ESG Benchmark for Real Estate, Infrastructure Grows to $8.8T
GRESB, the global environmental, social, and governance (ESG) benchmark for real estate and infrastructure investments, announced the results of its 2023 Assessments, which grew to 2,084 real estate portfolios, 172 infrastructure funds, and 687 assets totaling $8.8 trillion in gross asset value (GAV).
According to the assessment, growth was especially robust in Oceania and Asia, while areas such as Europe and the Americas maintained moderate growth rates. The United States had the most newest participants, increasing to 433 from 380.
In terms of net-zero policies, 72% of global real estate participants have one in place, with 93% of participants in Oceania reporting one, followed by 78% and 77% in Asia and Europe, respectively.
Even though most participants claim a net-zero policy, just 56% of global participants have made a public commitment and 50% have set a net-zero target.
Oceania and the Americas experienced the most rapid expansion in infrastructure, with 10% and 11% year-over-year gains in participation, respectively. With over 350 assets, EMEA is the largest represented region in the benchmark.
According to the assessment, 60% of global infrastructure assets will have a net-zero policy in 2023 with Oceania and Europe leading the way, with 65% of participants in both regions having a net-zero strategy.
Although just 40% of global assets have disclosed commitments, 60% have already established net-zero ambitions.
At the fund level, 68% have a net-zero strategy in place, 70% have shared net-zero commitments, and 60% have established net-zero targets.
“Net zero in real assets is not merely a goal but a necessity. It requires a collective commitment to reduce carbon footprints and drive sustainability in the built environment,” said Sebastien Roussotte, CEO at GRESB.
GRESB, headquartered in Amsterdam, conducts annual voluntary assessments of real estate portfolios, real estate debt providers, and infrastructure funds and assets. It assigns a score to each firm, asset, and fund based on the information gleaned from the ESG assessments.