By Amanda Howard – ESG Manager
Sustainable Investment Group (SIG)
Every year, the Global Real Estate Sustainability Benchmark (GRESB) evolves, pushing the envelope on what it means to be sustainable in real estate. As we approach 2025, GRESB is introducing subtle yet pivotal changes that will affect how participants manage and report their sustainability practices. Here’s a breakdown of the upcoming 2025 GRESB Real Estate Standard changes and its potential impacts on your sustainability strategy.
Understanding the Scoring Adjustments for 2025
For 2025, GRESB is rolling out scoring adjustments that are relatively minor yet strategically important, providing stability as well as new opportunities:
Energy Efficiency Spotlight
A significant update in 2025 is the introduction of a new energy efficiency score. This will enable assets that consistently demonstrate high efficiency to gain recognition, regardless of year-on-year improvements. Assets not considered to be highly efficient will continue using the like-for-like scoring. This change ensures that highly efficient buildings are rewarded for their performance, even if they do not achieve year-over-year improvements.
Refining Employee Safety Metrics
Another notable change is in the Employee Safety indicator (SE4). The scoring for this indicator will be redistributed equally across its four components: workstation checks, absentee rates, injury rates, and lost day rates. Each will now carry a weight of 0.25 points, making the evaluation process more balanced and comprehensive.
Expanded Reporting for Enhanced Transparency
The 2025 framework will deepen the focus on the quality and clarity of sustainability reporting:
Renewable Energy Reporting Enhancements
GRESB is refining the Energy (EN1) indicator to better capture and distinguish the nuances of renewable energy procurement practices. Expect to detail the type, source, proximity, and characteristics of procured renewable energy, aligning with the stringent RE100 guidelines. This will enhance the transparency of your renewable initiatives.
New Focus on Embodied Carbon Reporting
Addressing a rapidly rising area of concern, GRESB will pilot a new criterion focused on embodied carbon. This will affect how developments report on carbon emissions related to new constructions and major renovations, emphasizing tenant fit-outs, green leasing agreements, and asset-level carbon risk assessments. While these additions won’t affect scoring in 2025, they are anticipated to have a significant scoring impact in 2026, ranging from -8 to 0 points for Development and -2 to +2 points for Performance.
Introducing Biodiversity and Nature Metrics
Reflecting a growing recognition of the real estate sector’s impact on nature, a new biodiversity indicator will emerge in 2025. Based on the Taskforce for Nature-related Financial Disclosures (TNFD) framework, this metric will require narratives that explain how real estate strategies align with ecological goals and responsibilities. This indicator will not be scored in 2025, giving participants time to adapt.
Residential Supplemental Report
A significant addition in 2025 is the Residential Supplemental Report, designed specifically for the residential real estate sector. This report aims to fill the gaps in the standard framework, which has predominantly focused on commercial properties. It will cover key areas like affordable housing and community safety, providing a tailored assessment that reflects the unique challenges and opportunities in residential real estate.
Prepping for Future Evolution
Looking beyond 2025, GRESB is setting the stage for more comprehensive changes that will continue to raise the bar for sustainability in real estate:
Stricter Validation for Net Zero Claims
In an effort to bolster credibility, any claims of meeting Net Zero targets from 2025 onward will need to be backed by robust evidence. This is aimed at providing investors with more confidence in the sustainability claims made by firms.
Phasing Out Older Indicators
Certain outdated indicators will be retired starting in 2026, making way for more relevant metrics that better align with current and future sustainability challenges. These indicators will still be scored in 2025, with simulated scores provided for 2026 before their full removal. As part of these changes, GRESB has also shared updated scoring weight projections for 2026, allowing participants an additional year to prepare for the transition. See the planned changes below:
Evolving Building Certification Standards
GRESB will also enhance the criteria for recognized building certifications to ensure they keep pace with best practices in sustainability. For 2025 and 2026, participants will continue to report under the current criteria, with no changes to how certifications are scored during this period. Starting in 2027, however, an updated list of recognized building certifications will take effect.
To help participants understand these updates, GRESB has provided an Impact Analysis Table outlining potential scoring impacts and requirements for each change. This resource offers valuable insights for planning and prioritization.
For more information about these changes, please see the official GRESB Real Estate Standards 2025 Updates.
Resources:
*This blog references insights from GRESB. Charts and data are used for informational purposes to support our analysis. For the full updates, visit GRESB’s website
Amanda Howard, ESG Manager at Sustainable Investment Group (SIG), has been with the team since 2021, playing a vital role in leading ESG surveys and frameworks, including GRESB, CDP, GRI, and SASB. Amanda’s expertise extends to managing over 2.5 million square feet of sustainable building projects, achieving certifications like LEED, Fitwel, and WELL for her clients. Drawing on her experience in both green building and ESG consulting, Amanda offers comprehensive project management support at both the property and corporate levels.
Reach out to Amanda here.
Credentials: LEED AP ID+C, Fitwel Ambassador, GRI Certified Sustainability Professional
Atlanta, GA
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