 15% up to 21%. This means successful efforts to collect energy data, preferably sourced via renewable contracts, across the whole portfolio will return a higher reward. It’s important to note that the amount assigned to energy has actually decreased but GHG has increased by a greater amount.

Water & Waste data

The contribution of water and waste was previously 3% and 2%, respectively. These have increased to 7% & 4%. This mirrors the importance being placed on data coverage and compliments the increase in Energy and GHG points.

Environmental/social risk assessments

This question has decreased from contributing 3% to 1% in 2020 which is likely the result of high marks being achieved in previous years and therefore the relevance of this question to ESG benchmarking reducing.

If you would like to understand more regarding the scoring methodology and key implications for your upcoming submissions, please get in touch.


EVORA are perfectly positioned to provide GRESB support after supporting 73 funds to submit to GRESB in 2019, including 25 funds located outside the UK. View our official Global 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 to see how we can help you.

Getting ready for GRESB season – Reporting tips and tricks

GRESB is imminently approaching! Which for a lot of us in the ESG (Environmental, Social & Governance) industry, it means getting ready to report all the relevant activities that have been undertaken by funds over the course of the past year. In order to smoothen your reporting process and evidence collection, I have looked to outline some tips and tricks which will hopefully help you successfully deliver this year’s submission.

Establishing what’s new

GRESB, as you would suspect, is not a static survey, with improvements and updates added each year which seek to adapt to and follow the rapidly changing ESG market. As such, the first tip I can give you is to start with the basics and review what has changed. Once you have identified high-level changes both in evidence requirements and topics covered, you can then begin to look at establishing the evidence available in order to answer each of the questions. If you are unable to sufficiently support your answer with available evidence on current practices or perhaps are not achieving the marks you would expect, then you can begin to plan ahead for next year. Remember, if you are reporting on calendar year, we are already a few months into the GRESB 2021 reporting period, so you might have limited time to establish and develop new policies and practices!

Getting organized

Good organization is the epitome of so many things in life, and GRESB is no exception. It’s very easy to have a quick skim read of the GRESB survey and think that you send out a couple of emails and all will be rosy. That’s not the case I can assure you! An approach I have found successful is to identify at an early stage who your key stakeholders are and set out the information that each stakeholder will be required to provide. Early engagement will be helpful for your colleagues, as they will have oversight of information that will need to be provided further down the line, it also helps you avoid that last-minute panic over missing information. Using project management techniques, such as Gantt charts or online systems such as Microsoft Project can also help you get organized and keep track of everyone’s tasks and deadlines.

Gathering asset information

The performance section of the 2020 GRESB submission is worth a whopping 70% of the total marks, and therefore deserves plenty of attention. A key element is the coverage questions focusing on, asset-specific energy, water and waste efficiency measures, technical audits and Green Building Certificates, that have been implemented and carried out in the past three years (Note that Green Building Certificates are not time-bound). Logically, the smaller the portfolio the easier it will be to keep track of asset-level activities, but for those with high asset numbers it becomes increasingly difficult. Gathering asset information is often conducted by sending out spreadsheets, although this can result in multiple versions of spreadsheets floating about, which is something to be careful about. An alternative approach is utilizing online surveys that mitigate the risks associated with multiple spreadsheets.

Figure 1: Using a Data Management System to collate and store asset level initiatives

A hot tip is focus in on some key assets, for examples those that have recently undergone refurbishments, where a lot of asset initiatives are likely to have taken place. Remember to think ahead to next year’s submission and how you can utilize information collected for previous submissions.

Getting savvy with utility data

GRESB has a range of requirements in relation to how utility data is reported, and you can easily feel overwhelmed when dealing with large data sets where it’s vital that the outputs are accurate. Its good practice to review utility consumption at the most granular level time permits. I recommend reviewing utility data at a meter level, as it enables you to clearly identify gaps and inconsistencies and presents you with a clear picture of consumption patterns for each supply and building area. Automatically, this greater visibility will benefit you when having to provide a clear explanation to GRESB on sector-level variances and unusual intensities.

Figure 2: Using a Data Management System to automatically alert variances at meter and asset 

In light of all these observations, a data management system is proven to be able to simplify and demystify the whole utility reporting process and can help monitor, track and review consumption throughout the year. Why do the heavy lifting yourself when a computer can do it for you after all?

Hopefully, I have conveyed some useful tips for approaching GRESB this year and I will leave you with a parting quote to motivate you to get organized!

“Start where you are. Use what you have. Do what you can.”

Arthur Ashe

This article was originally published on GRESB Insights

GRESB 2020: Three Key Changes

Each year, GRESB works with its members and key industry stakeholders to update the assessment and address the material issues within Environmental, Social and Governance (ESG) performance of real estate investments.

Below we outline three of the key changes following the release of the 2020 GRESB Real Estate Reference Guide ahead of the GRESB assessment portal opening on the 1st April.


1. Structure

For 2020, separate components have been introduced to the Real Estate Assessment for Management, Performance and Development. The Management and Performance components replace the Management & Policy and Implementation & Measurement components from previous GRESB iterations.

The core component of Management is required for all participants, with the type of investment (standing or development) influencing the secondary component required. Separate benchmark reports will be issued for standing investments and development investments. As shown below:

GRESB Real Estate Reporting Structure
Figure 1 – GRESB Real Estate Reporting Structure. Source: GRESB 2020 Real Estate Reference Guide.

The 2020 inclusion of the Development component is a result of a merger of the previous ‘New Construction and Major Renovation’ module and the separate ‘Developer Assessment’ module. GRESB participants with development projects will now have a better understanding of their ESG performance and be able to compare with their peers.

Previously, the Development Benchmark only included developers, however funds with both standing investments and development projects will be included in both the Standing Investments Benchmark and the Development Benchmark – receiving two Benchmark Reports to reflect their performance in each component. The component weighting for each category in 2020 is outlined below for standing investment and developments:

GRESB Real Estate Assessment Scoring Methodology

Figure 2 – GRESB Real Estate Assessment Scoring Methodology. Source: GRESB, 2020 Real Estate Indicator Summary.

2. Assessment Review Period

GRESB has also introduced a Review Period into the assessment timeline with the aim of strengthening the reliability of participant responses and the subsequent benchmark results. The review period will begin on the 1st September when all participants will receive their preliminary GRESB results for 2020. Participants will be able to submit a review request before 15th September to GRESB using the Review Form. Final results are released to participants and investor members on the 1st October.


3. Asset Focus

GRESB has continued to develop further sector definitions to enable accurate and relevant comparisons with peers. Additional property types have been introduced for 2020 which will allow in the future for more granular benchmarking of asset performance. In addition, the terminology of ‘direct’ and ‘indirectly’ managed assets has also been removed.

The timeframe for asset energy, water and waste efficiency initiatives and technical building assessments has also been reduced from four to three years. This change has highlighted the importance that GRESB places on continual improvement.

Another major change is the removal of intensities calculations, which will be a relief for many parties who have previously had to manually calculate these figures! 


EVORA are perfectly positioned to provide GRESB support after supporting 73 funds to submit to GRESB in 2019, including 25 funds located outside the UK. View our official Global 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 to see how we can help you.