GRESB NORDICS SEMINAR, 13.4.2015 ANNE KAISER

GRESB – SURVEY IN THE NORDICS

“…To get to a point where better

sustainability means better business. Talking

about sustainability only and not connecting

it to economic and social data will not

enhance its

“GRESB – survey visualizes connection

between sustainability work and progress to all

employees. It gives a new, concrete

meaning to sustainability work.”

“As an investor, I am not an expert in this field, but it would be naive to assume that GRESB is covering all aspects or issues of sustainability?!?”

“GRESB – survey “status” will be

required not only by investors, but also by

banks and creditors…”

#GRESBHELSINKI

• GRESB – survey serves real estate companies, funds and investors.

• Sustainability monitoring, benchmarking, improvement and communication.

• 42 basic questions, innovation case (and 14 questions, for new construction and major renovations).

• Management, disclosure, risks&opportunities, performance indicators, building certifications and stakeholder engagement.

• An overall score is allocated to each GRESB – survey participant with peer group comparison.

• Participation to GRESB – survey is free of charge.

GLOBAL REAL ESTATE SUSTAINABILITY BENCHMARK (GRESB)

• November 2014 – April 2015

• Interviews and Webropol on-line –surveys

• MSc in CSR and Ethical management (bfi Wien, Austria)

• Ramboll Finland Oy and Environmental School of Finland

THERE ARE NO STUPID QUESTIONS ?

Target group Responses Sample size Response rate

GRESB – pioneers 14 15 93 %

GRESB - potentials 17 70 24 %

GRESB – investors 7 33 21 %

Non-GRESB - investors 3 50 6 %

TOTAL 41 168 24 %

“Swedish real estate company operating in

Nordic countries”

”Real estate company or user/owner from Finland operating in

Nordic and Baltic countries.”

“Asset manager from Canada or Netherlands”

• “Multiple sustainability reporting”?

• Benefits of GRESB – survey?

• Does GRESB help to improve sustainability performance?

• GRESB and sustainability in value chain?

• Challenges and hints for starters?

• Development of GRESB- survey?

• Awareness and interest towards GRESB – survey?

RESEARCH AIMS TO UNDERSTAND…

MULTIPLE REPORTING ?

Most used sustainability reporting and assessing schemes are: GRESB, GRI, UNGC and CDP

GRI remains the most important reporting scheme for GRESB – potentials.

Companies, funds and investors using GRESB rank it

the most important.

GRI and GRESB have different scope, accessinibility and target audiences.

HOW MUCH TIME IS SPENT FOR REPORTING?

• Typical time between 80 and 160 hours. • GRESB- survey in 16 to 40 hours

• More than a month.

Some companies and funds don’t / can’t estimate the time dedicated for sustainability reporting.

BENEFITS GRESB – SURVEY OFFERS? The most used sustainability reporting and assessing

schemes are: GRESB, GRI, UNGC and CDP

Top three benefits for GRESB investors:

1. Improved transparency on sustainability 2. Easier implementation of own

sustainability objectives 3. Improved skills and knowledge of

sustainability analysis

Top three benefits for GRESB pioneers:

1. Communication and branding benefits 2. Improved credibility of sustainability

reporting 3. New ideas and practices for improving

sustainability performance

DOES GRESB – SURVEY HELP TO IMPROVE SUSTAINABILITY PERFORMANCE?

“As first indicators are created and monitored.”

”New ideas from peer group and survey itself.”

”It shows our strenghts and weaknesses; focus areas.”

”It visualizes connection between sustainability work and progress to all employees.”

”It pushes for structured management of sustainability and shows where the industry is heading to.”

”Improved transparency and communication with our investors.”

”It puts sustainability issues on the agenda of top management.”

”Engaging with companies not participating into GRESB – survey, with issues and ideas from GRESB, we improve overall sustainability performance of the portfolio.”

”New ideas we never before thought about.”

GRESB – SURVEY AND SUSTAINABILITY IN VALUE CHAIN

“Inspired to identify focus areas regarding stakeholders.”

“GRESB emphasises stakeholder

engagement.”

Most efficient means for integrating sustainability into value chain:

1. Communication 2. Setting common sustainability objectives 3. Developing incentives “win-win”

• Data collection and processing existing data into “GRESB” – format.

• Division of energy consumption between property types in multi-purpose properties = a lot of manual calculation and aggregation.

• Amount of data is challenging for small organizations or organizations with large number of properties.

• Some questions difficult to understand and without common clarification.

• Survey is very rigid and given data must be very exact.

CHALLENGES WITH GRESB - SURVEY

• First time reporting is a starting point in a process of continuous improvement, not as judgement of existing policies.

• Often there is no clarification for your questions, make your own conclusions, explain them and be consistent.

• Reserve enough time. Get familiar with the guidance.

• Commit top management and all the parties needed for reporting process.

• Share and publish your sustainability efforts; it makes it easier.

• Don’t overdo. Use what you have and build on that.

HINTS FOR STARTERS

• Better synergy with GRI G4 reporting would encourage more companies to participate.

• To be more open with access to overall scores

“introduction” tool for more companies to participate and make GRESB – survey more known.

• Possibility to notice “non-relevant” questions without influence on the overall score.

• Innovations should be simplified into “best practices” and obligatory for all participants = best practice library.

• Progress bar, “scoremeter” with estimate of the score to be reached..

DEVELOPMENT IDEAS FOR GRESB - SURVEY

• It will become key sustainability standard and tool for sustainability improvement.

• Growth by the number of users: investors, banks and creditors.

• Data analysis will develop => More unified questions and detailed level of reporting.

• Building level certification importance may grow in the future.

• It will expand and become harder to “digest” for investors.

HOW IS GRESB- SURVEY GOING TO DEVELOP IN COMING FIVE YEARS?

TOPICS FOR DISCUSSION

• Should GRESB emphasize more social responsibility issues?

• GRESB is not a reporting standard, it is a ranking scheme?

• Transparency, IR communication principles ? Other stakeholders?

• If companies don’t disclose GRESB benchmark information as recommended, should GRESB become more open itself?

• Should GRESB develop services for other audiences and stakeholders too?

SUMMARY

• GRESB - survey is considered very important sustainability ranking scheme by respondents, backed up by GRI reporting.

• GRESB - survey is material and practical framework which improves sustainability performance of companies, funds and investor members.

• Benchmark data with peer organizations directs sustainability efforts, helps in allocation of resources, brings sustainability on the top management agenda and connects companies with investors on sustainability issues.

• GRESB – survey participation requires dedication, time, resources and willingness to meet challenges.

• Sustainability itself is important for overall profitability and secures long-term value of properties.

GRESB - POTENTIALS 1. Benchmark information missing from sustainability

reporting frameworks 2. Benchmarking with peers is

believed to improve sustainability performance

GRESB - POTENTIALS

ANNE KAISER +358 400 289 933 ANNE.KAISER@RAMBOLL.FI

THANK YOU!