AMSTERDAM, October 18, 2022: GRESB, the global ESG benchmark for real estate and infrastructure investments, has released the results of its 2022 Assessments.
“Looking at this year’s benchmark, the industry’s embrace of ESG continues to be reflected in our strong participation numbers and increased data coverage, signaling that real assets investors and managers alike remain steadfast in their commitment to sustainability,” said Sebastien Roussotte, CEO at GRESB.
Key real estate insights
- The 2022 real estate benchmark saw the largest ever growth in total numbers, with 1,820 entities now participating worldwide, covering USD 6.9 trillion of gross asset value (GAV) across 74 countries. Significant growth was focused in the Americas (30%) and Europe (16%).
- Average GRESB scores increased by a point to 74 for the Standing Investments Benchmark and by two points to 81 in the Development Benchmark.
- Oceania continues to lead the way, with the highest regional average score of 82 in the Standing Benchmark and 88 in the Development Benchmark.
- Slight reductions in performance improvement scores were noted in energy, GHG emissions, water and waste reductions, as a result of real estate portfolios returning to a pre-COVID-19 state of operations.
“Globally, the real estate benchmark grew by 20% in 2022, representing 1,820 listed and non-listed portfolios across 74 countries and accounting for approximately USD 6.9 trillion of GAV,” said Roussote. “We are proud to see the real estate industry deepen its commitment to ESG transparency and sustainability and lead the way in creating a more sustainable future for all.”
Key infrastructure insights
- This year saw another increase in asset participation, with the Infrastructure Asset Assessment growing by 17% to include 652 assets and the GRESB Infrastructure Fund Assessment recording an 11% growth to cover 166 funds across 70 countries.
- Funds completing both assessment components now cover 70% of the benchmark with 117 entities in 2022, that is funds obtaining a GRESB Fund Score reflecting overall ESG performance at the portfolio level, with 62% portfolio coverage on average in terms of equity weight.
- In terms of scoring, EMEA remains the best performing region in 2022 for both infrastructure assets and funds. EMEA is also the most represented region for infrastructure assets with a staggering 342 assets, marking a 42% increase in the last two years.
- In terms of sector growth, asset participation growth was led by Data infrastructure with a 35% increase. With regard to sector allocation, Renewable Power, representing now 23% of the benchmark with more than 150 assets, and Transportation, representing now 27% of the benchmark with more than 180 assets, have the highest presence in the benchmark.
- The best performing sector in 2022 is Network Utilities with an average GRESB score of 85; Social Infrastructure emerged as the most improved sector with a 19% GRESB score increase.
- Significant regional growth in asset participation was seen in Asia (64%), followed by the Americas (26%) and EMEA (12%).
- Overall, the GAV reporting to GRESB more than doubled since 2019, with USD1.1 trillion of GAV in 2022 for infrastructure assets and around USD 662 billion of GAV for infrastructure funds, for a total of approximately USD 1.7 trillion.
GRESB data is now used by 170 institutional and financial investors with more than USD 51 trillion in assets under management.
“Participation in the infrastructure benchmark continues to grow, with 2022 seeing the GAV reporting to GRESB more than double to USD 1.7 trillion since 2019,” said Roussotte. “We are proud to see the infrastructure industry double down on its commitment to ESG transparency and sustainability and achieving new important milestones with every passing year.”
Full results will be made public here on October 18: gresb.com/nl-en/gresb-public-results/
GRESB Global Results Events will cover benchmark data in detail on October 18 for real estate and October 19 for infrastructure: https://events.gresb.com/
GRESB is a mission-driven and industry-led organization providing standardized and validated Environmental, Social and Governance (ESG) data to financial markets. Established in 2009, GRESB has become the leading ESG benchmark for real estate and infrastructure investments across the world, used by 170 institutional and financial investors to inform decision-making. GRESB standards are governed by the independent, not-for-profit GRESB Foundation, while ESG assessments are managed by GRESB BV, a benefit corporation. For more information, visit GRESB.com.
Director of Communications, GRESB