ESG in real estate: how data coverage drives performance and credibility

The focus of capital market professionals is increasingly shifting toward ESG (Environmental, Social, and Governance). A clear reflection of this trend is the expansion of GRESB’s Real Estate Assessment. In 2025, more than 2,300 entities participated globally, representing a 15% increase compared to the previous year.¹

The data collected and analyzed for this assessment serve as a critical foundation for investors seeking to evaluate and benchmark the performance of funds and assets based on the most relevant non-financial indicators.

Evolution is not only quantitative but also qualitative. For example, in Brazil, funds participating in GRESB’s annual Real Estate Assessment have been delivering increasingly consistent results. Participants in the Standing Investments benchmark, which covers operational assets, achieved an average score of 79 points, an improvement of 3.1 points compared to 2024. Meanwhile, participants in the Development benchmark, focused on projects under construction or development, recorded an average of 87.9 points, an increase of 2.1 points compared to the previous year.²

These results reflect the adoption of robust strategies, solid commitments, and increasingly consistent practices. Above all, they demonstrate the effectiveness of initiatives designed to expand data coverage.

Environmental data coverage is the key element that ensures credibility, comparability, and accuracy of reported information. Companies that invest in robust data systems not only improve the quality and governance of their data but also strengthen their position and institutional reputation in the market.

Data coverage is directly linked to the scope and depth of the information collected across the organization. This coverage typically encompasses an organization’s assets and operations related to environmental issues, such as energy use, greenhouse gas emissions, water management, and waste management. The greater the scope and level of detail, the more representative and reliable the reported data become, enabling a more accurate view of organizational performance and its impacts.

Beyond its direct influence on evaluation, data associated with asset or portfolio coverage provides a series of strategic advantages, including:

• Credibility and transparency—The proportion of assets and indicators substantiated by empirical data, rather than estimates, directly enhances the robustness and reliability of reporting. Portfolios supported by comprehensive datasets demonstrate greater maturity in environmental and social management systems, thereby strengthening institutional credibility with stakeholders.
• Accurate benchmarking—Enhances the ability to compare performance across companies, funds, and regions, as all reporting is based on consistent metrics.
• Mitigation of reporting risks—The availability of complete datasets reduces reliance on estimates, minimizes inconsistencies, and decreases vulnerabilities in audit processes.
• Support for strategic decision-making—Strong data coverage enables the identification of high-risk assets, efficiency opportunities, and replicable practices across the portfolio.

The expansion of data coverage faces multiple challenges that can compromise the consistency and reliability of reporting. One of the main obstacles is the fragmentation of collection systems, which often operate in isolation and hinder the integration of information into a single, cohesive view. In the real estate market, for example, there is a wide variety of documentation, as each region or municipality is served by a different utility provider. Furthermore, building systems may vary significantly, requiring distinct inputs or data entries.

At the same time, inconsistencies in data quality may occur due to a lack of standardization in recording methods or the absence of clear validation criteria. Another critical issue is scalability, particularly in extensive portfolios, where the number and diversity of assets make it difficult to preserve depth and consistency in data collection and operational routines.

Expanding coverage therefore requires overcoming structural barriers to safeguard the robustness and credibility of the results.

As a GRESB Partner and Brazil’s leading consultancy in sustainability, CTE relies on consistent processes and cutting-edge technology to ensure an efficient and error-free reporting process, from data collection to results analysis.

In 2025, 18 funds and portfolios reported data to the GRESB Real Estate Assessment in Brazil. Of this total, 90% were supported by CTE’s consultancy, representing more than USD 7.5 billion in Gross Asset Value (GAV). In the past year, CTE monitored more than 190 assets across at least seven sectors: residential, office, industrial, retail, mixed-use, hospitality, and education.

Such experience enables CTE to recognize the importance of carrying out three actions simultaneously when the objective is to increase data coverage:

• Providing high-level training for teams responsible for data collection and validation
• Conducting periodic internal audits to ensure consistency
• Engaging company departments and asset managers to secure data in the required format and timeframe

For the collection and analysis of data, CTE integrates artificial intelligence and process automation. In parallel, it has systematically incorporated information from the Data Management System (DMS) into operational and management routines. This tool, which supports the presentation and monitoring of key performance indicators, enables the tracking of individual asset performance in the areas of energy, water, and solid waste, while also allowing portfolio-wide comparisons. As a result, variations relative to previous periods can be identified more quickly, especially in energy and water consumption.

It is therefore essential to move beyond data collection and reporting and to use the insights to drive daily performance and inform strategies aimed at maximizing efficiency and fostering continuous improvement. Reports with continuous and granular data enable the identification of efficiency patterns, anomalies, and opportunities for improvement, while also reducing the risk of inconsistencies in benchmarking.

The outcome of this approach is a data coverage level that exceeds the global average in the categories of energy, greenhouse gas emissions, water, and waste, as shown in the consolidated 2025 dataset below:

Data coverage is more than a technical requirement. It is a strategic differentiator. Companies that prioritize comprehensive and reliable data collection strengthen their position in GRESB rankings, demonstrate sustainability leadership, and gain a competitive edge in attracting investors.

However, the impact extends beyond benchmark performance. The ability to consistently collect, integrate, and analyze information enhances corporate governance, increases transparency for stakeholders, and establishes a solid foundation for long-term strategic decision-making.

Expanding data coverage means investing in credibility, resilience, and innovation. It reflects the understanding that sustainability is not limited to stated commitments but is realized through verifiable metrics and tangible results. Organizations that successfully align technology, processes, and corporate culture around this objective will be better positioned to lead the transition toward a capital market increasingly driven by ESG principles.

(1 and 2) GRESB Public Results 2025 Real Estate Assessment

This article was written by Cristina Umetsu, GRESB AP, ESG and sustainability consultant at CTE. Learn more about CTE here.