| | Regulatory frameworks like GRESB and PRI are expanding, meaning investors are evaluating your organization not just on what you report, but how well your disclosures reflect governance discipline, risk management, and operational performance. To obtain top submission scores for these frameworks, companies need to earn points others miss and out-perform average scorers.
As ESG disclosure requirements continue to expand across markets, your organization must develop integrated strategies that strengthen governance, protect investments, and enhance long-term resilience — and Verdani can help. Through our strategic advisory, regulatory intelligence, and performance-driven reporting, Verdani supports clients in translating evolving requirements into structured, decision-ready performance, turning disclosure into a tool for portfolio resilience and measurable business value.
In this edition of Verdani Vitals, discover how voluntary reporting frameworks (including GRESB and PRI) and global regulations are reshaping responsible investment and real estate performance. |
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| GRESB outcomes are rarely determined by participation alone; across the portfolios we work with, the gap between average and top-tier performance comes down to how effectively organizations translate strategy into measurable, well-documented action. Companies that partner with Verdani can make informed decisions on what actions to take to earn points others easily miss out on and avoid pitfalls in the increasingly competitive framework.
With the GRESB portal opening April 1st, the focus is shifting from preparation to execution. Even sophisticated teams consistently leave points on the table in a few critical areas — knowing where to concentrate effort in the weeks ahead makes a meaningful difference. |
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| | Target Credibility and Progress Tracking Scorers look for clear linkages between baseline performance, defined reduction pathways, and demonstrated progress over time. Targets that exist without traceable momentum don't hold up under scrutiny. |
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| | | Climate Risk Integration It's no longer sufficient to identify physical and transition risks. Submissions that score well show evidence of how those risks are assessed and, critically, how their potential financial impact on assets and portfolios is quantified. |
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| | | Data Completeness and Evidence Quality Provide robust supporting documentation, consistent methodologies, and audit-ready data across assets. Gaps here are among the most common and most preventable sources of lost points. |
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| | | Emerging Performance Areas Embodied carbon measurement, lifecycle analysis, and expanded social metrics are no longer peripheral. Expectations are rising faster than most implementation timelines, which the scoring reflects. |
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| | | Alignment Between Strategy and Execution Stated commitments need implementation at the asset level. Scorers are looking for internal processes and cross-team coordination that make the connection between policy and practice visible and consistent. |
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| As GRESB grows more competitive, incremental improvements in these areas carry real weight — influencing peer group rankings and shaping how investors read a portfolio's maturity. Verdani's focus is on identifying where targeted effort delivers the greatest return: actions that strengthen scoring outcomes and underlying portfolio performance at the same time.
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| Strategies Owners Should Focus on in 2026 |
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| Allocate resources to improving asset-level performance; increasing data coverage across energy, GHG emissions, water, and waste; and attaining green building certifications and ratings. Prioritize higher-weight 2026 indicators like Net Zero Targets and Embodied Carbon. Maintain consistent data reporting, accounting for updated estimation rules, accurate ownership periods, and emissions scope categories.
Due to GRESB’s wide usage across the industry, strong performances can generate economic advantages, as many large investors consider GRESB scores when allocating capital. Similarly, institutional investors may use ESG benchmarks to price loans and to assess portfolio value and longevity. Verdani has a proven track record of year-over-year increases in GRESB scores, with clients averaging 4% increases since working with us, well-positioning them to take advantage of these opportunities. |
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| The Principles for Responsible Investment (PRI) framework represents the global standard for transparent responsible investment practices. An impressive PRI score strengthens LP (limited partner) confidence during due diligence and reinforces governance credibility during fundraising cycles, signaling maturity to competitive capital markets and proving the framework as a worthwhile investment.
Verdani helps our clients excel with structural and implementation best practices that are rewarded through the scoring process. The following insights give a high-level overview of the differentiators for top-performing PRI submissions. Contact us for details on the strategies that help our clients rank as top PRI performers. |
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| | Verdani’s Tips for Top PRI Performers |
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| Embed ESG integration across the investment process Deliver evidence that ESG considerations influence portfolio construction, risk management, and investment approvals. |
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| Indicate high AUM coverage of responsible investment practices Demonstrate firm-wide ESG integration across most or all AUM. A lot of firms with average scores can only point to processes for partial or select funds or strategies. |
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Demonstrate mature governance and signal institutional commitment Develop internal training and capacity building programs. Integrate ESG into incentives or performance evaluation. |
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Highlight robust stewardship and engaged ownership practices Define voting and governance policies linked to ESG priorities. Track engagement outcomes, not just activities. |
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Develop clear timelines, achievable targets, and tangible outcomes Establish time-bound ESG objectives with metrics to indicate progress. Showcase year-over-year improvements. |
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Demonstrate credibility and data transparency Conduct internal audits of responsible investment process. Involve independent third-party assurance. |
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| By implementing these best practices and other Verdani guidance, our clients achieve exceptional PRI results. |
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| The volume of global disclosure requirements continues to grow, but not all regulations carry equal weight. For real estate investors and operators, the priority is no longer tracking every rule — it's understanding where exposure exists and where action is required.
Verdani translates regulatory complexity into clear decision pathways: what to act on now, what to monitor, and how to align disclosures across jurisdictions without creating an unnecessary burden on operations.
Where to Focus in 2026California Climate Laws (SB 253 & SB 261*): Immediate priority for companies operating in California. Requires emissions disclosure, climate risk assessment, and governance alignment beginning in 2026. SEC Marketing Rule: Direct implications for how sustainability claims are communicated. Misalignment between disclosures and marketing language creates enforcement and reputational risk. SFDR & EU Taxonomy: Critical for firms with European exposure. These rules govern how sustainability risks and activities are classified, disclosed, and evaluated by investors. Building Performance Standards (U.S.) & Minimum Energy Performance Standards (EU): Tied directly to asset-level performance. Non-compliance can trigger penalties, capital expenditure requirements, and reduced asset competitiveness. California AB 1305: Requires substantiation of emissions-related claims, increasing scrutiny on voluntary disclosures and public statements.
*Pending the outcome of ongoing litigation.
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| What This Means for Your Portfolio |
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| Three priorities consistently emerge across these regulations: Data Readiness: Emissions, performance, and risk data must be complete, consistent, and defensible. Governance Alignment: Oversight, accountability, and documentation must be clearly established. Disclosure Consistency: Regulatory filings, voluntary reporting, and marketing communications must align to avoid exposure.
Organizations that take a structured approach now can reduce compliance risk, avoid reactive costs, and strengthen investor-facing credibility. Verdani designs programs that connect regulatory requirements to day-to-day portfolio operations, ensuring compliance efforts also drive performance, risk reduction, and long-term value protection. |
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| California’s new climate disclosure laws introduce immediate implications for companies operating in the state. Beginning in 2026, covered organizations must disclose greenhouse gas emissions and climate-related financial risks with a level of rigor that is subject to external scrutiny and assurance.
For many firms, this is not just a reporting exercise but a data, governance, and risk management challenge that will require coordination across teams, systems, and leadership.
Action now creates a clear advantage: organizations that build reliable data systems and align governance structures before its too late avoid the cost and disruption of last-minute compliance (and missed deadline penalties). Those that delay risk gaps in disclosures, increased costs, and potential exposure under public and investor review. |
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| | SB 253: GHG Emissions Reporting |
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| Verdani supports organizations in establishing reliable, audit-ready emissions reporting programs that align with California requirements. Our services include: Assessing applicability and defining governance structures to support ongoing compliance Developing scalable emissions tracking across scope 1, 2, and future scope 3 requirements Strengthening data systems and controls to ensure accuracy, consistency, and defensibility Preparing disclosures aligned with CARB guidance and supporting third-party assurance readiness
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| | SB 261: Climate Financial Risk Reporting |
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| Verdani helps clients translate climate risk requirements into structured, decision-relevant disclosures that align with leading frameworks and investor expectations: Evaluating climate-related risks through materiality assessments and peer benchmarking Aligning existing programs with TCFD and IFRS S2 disclosure expectations. Identifying and quantifying physical and transition risks at the portfolio level Integrating climate risk into governance, strategy, and investment decision-making Supporting the development of clear, compliant public disclosures
With reporting deadlines approaching, early action reduces compliance risk, avoids reactive costs, and strengthens organizational resilience. Disclosure is no longer a standalone exercise; as such, organizations that integrate regulatory requirements with PRI, GRESB, and broader portfolio strategy are better positioned to strengthen investor confidence, reduce exposure, and support long-term value. |
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| | | Verdani Partners brings more than 25 years of sustainability expertise, guiding nearly two billion square feet of global real estate. We help clients translate ESG commitments into measurable action through strategy, decarbonization, performance improvement, compliance readiness, and strategic communications. |
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