RM3.5: Climate-Related Opportunities Identification
Maximum Score
0.54 points
Prefill
Eligible
Validation
Evidence is manually validated
2026 Updates
None
Does the entity have a systematic process for identifying climate-related opportunities that could have a material financial impact on the entity?
Assessment Instructions
Intent: What is the purpose of this indicator?
The intent of this indicator is to assess whether and how the entity uses a systematic approach for identifying climate-related opportunities that could have a material financial impact on the entity.
A comprehensive system for identifying climate-related opportunities begins with a systematic process for identifying opportunities that could have a material financial impact on the organization or entity. Such a process ensures that entities are able to identify the most relevant business opportunities and position themselves to benefit from these.
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 selecting 'Yes', select all applicable sub-options. 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
Climate-related opportunities
The opportunities produced by efforts to mitigate and adapt to climate change, such as through resource efficiency and cost savings, the adoption and utilization of low-emission energy sources, the development of new products and services, and building resilience along the supply chain. Climate-related opportunities will vary depending on the region, market, and industry in which an organization operates.
Systematic opportunity identification process
A process for identifying opportunities that is structured, repeatable, undergone at regular intervals, and designed in such a way that it can capture the potential opportunities that could prove financial material to the entity. It may be a standalone process, or it may be a step within another larger risk assessment process. Furthermore, it may leverage quantitative methods (e.g., use of modeling, data analysis, quantitative thresholds) and/or qualitative methods (e.g., expert consultation, working groups).
Entity
Related specifically to the named entity, where entity is defined as the investable asset for which participants submit an Assessment response. This option should be selected if the scope of the reporting (e.g., Annual Report) includes actions or performance disclosure that is in direct reference to, and/or matches, the entity completing the GRESB submission. This could be an Annual Report that is solely applicable to the entity or includes specific and detailed actions/performance of the entity.
Entity-level
Explicitly applicable to the reporting entity as identified in EC1. Note that references to the overarching fund and/or group of which the reporting entity is part do not imply entity-level applicability.
Fund-of-Funds (FoF)
A Fund-of-Fund (FoF) is an investment fund that allocates capital across multiple underlying investment funds rather than directly investing in individual assets, securities, or properties. In the context of GRESB Fund and Asset Assessments, a FoF entity will use the practices of its underlying funds to report and be measured on sustainability performance.
Material financial impact
In the context of this indicator, material financial impact is used in accordance with its use by the TCFD to express information about impacts on an entity and its financial manifestations insofar as such information is deemed to be material. As per the TCFD, “in determining whether information is material ... organizations should determine materiality for climate-related issues consistent with how they determine the materiality of other information included in their financial filings.” Furthermore, “asset managers and asset owners should consider materiality in the context of their respective mandates and investment performance for clients and beneficiaries.”
Validation: What evidence is required?
Evidence
The evidence and open text bo 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.
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.
The provided evidence must cover the following elements:
Demonstrates that there is a systematic climate-related opportunity identification process in place.
Demonstrate outcomes of the climate-related opportunity identification process. It is expected that the document list/state which opportunities, or lack thereof, were identified as a consequence of the opportunity identification process having been carried out.
The outcome-based information must pertain to the entity/portfolio in question and not only to the manager/group/business-unit level. Note: For fund-of-funds, entity-level applicability must be explicitly established.
The risk assessments must be applicable to the reporting year or two years prior (2025, 2024, 2023).
Examples of appropriate evidence include, but are not limited to:
For Process: A document describing the entity’s process towards identification of climate-related opportunities or other tangible proof of the entity's climate-related opportunity identification activity. This process-based information can include information akin to materiality determination, scenario analysis, modeling, or review of legislation.
For Outcomes: An extract of a procedure undertaken, such as a risk and opportunities register or matrix, checklists, scenario analysis, or a section of a risk/opportunity framework or management plan addressing climate-related opportunities. Such documents can help exhibit the outcomes of the opportunity identification exercise.
For Entity-level Outcomes: Entity-level documentation that highlights specific climate opportunities identified for the entity. If using group-level documentation, ensure the outcomes relevant to the entity are explicitly highlighted within the broader assessment.
Other
State the 'Other' climate-related opportunities. It is not subject to automatic or manual validation but is used for reporting purposes only.
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.
Accepted
2/2
Partially Accepted
1/2
Not Accepted
0
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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