Global ESG benchmarking firm GRESB has launched two new products to help asset managers with their efforts to decarbonise and achieve sustainability-linked targets.
The first is the GRESB Transition Risk Report, which shows real estate portfolio managers which of their assets are most exposed to climate-related transition risk and how this may affect their portfolio over time, both at a country and global level.
The report draws on asset data already provided through the annual GRESB Real Estate Assessment, benchmarking the data against CRREM’s science-based decarbonisation pathways. Where needed, the report also makes use of GRESB’s Asset Estimation Model to provide portfolio managers with highly accurate estimations of GHG emissions.
‘Today, 25% of global real estate is already facing transition risk,’ said Sebastien Roussotte, CEO of GRESB. ‘As this number rises each year and portfolios are placed under increasing pressure to decarbonise, it’s vital that asset managers have the tools and insights necessary to navigate these risks and to take appropriate action. Because these reports are generated from data already provided through the assessment, there is no need for additional data collection efforts.’
The other new product is the GRESB TCFD Alignment Report, which helps asset managers tackle reporting challenges related to the Task Force on Climate-related Financial Disclosures (TCFD). It applies to both real estate and infrastructure asset and fund managers.
The TCFD’s final recommendations that were introduced in 2017 as voluntary measures are quickly becoming integrated into regulatory frameworks across the globe, GRESB said. According to the firm’s most recent data, less than 20% of all organisations that participate in GRESB assessments have all of the necessary processes, strategies and data collections systems in place to satisfy TCFD.
Pulling together relevant information already provided to GRESB through the yearly assessments, the TCFD Alignment Report shows an entity how aligned it is to TCFD requirements and provides a clear foundation to develop necessary TCFD processes and reporting efforts.
‘The majority of organizations are not yet ready for TCFD and still need to translate strategies into risk management processes,’ added Roussotte. ‘Just by participating in GRESB assessments, organisations have already taken the first steps towards TCFD disclosures. Without any additional reporting needing to be done, GRESB members can see where they stand in relation to TCFD, helping them fulfill regulatory requirements at a very competitive price.’
