LE4: Personnel Sustainability Performance Targets
Prefill
Eligible
Validation
Evidence and Other answer are manually validated
2026 Updates
None
Does the entity include sustainability factors in the annual performance targets of personnel?
Assessment Instructions
Intent: What is the purpose of this indicator?
This indicator assesses whether, and to what extent, sustainability-related issues are included in personnel performance targets. Incorporating these factors into annual objectives can strengthen the entity’s ability to improve sustainability performance over time.
Input: How do I complete this indicator?
Select Yes or No: If selecting ‘Yes’, select applicable sub-options.
Financial: Select from the available sub-options. Financial consequences are any consequences that relate to monetary impacts. For good practice examples, see the ‘References’ section below.
It is possible to report using the ‘Other’ answer option. Ensure that the ‘Other’ answer provided is not a duplicate or subset of another option.
Terminology
Annual performance targets
Targets set in annual performance reviews based on assessments of employee performance.
Asset manager
A person or group of people responsible for developing and overseeing financial and strategic developments of investments at asset level.
Board of Directors
A body of elected or appointed members who jointly oversee the activities of a company or organization as detailed in the corporate charter. Boards normally comprise both executive and non-executive directors.
C-suite level staff
A team of individuals who have the day-to-day responsibility of managing the entity. C-suite level staff are sometimes referred to, within corporations, as senior management, executive management, executive leadership team, top management, upper management, higher management, or simply seniors.
Dedicated employee(s) on sustainability issues
The employee(s)’ main responsibility is defining, implementing and monitoring the sustainability objectives at entity level.
Sustainability Factor
Criteria associated with the entity’s sustainability objectives identified in LE2.
Sustainability Manager
Dedicated employee(s) who manages the sustainabilty strategy and implementation of the entity.
External manager or service provider
Organizations, businesses or individuals that offer services to others in exchange for payment. These include, but are not limited to, consultants, agents and brokers.
Financial consequences
Predetermined monetary benefits (or detriments) incorporated into the employee compensation structures. Examples include bonuses, raises, profit-sharing, financial rewards, and financial incentives. The financial consequences are contingent upon the achievement of the annual performance targets.
Note: If a promotion/demotion consequence is listed as financial, then it can be accepted.
Note: Consequences can be negative.
Fund/portfolio manager
A person or a group who manages a portfolio of investments and the deployment of investor capital by creating and implementing asset level strategies across the entire portfolio or fund.
Investment analysts
A person or group with expertise in evaluating financial and investment information, typically for the purpose of making buy, sell and hold recommendations for securities.
Investment Committee
A group of individuals who oversee the entity’s investment strategy, evaluates investment proposals and maintains the investment policies, subject to the Board’s approval.
Investor relations
A person or a group that provides investors with an accurate account of company affairs so investors can make better informed decisions.
Validation: What evidence is required?
Evidence
The evidence provided will be subject to manual validation.
The provided evidence must cover the following elements:
Existence of sustainabiltiy-related performance targets: the evidence must demonstrate that sustainability performance targets are explicitly tied to the annual performance of the selected personnel groups:
If sustainability objectives apply to all employees, the evidence must clearly state that. For example, a policy document stating that sustainability goals are mandatory for all employees during performance reviews would suffice. Language that references all employees will support all personnel groups except the Board of Directors, which must be explicitly referenced.
If sustainability objectives are specific to certain personnel groups, the evidence must clearly link the targets to only those groups. For example, a performance review template that explicitly requires asset managers to meet carbon emission reduction targets for client travel would suffice.
Personnel group applicability: targets must relate to all members within the selected personnel groups:
If the sustainability target applies to only one individual within a broader personnel group, this must be reported under the "Other" answer.
For personnel groups consisting of a single individual, the evidence must explicitly clarify this in the provided documentation or the open text box.
If an entity provides evidence showing how a sustainability target has a financial consequence for a specific employee within a personnel group and clearly states that the target and consequences apply to the remaining employees in the group, this evidence will be considered sufficient to support the applicability of the target for the entire group.
Financial consequences tied to sustainability performance: the evidence must explain the financial implications (positive or negative) for meeting or failing to meet sustainability targets for each selected personnel group. This includes clearly linking the financial consequences (e.g., bonuses, pay adjustments, penalties, etc.) to the sustainability targets of each selected personnel group. The connection must be clearly defined within the provided documents, open text box, or cover page.
Examples of acceptable evidence: policy documents, process guidelines, employee performance reviews for the reporting year, employment contracts or documentation describing financial consequences (e.g., bonus schemes, web pages). Note that sensitive information may be redacted from the documents as long as the requirements outlined above are clearly met. If the consequences are not clearly defined and connected to the sustainability targets within the provided evidence, then sufficient explanation must be provided within the evidence open text box.
Other Answer
The ‘Other’ answer provided will be subject to manual validation.
State the specific employee type and ensure the following:
Other answers should relate to groups of employees, such as acquisition, development, or facilities teams, or specific personnel who have sustainability targets assigned to them.
If a target relates to a single employee within a personnel group, their name and role must be reported as an Other answer.
Other answers cannot be a duplicate of a previously selected option. For example, ‘sustainability team’ should not be used if ‘dedicated staff on sustainability issues’ is already selected.
Multiple Other answers are acceptable, but only one will count toward the score.
Good practice examples
Scoring
Scoring: How does GRESB score this indicator?
The scoring of this indicator is equal to the fraction assigned to the selected option, multiplied by the total score of the indicator.
Evidence
The evidence is manually validated and assigned a multiplier, according to the table below. The evidence must support the validation requirements. If any requirements are not met, the evidence may be partially accepted or not accepted, depending on the level of alignment with the requirements.
Accepted
2/2
Partially Accepted
1/2
Not Accepted
0
Other
The 'Other' answer is manually validated and assigned a score, which is used as a score multiplying factor as outlined below:
Accepted
1/1
Not Accepted
0
Duplicate
0
Frequently Asked Questions
For the ‘Personnel sustainability performance targets’ indicator, will evidence be fully accepted if financial consequences apply only to some of the personnel within the selected group?
The reporting entity may only select a personnel group if the financial consequences linked with the sustainability performance targets apply to all members of the selected personnel group. If, for example, only a single employee of the personnel group is impacted by financial consequences linked with the achievement of sustainability objectives, a participant should select "Other" rather than the personnel group of which is part, and include the following information in the description:
Employee’s name;
Employee's title.
For indicator LE4, ‘Personnel sustainability performance targets,’ can the financial consequences take effect after the reporting year?
Regardless of when they take effect, the financial consequences must be associated with the personnel’s achievement of sustainability targets within the reporting year chosen in indicator EC4. Evidence must demonstrate that the performance period considered for reaching the targets fell within the reporting year.
References
Alignment with External Frameworks
Get Support: Solution Providers
GRESB Solution Providers are independent, third-party organizations within the GRESB Partner network that offer specialized products, tools, and services to support sustainability performance outside the GRESB Assessment process.
Currently, there are no GRESB Solution Providers associated with this indicator.
GRESB will continue to update this section as the GRESB Solution Provider network grows. Please check back regularly to find GRESB Solution Providers who can support your sustainability performance.
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