RM1.1: Sustainability Due Diligence for Acquisitions

Maximum Score

4.47 points

Prefill

Eligible

Validation

Evidence is manually validated

2026 Updates

None

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Does the entity have a process to formally address sustainability risks and/or opportunities in its pre-investment processes?

Assessment Instructions

Intent: What is the purpose of this indicator?

This indicator assesses whether the entity has a process for addressing sustainability risks and opportunities during its pre-investment activities. Integrating sustainability considerations at this stage can help reduce risk and identify opportunities to strengthen future performance.

Input: How do I complete this indicator?

Instructions apply to first-year fund participants or funds that materially changed their management practices since last year's assessment.

Select yes or no. If yes, select all applicable sub-options.

Terminology

Material

An issue is material if it may reasonably be considered important for reflecting an entity's relevant environmental, social or governance impacts; or substantively influencing the assessments and decisions of stakeholders.

Sustainability Risk

Environmental, social, governance risks (i.e regulatory, license to operate) stemming from the business or operational activities of an entity.

Validation: What evidence is required?

The evidence provided will be subject to manual validation.

However, GRESB will automatically apply the previous year's validation decision for previous fund participants, provided the indicator response and documentation remain consistent (i.e., the entity does not modify its selections or evidence). Read more here.

Evidence

The evidence should sufficiently support all the items selected for this question. If a hyperlink is provided, ensure that it is active and that the relevant page can be accessed within two steps. It is possible to upload multiple documents, as long as it’s clear where information can be found.

Evidence should clearly demonstrate the selected elements of the pre-investment process. Each selected process step is explained further below:

1. Sustainability risks and opportunities are identified: The entity should have a process for identifying i). Potentially material sustainability risks and ii) sustainability-related opportunities. For example, a risk register, internal sustainability scorecard or matrix, internal risk report or annual report.

2. Sustainability risks and opportunities are analyzed: The entity should have a process to assess and rate the sustainability risks and/or opportunities. For example, a risk register, internal sustainability scorecard or matrix rating the materiality of each risk.

3. Sustainability risks and opportunities are evaluated and treated: The entity should have a process to mitigate the risks based on the outcomes of the analysis.

4. Sustainability risks and opportunities are considered and can impact the investment decision: The entity should have a process to report, review, and document such sustainability risks and/or opportunities for decision makers. This may include:

   1. Impact on Investment Committee’s decision

   2. Deal structure

   3. Pricing negotiations

   4. Post-investment action plan

The entity may redact any portion of evidence not necessary to illustrate the overall response or selected process steps.

Validation Basics

Scoring

Scoring: How does GRESB score this indicator?

The scoring of this indicator is equal to the sum of the fractions assigned to the selected options and respective sub-options, 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.

Validation status	Multiplier
Accepted	2/2
Partially Accepted	1/2
Not Accepted	0

Scoring Basics

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References

UNPRI Limited Partners’ Responsible Investment Due Diligence Questionnaire, 2015PRI Reporting Framework 2018, Direct Infrastructure Supplement, INF 05, INF 07

(Partially aligned with)

UNPRI, PRI Reporting Framework - Main definitions, 2018

The Taskforce on Nature-related Financial Disclosures Recommendations (TNFD) version 1.0 September 2023: Risk & Impact Management Pillar

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.

The organizations below deliver commercially available solutions designed to help drive improvement for this indicator. Engagement is managed directly between the reporting entity and the Solution Provider.

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.

See Directory Profile