The Global Real Estate Sustainability Benchmark (GRESB) is the most reputable international real estate ESG performance evaluation organization, established from an investor’s perspective. Presently, there are 2,084 real estate entities globally participating in the evaluation, with 175 investment institutions using GRESB reports as a reference for monitoring investment performance and decision-making. Some notable institutions adopting GRESB include AEGON, J.P. Morgan, ING, SGX, Heitman, and UBS.
This year marked rapid growth for GRESB, especially in Asia, with a participation increase of 18%, surpassing the global participation growth rate of 15%. Taiwan saw an increase in participating companies from just one last year to ten this year, many of which achieved commendable results.
#Top-notch Real Estate Sustainability Assessment: Transparent, Quantifiable, Trustworthy, Peer Comparison
Compared to pre-pandemic 2019 figures, GRESB participants have doubled in recent years. This significant market acceptance owes not only to the rise of corporate ESG trends but also to GRESB’s inherent institutional characteristics, such as:
– Integration of significant international ESG evaluation frameworks like TCFD, SASB, CDP, ensuring ease of use for global investors.
– Provision of quantifiable scores allowing companies to compare ESG performance more accurately against peers, facilitating precise and ongoing ESG strategy formulation and improvement goals.
– GRESB serves as a vital reference for “green finance.” With global climate change and the 2050 net-zero carbon emission goal, investors are more inclined to invest or offer sustainable-linked loans to real estate developers who undergo GRESB evaluation.
Trey Archer, GRESB’s Director of Asia-Pacific Business Development, emphasized during this interview that participation in GRESB is “profitable.” Although there are initial costs associated with ESG transformation, these investments offer long-term benefits rather than mere cost expenses. Seeking professional consultants’ assistance and efficient solutions significantly reduces the risk of building damage, enhancing investors’ willingness to invest. In the long run, this investment is definitely worth an early commitment. Compared to other ESG assessment systems, GRESB’s scoring criteria and processes are more transparent, allowing participants to adjust strategies yearly for improved ESG performance.
Actively embracing ESG practices, KINDOM DEVELOPMENT expressed pride in receiving the GRESB Outstanding Achievement award for its first participation this year. Throughout the process, with the professional assistance of SSDC, the company meticulously reviewed nearly 500 assessment items and standards.
GRESB doesn’t assess individual buildings or development projects but instead focuses on the overall sustainability of real estate enterprises. This holistic approach provides a comprehensive understanding of whether a company’s operations align with sustainable standards, making it particularly significant for listed construction firms and property management companies with multiple assets.
Given the increasing scale and prevalence of complex projects, KINDOM DEVELOPMENT intends to continue participating in GRESB assessments. This involvement will aid in more effectively planning finances, managing costs, and mitigating risks, furthering the development of sustainable cities and delivering the value of a fulfilling life.
#Fostering Asia as an ESG Investment Haven
According to GRESB statistics, Japan, with 135 participants, China with 50, and India ranked third. Japan has long required companies to disclose ESG reports, prompting investors to set more stringent ESG standards for investment projects. Hence, GRESB naturally became a popular choice within the real estate industry.
Taiwan’s ESG regulations started relatively late. Companies listed with a capital of over NT$2 billion are required to disclose sustainable reports starting in 2023, while other listed companies should do so from 2025. This year, financial and insurance companies like E.SUN Bank, Cathay Life, and construction companies such as KINDOM DEVELOPMENT, BAOPU DEVELOPMENT, HI-YES CORP., JUT LAND DEVELOPMENT, Yuu-Lynn Construction, Core Pacific Development, and YUN JIANG joined the GRESB evaluation. GRESB actively strives to become the basis for Taiwan’s local bank’s green finance and sustainable-linked loans. There will soon be more progress to share. For small and medium-sized enterprises seeking foreign investment or with export demands, publicly disclosed, quantifiable, and globally credible ESG assessment reports can help improve their cash flow. As an integral part of the global trading system, companies of all sizes, including individuals, cannot be left out.
Trey Archer envisions Asia as the primary market for GRESB’s future expansion. In addition to the Real Estate Assessment, GRESB also offers Infrastructure Asset Assessment, providing investors with more ESG information on different types of real estate. They will continue developing assessment systems tailored to different needs. Moreover, starting in 2024, GRESB AP (Accredited Professional) programs will be initiated, training and expanding a pool of GRESB professionals based on the GRESB platform to enhance environmental sustainability.
▲Trey Archer elaborated on the value of engaging with GRESB and the significance of corporate ESG.
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