The Global Real Estate Sustainability Benchmark (GRESB) has officially announced scores for the 2016 reporting season. Verdani Partners is proud to see our clients continue to improve and set themselves apart as leading organizations on Environmental Social Governance (ESG) initiatives. Firms such as CommonWealth Partners, Parkway Properties, Clarion Partners, Colony NorthStar, Jamestown Properties, American Realty Advisors, and GID continue to improve their ESG performance results with Verdani’s ongoing, in-house support.
This year, 850 property companies, REITS, funds and developers reported to GRESB, a 12% increase from 2016. This data reflects the fact that GRESB is rapidly gaining traction among stakeholders and participants are constantly improving across all aspects of ESG performance.
With increased participation and more competition, Verdani is thrilled to announce our clients’ results. Their ambitious goals and strategies to reduce energy and water use, carbon emissions, and waste place them among other top organizations that are leading the way on sustainable real estate strategies that create long-term value for their organizations.
This year, Verdani submitted 11 GRESB assessments on behalf of 8 large real estate portfolios. Of those 11, 9 scored in the top 10 with 8 of those in the top 5 for their respective peer groups.
Notable Highlights
Clarion Partners’ LIT fund received 1st place in the Industrial United States, non-listed, indirectly managed peer group for the second time.
GID received 4th place in the US Residential, non-listed peer group and 7th for their first-year reporting to GRESB
One fund made a significant 63% improvement in its GRESB Score
CommonWealth Partners and Jamestown, on behalf of their Premier fund, earned 3rd place in their respective peer groups
Parkway placed in the top 5 for its peer group for the third year in a row
This year’s unprecedented GRESB participation and impressive results reinforce the industry’s need to continue implementing programs that address key industry drivers such as investor push for transparency, tenant demand, regulatory requirements, and operational savings. These initiatives are directly associated with value creation while minimizing the buildings environmental impact and creating healthier places to live and work.
In 2016, CommonWealth Partners achieved its 20% energy and carbon reduction targets 3 years early which was a great testament to the success of our collaborative efforts and sustainability programs. Verdani has been managing CommonWealth Partners’ sustainability programs since 2003 and with our support they have ranked 3rd in the GRESB Office Sector category in 2017. Verdani Partners has assisted with maintaining or achieving LEED certification for 85% of CommonWealth Partners’ portfolio and with benchmarking 96.33% into ENERGY STAR Portfolio Manager. The reductions in portfolio wide energy consumption have a direct impact on CommonWealth Partners’ operating expenses and value creation. We would not have achieved these numbers without a common goal of environmental leadership.
More real estate investment trusts (REITs) and asset managers are disclosing their non-financial ESG performance this year than ever before. Growing demands for more sustainable business practices and transparency from investors, tenants, and other stakeholders have fueled the adoption of comprehensive corporate ESG policies and programs across the industry. According to a Carbon War Room commissioned study, U.S. REITs with higher GRESB ratings deliver higher returns per unit of risk. Similarly, an INREV study also showed a 2.8% return spread between the top 10% and bottom 10% of European non-listed GRESB entities. These and many other studies show that GRESB participation is associated with higher financial performance. As investors further recognize the connection between ESG and financial performance, they will continue to put pressure on ESG disclosure.
We are honored to work with such forward-thinking firms and proud of all they have accomplished. Verdani helps to set our clients up for success by working closely with their operation teams to implement key ESG best management practices and creating a robust environmental management system to foster high-performing portfolios. These strategies are complementary to the GRESB scoring categories and in line with investor demands.
Read below a few testimonials regarding their experiences collaborating with the Verdani team to support their ESG programs, GRESB disclosure, annual sustainability reports, and ongoing performance journey!
2016 SUSTAINABILITY REPORTS AND TESTIMONIALS
Commonwealth Partners
“We are extremely proud to have achieved our 10-year energy reduction target 3 years early! Verdani Partners has been instrumental in working with our properties and employees to elevate sustainability efforts of our core business, enabling us to achieve our goals and ultimately position us as an industry leader in sustainability.”
– Kirsten Quezambra, Vice President, Commonwealth Partners
Parkway Green
“It has been a great experience working with Verdani Partners. By leveraging Verdani’s skills, knowledge, and resources, Jamestown identified a utility automation partner, plans to submit 7 LEED applications, and reported to both UNPRI and GRESB in 2017.”
- Rebecca Rushin, Vice President of Sustainability, Jamestown
Clarion Partners
“As this year was GID’s first time reporting to GRESB, we are grateful to have had the guidance and expertise of the Verdani team. We are highly impressed with Verdani’s dedication to greening our portfolio and proud of all we have accomplished together, including the release of our first Annual Sustainability Report.”
- Matt Bernstein, Asset Manager, GID
American Realty Advisors
Colony NorthStar
GID Sustainability
ABOUT GRESB
GRESB is an industry-driven organization committed to assessing the sustainability performance of real estate portfolios (public, private, and direct) around the globe. More than 100 investor members representing nearly US $9 trillion in assets under management use GRESB results to optimize the risk-return profile of their real estate investments. The dynamic benchmark is used by institutional investors to engage with their investments with the aim to improve the sustainability performance of their investment portfolio, and the global property sector at large.