RICS ESG Leader Forum - Central & Eastern Europe

The RICS ESG Leader Forum comes together on a regular basis, mainly online, to discuss subjects which are of concern the CEE regional and the wider European real estate community.

On 12 February we welcomed on our RICS ESG Leaders’ Forum online meeting Anna Olink, GRESB EMEA Director, presenting the importance of ESG rating and benchmarking for real estate market players.

Seweryna Afanasjew MRICS, Adam Targowski MRICS and Hubert Abt FRICS also took part in the discussion that followed after.

GRESB (Global ESG Benchmark for Real Assets) was officially launched in 2009. The initiative was established to assess the environmental, social, and governance (ESG) performance of real estate assets, to promote sustainable practices within the real asset sector and to help improve the performance within that area by introducing sophisticated benchmarking methodology.  

Since that time GRESB has been expanding its reach and influence, reaching 150 institutional and financial investors as well as 3000 real estate and infrastructure funds across the globe. Although UK and Germany are most represented countries today, we can see growing interests around CEE real estate players as well.  

Real asset industry players increasingly recognize the value of ESG performance in terms of risk management, operational efficiency, and attracting investment. And GRESB's development in Europe reflects the broader evolution of reporting standards and practices, with a shift towards more comprehensive and standardized ESG reporting in the real assets sector.

1. Data Transparency and Reporting - the biggest challenge in real estate world - sharing the data - GRESB provides a standardized framework for reporting on environmental, social, and governance (ESG) performance in the real estate sector. This standardization improves transparency, allowing investors, stakeholders, and the public to compare and assess the sustainability efforts of different real estate asset. Even if You have been already using other reporting standards such as GRI they already are incorporated also in GRESB as a result of market leaders partnership program.
2. Risk Mitigation and Resilience -  Real estate entities can use GRESB insights to identify potential risks and vulnerabilities, allowing for better risk management strategies. This focus on resilience is increasingly crucial in the face of climate change and other global challenges.
3. Attracting Responsible Investment: GRESB scores and rankings are widely recognized by institutional investors, including those with a focus on responsible and sustainable investment practices. High GRESB scores can attract investors seeking assets with strong ESG performance, thereby enhancing the market appeal and competitiveness of real estate assets.
4. Operational Efficiency and Cost Savings: GRESB encourages real estate entities to implement sustainable practices, which often lead to increased operational efficiency and cost savings. Energy efficiency measures, waste reduction, and other sustainable initiatives not only contribute to a positive ESG profile but can also result in lower operational expenses over time
5. Future-Proofing Against Regulatory Changes: GRESB assessments consider compliance with various ESG regulations and reporting requirements. Participating in GRESB helps real estate entities stay informed and aligned with evolving regulatory standards. This proactive approach to regulatory compliance reduces the risk of financial penalties and disruptions caused by sudden changes in environmental and social governance regulations.

To learn more about our activities contact Arianna Barboglio on abarboglio2@rics.org or Anna Orcsik on aorcsik@rics.org