Navigating the GRESB 2024 Updates: Key Changes and Implications

GRESB’s 2024 Real Estate Assessment introduced significant changes, refining how ESG performance is measured and reported. These updates aim to enhance differentiation among participants, reflecting evolving investor expectations for precise and meaningful sustainability metrics.

What’s New?
This year, GRESB introduced several updates:

Asset-Level Benchmarking: Scoring has shifted from a portfolio-wide perspective to a more granular asset-level approach, offering detailed insights but requiring greater precision in data collection.

Time Factors for Building Certifications: Certifications older than five years now carry reduced or no weight, encouraging participants to prioritise up-to-date standards.

Country-Specific Benchmarks: Scoring now compares assets within specific countries rather than broad regions, creating fairer assessments that reflect local conditions.

Impacts and Insights
The 2024 results have seen a slight decline in average scores, with Oceania reclaiming its position as a global leader in sustainability. However, the rise in new participants, particularly from Asia, signals a competitive future as these organisations improve their performance.

For participants, the introduction of time factors and asset-level benchmarking highlights the importance of maintaining robust certifications and focusing on individual asset improvements. These changes reward organisations that stay ahead of evolving standards while emphasising precise, quality data collection.

Looking Forward
As GRESB continues to refine its methodologies, staying informed and proactive is crucial. Organisations that anticipate and adapt to these changes will not only enhance their scores but also demonstrate leadership in ESG practices. For Australian participants, maintaining Oceania’s top position requires continued innovation and collaboration across the sector.

GRESB’s 2024 updates reflect a broader trend towards accountability, precision, and sustainability in real estate. By focusing on tangible improvements at the asset level, the industry can align with global priorities and continue driving meaningful progress.