The 2022 Global Real Estate Sustainability Benchmark (GRESB) assessment results, rankings, and benchmarks saw the largest ever growth in total numbers, with 1820 entities now participating worldwide.
Several Australian property companies ranked number one across benchmark categories for the 12th consecutive year.
GRESB, the investor-driven independent organisation providing validated environmental, social governance (ESG) performance data and benchmarks, is an important benchmark for investors to monitor investments and understand portfolio performance across ESG principles.
This year coverage has expanded to include $13.62 trillion in real estate and infrastructure value worldwide – including over 700 infrastructure funds and assets, which represents $10.27 trillion in real asset value combined.
Oceania leads the way in the results, with the highest regional average score of 82 in the Standing Benchmark and 88 in the Development Benchmark.
There were slight reductions in performance improvement scores in energy, GHG emissions, water and waste reductions, due to portfolios returning to pre-pandemic state of operations.
GRESB chief executive Sebastien Roussotte said participation is strong and the real estate benchmark grew by 20 per cent in 2022.
“Looking at this year’s benchmark, the industry’s embrace of ESG continues to be reflected in our strong participation numbers and increased data coverage, signalling that real assets investors and managers alike remain steadfast in their commitment to sustainability.
“We are proud to see the real estate industry deepen its commitment to ESG transparency and sustainability and lead the way in creating a more sustainable future for all.”
Green Building Council of Australia chief executive Davina Rooney said Australian companies continue to perform well in sustainability.
“Eliminating emissions from the built environment will require a lot of heavy lifting from our entire industry. In Australia we’re seeing a lot of big and small players in our industry take great strides toward the goal of a healthier, net zero future.”
- View the full results here: click here.
Here are some highlights.
Dexus entities rank in top 2 per cent globally
Real estate investment company Dexus achieved 5 Stars with two entities named as Global Sector Leaders and three ranked in the top percentile.
The $44.3 billion real estate investment trust was named a leader with its office trust and healthcare property fund listed as global sector leaders.
Dexus directly owns $18.4 billion of office, industrial and healthcare properties across Australia. The new rating has placed the company’s portfolios in the top 20 per cent of all GRESB participants globally.
Its office partnership, its office trust, and its wholesale property fund, were ranked in the top 2 per cent of GRESB globally.
Dexus chief executive, Darren Steinberg said the win was due to the company’s strong ESG strategy which he said has contributed to positive returns for investors.
“We are pleased that we have achieved year-on-year improvement in the GRESB results globally.”
Chief operating officer Melanie Bourke said the company’s sustainability performance was a key driver in delivering value for its investors, customers and employees.
“Our ongoing focus on strong governance, stakeholder engagement and optimisation of our environmental performance is reflected in our GRESB results.”
Frasers property placed in top 20 per cent
Frasers Property Australia and Frasers Property Industrial ranked strongly, with all portfolios maintaining 5 Star ratings – putting it among the top 20 per cent of organisations which report to GRESB.
Frasers Property Industrial’s standing investments in Australia were recognised as regional sector leaders, for Oceania and Frasers Logistics and Commercial Trust’s portfolio came in second position for the Diversified – Office/Industrial category in Asia-Pacific. Frasers Property Industrial’s development assets ranked first among industrial warehouse peers in Australia.
Reini Otter, chief executive officer for Frasers Property Industrial said the rankings were the result of sustainability data systems implementation.
“The Frasers Property Industrial team has worked diligently over the past year to incorporate innovative designs, technologies and systems to enhance sustainability across the business,” he said.
“A large focus for this has been enhanced sustainability data capabilities and coverage, with partnership and collaboration with our customers instrumental in this process.
“The industrial property sector as a whole is placing growing emphasis on sustainability, and we will continue to work with customers and the wider industry to move the sector forward, ultimately creating better outcomes for the planet, people and businesses.”
Early this year the property company secured a combined $600 million sustainability linked term loan and revolving credit facility, which lifted its Australian proportion of total green corporate facilities to 86 per cent.
Scenter Group receives 5 Stars
Scentre Group was also recognised as a global leader with a 5 Star rating, putting it in the top 20 per cent as well.
The group achieved a yearly improvement across the development and standing investments benchmarks, and remained a sector leader for retail in the development benchmark in Oceania.
The company has reduced emissions by 30 per cent since 2014, and recently announced an agreement with CleanCo to source renewable electricity for its Queensland portfolio of Westfield Living Centres from 2025.
Scentre Group chief executive Elliott Rusanow said the ranking was thanks to the business’s responsible business strategy.
“Participation in GRESB supports our ongoing focus on improving transparency and disclosure… It also helps us benchmark our performance against global peers and inform our strategy and initiatives.
“We’re focused on improving environmental performance and have started work on an integrated environmental plan to address waste, and water as well as continued energy efficiency initiatives. This includes better understanding how the group can support its business partners in achieving their own environmental targets.”