Global Investors Push for Participation in GRESB as ‘Common Language’ for ESG Across APAC

For the third consecutive year, a group of global investors is collaborating in the APAC region on coordinated engagements with the real asset industry to strengthen dialogue on both ESG disclosures and net-zero strategies as well as to make GRESB (the real estate sustainability benchmark), the ‘common language’ for conversations with investee companies on material sustainability topics.

Established in 2009, GRESB has become the leading ESG benchmark for real estate and infrastructure investments across the world, used by 170 institutional and financial investors to inform decision-making.

This year’s initiative will focus on encouraging listed real estate companies and REITs to make ESG disclosures in line with the GRESB Standards via participation in the annual GRESB benchmarks.

This deepening focus on standardized ESG disclosures and comparable ESG scores is reflected in the most recent end-of-year survey of global GRESB investor members, which found that 70% of those surveyed believe GRESB will be the platform that investees will use to report on their ‘Task Force on Climate-related Financial Disclosures’ (TCFD) alignment and related disclosures, in addition to their core ESG management practices and performance.

TCFD is becoming increasingly relevant in Asia as more regulatory bodies align their disclosures to the global frameworks. By engaging through GRESB – the common language for ESG disclosures across the globe – investors have a consistent lens through which to track climate-related disclosures and risk management practices over time and to drive improvements where needed.

The 2023 collaborative effort is driven by 18 institutional investors representing US$8.1 trillion of assets under management.

“Sustainability considerations are increasingly important in managing risks and creating value in real estate portfolios. GRESB participation provides stakeholders important insights on how management teams are addressing these factors and positioning real estate portfolios for the future,” said Michael Shoemacher Director, Real Estate Securities, Brookfield Asset Management.

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