What is GRESB and why it matters for commercial real estate success
Commercial real estate (CRE) is going through a major shift. More real estate investors and tenants are looking at how buildings perform beyond just financial returns.
They are paying closer attention to environmental and social impacts, often called ESG, short for environmental, social, and governance factors. These include how a building uses energy, treats waste, supports communities, plans for climate risks, and addresses nature-related risks such as biodiversity loss and ecosystem degradation.
To understand and compare how buildings perform on ESG, the real estate sector uses benchmarks. One of the most widely used is GRESB, an industry led organization that has become a standard for esg assessments.
What is GRESB?
GRESB stands for Global Real Estate Sustainability Benchmark. It is like a report card for how “green” real estate companies and their buildings are. Since 2009, GRESB has been the premier provider of validated esg data and benchmarks for real estate assets and infrastructure assets.
Created by a group of pension funds who wanted to know if their real estate investments were environmentally friendly, GRESB has grown into the go-to system for measuring sustainability performance in real estate and infrastructure.
How does the GRESB foundation support ESG reporting?
Every year, thousands of property companies and funds submit asset level data about their buildings. GRESB then scores them on things like energy consumption, carbon emissions, and how they treat tenants.
GRESB aligns with international reporting frameworks and offers standardized and validated data to ensure consistent esg performance tracking across regions. This is critical for capital markets and asset managers seeking comparability and transparency.
Simple definition: GRESB is a scoring system that rates how sustainable real estate portfolios are.
Main job: It lets investors compare which companies are more environmentally and socially responsible, supporting better investment decisions and risk management.
Big picture: As of 2024, over 2,200 real estate companies participate, representing about $7 trillion in property value worldwide including major players like Brookfield, Prologis, and Gecina.
Think of GRESB as the way the financial markets keep score of who's making the biggest positive environmental impact.
How the GRESB assessment process works
The assessment process happens once a year. Property companies submit their data collected between April and July and get their scores in October. The assessment covers both real estate and infrastructure investments.
The GRESB process timeline
The assessment looks at three main areas:
- Management component: How companies handle sustainability practices at the corporate level
- Performance component: How existing buildings actually operate
- Development components: How new construction projects incorporate sustainability
Component scoring breakdown
Assessment ComponentMaximum PointsFocus AreasManagement30Leadership & governance, policies, risk management, stakeholder engagementPerformance70Energy, GHG emissions, water, waste, building certifications, data qualityDevelopment70Sustainable design, construction practices, certifications, site selection
Companies answer questions and provide evidence about their practices. The questions cover everything from utility bills to stakeholder engagement programs.
What does GRESB measure?
GGRESB collects data on:
- Energy consumption in buildings
- Water consumption
- Waste management
- Greenhouse gas emissions
- How companies engage with tenants
- Corporate policies on sustainability
After reviewing this validated data, GRESB calculates a score. This becomes part of the GRESB development benchmark or real estate development benchmark, depending on the project type.
Understanding your GRESB score
A GRESB score is a number between 0 and 100 that reflects how well a property company handles ESG issues. Higher scores mean stronger performance indicators and market recognition.
The score is derived from asset level and portfolio-level inputs, and GRESB provides analytical tools to compare peers.
As of the 2024 cycle, 2,223 entities, including property companies, real estate investment trusts, funds, and developers, submitted to GRESB. Results are structured in a quintile system, with a 5-star rating for top 20% performers.
Many investors and banks use these ratings to evaluate ESG risks and align with sustainability expectations. GRESB scores are also increasingly linked to global goals like the Paris Climate Agreement and the Sustainable Development Goals.
The star rating makes it easy to see how a company compares to others in the same region and property type. A 5-star rating means you're in the top 20% of all participants while those in the bottom 20% receive a 1-star rating.
Companies can use their GRESB score to show investors and tenants that they take sustainability seriously. Many investors won't put money into properties with low scores.
Why GRESB ratings drive decisions for fund managers and asset operators
GRESB has become vital in commercial real estate for several reasons.
First, provide financial markets with credible sustainability data. Investors often require actionable data before allocating capital. A poor score may mean missing out on large investments.
Second, good scores improve access to capital. Some banks offer better loan terms for high-scoring properties due to lower esg risks.
Third, tenants want green buildings. GRESB helps landlords meet this demand through better sustainability practices.
GRESB helps with:
Attracting investor capital
High GRESB scores attract investors who have sustainability requirements for their portfolios.
Saving on operating costs
The practices that improve GRESB scores often reduce operating costs through lower utility bills.
Reducing climate and regulatory risks
Properties prepared for climate change and new regulations face fewer future risks.
Retaining tenants
Sustainable buildings typically offer better indoor environments, making tenants happier and more likely to renew leases.
In competitive markets, a strong GRESB score can be the difference between a building that thrives and one that struggles to stay full.GRESB score can be the difference between a building that thrives and one that struggles to stay full.
Recent key updates in the 2025 & 2026 GRESB standard
The introduction of biodiversity criteria in GRESB 2025 represents just the beginning of nature's integration into commercial real estate assessment frameworks.
Biodiversity
Just as bees play a crucial role in ecosystem health, buildings affect the plants and animals around them. GRESB's new biodiversity indicators ask about how properties support or harm local ecosystems.
These unscored questions cover:
- Habitat protection or creation
- Native plant species
- Reduction of harmful chemicals
- Wildlife support
Urban beekeeping is one way commercial buildings can support biodiversity. Bees help pollinate plants in city environments where natural pollinators may be scarce. Educational programs about bees also help tenants understand the importance of biodiversity.
Other biodiversity initiatives include:
- Green roofs with native plants
- Rain gardens that filter stormwater
- Reduced use of pesticides and herbicides
- Bird-friendly window designs
Building certifications
GRESB is collecting more detailed information about building certifications to better understand their quality and coverage. The standards now ask about:
- What aspects of sustainability each certification covers
- How rigorous the certification requirements are
- What percentage of the building is certified
The 2026 GRESB Real Estate Standard updates introduce several important changes that strengthen the assessment's focus on measured performance and climate action. The updates include scored recognition for embodied carbon measurement and transparency, reflecting the industry's growing attention to upfront carbon impacts from building materials and construction. GRESB has also refined its net zero framework to strengthen credibility and improve alignment with frameworks like the Science Based Targets initiative, while adjusting indicator weights to elevate performance expectations and reward actual environmental outcomes over policy documentation.
Technical improvements include GHG scope reclassification for better alignment with other climate disclosure frameworks and enhanced guidance on data estimation methodologies to improve result accuracy. These changes follow the GRESB Foundation's multi-year roadmap and represent continued evolution toward rewarding real-world environmental performance in commercial real estate portfolios.
How to improve your GRESB rating with actionable ESG data
Looking to boost your GRESB score? Focus on the fundamentals: identify ESG gaps, implement smart energy and waste strategies, engage tenants with visible sustainability initiatives, and track key performance metrics.
Alvéole can help increase your score by up to 2.6 points through nature-based solutions like urban beekeeping, which align with GRESB biodiversity criteria and broader GRESB reporting categories.
Steps to align your portfolio with GRESB
1. Assess your current ESG performance
The first step is to see how your buildings are doing right now. This is like checking a beehive to see how much honey is being produced.
Take an inventory of:
- Energy use in all buildings
- Water consumption patterns
- Waste management practices
- Current certifications
- Biodiversity initiatives
Compare your current practices to what GRESB asks for. This will show you where you're doing well and where you need to improve.
2. Implement data collection tools
Accurate data underpins a successful GRESB submission. Set up systems to capture:
- Energy and water usage (e.g. utility bills, submetering)
- Carbon emissions (from energy and fuel)
- Waste diversion (via hauler reports or service providers)
Many buildings use software platforms that automatically collect this information. These tools can save time and improve accuracy.
3. Advance biodiversity and certification efforts
Biodiversity initiatives don't have to be complicated. Simple projects like:
- Installing beehives on rooftops
- Planting native flowers and plants
- Creating small wildlife habitats
- Reducing light pollution to protect night creatures
can make a difference and help meet the new GRESB biodiversity indicators.
For building certifications, review which ones best match your property type and sustainability goals. Some certifications focus on energy, while others emphasize occupant health or overall environmental impact.
Why a biodiversity strategy matters for commercial real estate
1. The built environment is driving biodiversity loss
Buildings take the place of natural habitat and add to pollution, and real estate investments can measurably affect biodiversity. The flip side: a company that manages those assets well can become one of biodiversity's strongest allies.
2. Regulations and investor frameworks are evolving fast
The Taskforce on Nature-Related Financial Disclosures (TNFD) asks businesses to assess, report, and act on their nature-related dependencies, impacts, risks, and opportunities, with the goal of shifting financial flows toward companies that have a positive impact on nature.
It's voluntary today, but adoption is accelerating. Major funds like BlackRock and HSBC have signaled interest in aligning, and leading frameworks like GRESB are moving the same direction. As that happens, asset managers will face growing pressure to disclose or risk missing out on funding.
Europe shows where this is headed. UK development projects already face mandatory Biodiversity Net Gain requirements, and the Corporate Sustainability Reporting Directive (CSRD) applies to roughly 50,000 EU companies. North America is likely to follow.
3. Nature-related risks can lead to financial loss
Unmanaged nature-related risks hit the bottom line. Operationally, they can mean building damage, disrupted operations, and higher maintenance and resource costs. They also shape tenant experience: better environmental performance supports indoor air quality, wellbeing, and satisfaction, and tenants often pay more for certified green buildings. There's reputational risk too. If your assets are harming the environment and you have no plan to address it, stakeholders will notice.
4. Investors want to know you're prepared
This is the most convincing reason of all. Investors want confidence that you've identified your nature-related risks and have a plan to manage them. They're investing in a resilient property, and a clear strategy signals that you're prioritizing material issues in your ESG reporting. Some even treat it as a competitive advantage when raising capital.
Here is a recorded conversation between Alvéole found Alex McLean and former Senior Director at GRESB on this topic.
Bringing nature into real estate strategy
The commercial real estate industry is discovering that nature and buildings can do more than just coexist. They can benefit each other.
GRESB recognizes this through its biodiversity measures, which award points for protecting and enhancing natural elements at properties. As climate concerns grow, these GRESB biodiversity initiatives are becoming more important in scoring.
Forward-thinking property owners are going beyond just planting trees. They're creating habitat corridors, installing green roofs, and bringing nature directly to tenants through innovative programs.
Urban beekeeping as an example
Urban beekeeping offers a perfect example. Rooftop hives support pollinator populations while creating unique educational opportunities for building occupants. The honey produced becomes a tangible reminder of the building's environmental commitment.
These nature-based approaches deliver multiple benefits:
- They improve biodiversity scores in GRESB assessments
- They create visible sustainability features that tenants value
- They provide educational content for tenant engagement programs
- They contribute to urban ecosystem health
As GRESB continues to evolve, expect to see more emphasis on how buildings interact with the natural world. Properties that find creative ways to integrate nature will likely see this reflected in stronger GRESB performance.
Native pollinator gardens
Not all buildings have room for beehives, but most have space for pollinator-friendly plants.
Converting even small areas from turf grass to native flowering plants can dramatically increase biodiversity. Native plants require less water and maintenance while supporting local wildlife.
Good spots for pollinator gardens include underused lawn areas, building entrances, courtyards, rooftop spaces, and parking lot islands. These areas are often overlooked but can be transformed into valuable biodiversity hubs with minimal disruption to building operations.
The key is using plants native to your region. These plants evolved with local pollinators and provide the specific food and habitat they need.
Green roofs and living walls
For buildings with limited ground space, the solution might be going up, literally.
Green roofs transform unused roof space into living ecosystems. They range from simple sedum mats to complex gardens with trees and shrubs.
Living walls bring nature to vertical surfaces, turning bland walls into vibrant, living tapestries that support biodiversity.
Both options provide multiple benefits that are documented in global building performance studies:
- Habitat for birds, insects, and plants
- Better stormwater management
- Reduced urban heat island effect
- Improved building insulation
- Enhanced aesthetic appeal
How green building certifications impact GRESB scores
Green building certifications and GRESB scores are connected in a simple way: buildings with certifications help boost a company's GRESB score. This makes sense because certified buildings typically perform better on the environmental metrics that GRESB tracks.
In the GRESB scoring system, building certifications account for about 10.5% of the total score. That might not sound like much, but it can make the difference between an average and top-tier rating.
Here's how different certifications stack up in GRESB:
GRESB gives more weight to certifications that measure actual building performance rather than just design features. For example, LEED for Operations and Maintenance (O+M) or BREEAM In-Use get more points than certifications for new construction.
The percentage of your portfolio with certifications matters too. If 80% of your buildings have green certifications, you'll score higher than if only 20% do.
- Better overall performance: Buildings with certifications typically score better across multiple GRESB categories, not just in the certification section
- Data consistency: Certified buildings usually have better tracking systems for energy, water, and waste
- Verification advantage: Third-party verified data (which certifications provide) gets more credit in GRESB
According to GRESB's public data, portfolios with more certified buildings outperform others by about 12% on average in the Performance component of the assessment.
Which benchmarks complement GRESB for portfolio ESG performance
GRESB works well with other reporting frameworks to give a complete picture of sustainability performance. While GRESB focuses specifically on real estate, these other benchmarks cover different aspects of environmental, social, and governance reporting.
Carbon Disclosure Project (CDP)
CDP is all about climate change and carbon emissions. Where GRESB focuses on buildings, CDP looks at an organization's overall climate impact.
Companies report to CDP about their greenhouse gas emissions, energy use, and climate strategies. The information is then scored from D- to A, giving investors insight into how well companies are managing climate risks.
The data collected for CDP can support GRESB reporting, especially for environmental indicators. Many real estate companies report to both systems, using similar data but in different formats.
Sustainability Accounting Standards Board (SASB)
SASB created specific reporting guidelines for 77 different industries, including real estate. It focuses on the sustainability issues most likely to affect financial performance.
For real estate companies, SASB standards cover topics like energy management, water efficiency, and tenant engagement. These align closely with several GRESB indicators.
The big difference? SASB is about financial materiality – how sustainability affects the bottom line. GRESB is more about overall ESG performance. Using both gives investors a more complete picture of how sustainability connects to business success.
Global Reporting Initiative (GRI)
GRI is the most comprehensive sustainability reporting framework. It covers environmental, social, and governance topics across all types of organizations.
Unlike GRESB, which is specific to real estate, GRI can be used by any company in any industry. It's also designed for all stakeholders, not just investors.
GRI reporting includes both numbers (like energy use) and descriptions (like management approaches). This broader scope complements GRESB's more focused real estate assessment, providing context around governance and social policies.
Corporate Sustainability Reporting Directive (CSRD)
CSRD is the European Union’s new standard for corporate ESG reporting. Unlike GRESB, which focuses on real assets, CSRD applies to entire organizations, requiring them to disclose detailed sustainability risks and impacts.
Companies must report using the European Sustainability Reporting Standards (ESRS), covering topics like climate, biodiversity, and social responsibility. The goal is to make ESG data more consistent and comparable across the EU.
For real estate firms operating in Europe, CSRD reporting often overlaps with GRESB. Many of the same environmental indicators—like energy use and emissions—can be used for both, just adapted to each framework’s format.
CSRD also brings tax transparency into the spotlight. Companies must disclose how their tax strategies align with their overall sustainability commitments. This means going beyond legal compliance—reporting must show how tax contributions support social equity, public services, and environmental goals. Transparent tax practices are seen as a reflection of corporate values and accountability, reinforcing a company’s role in supporting sustainable economic systems.
FAQs about GRESB biodiversity reporting
What does GRESB stand for?
It started as the Global Real Estate Sustainability Benchmark, a method for scoring how real-estate portfolios manage environmental, social, and governance (ESG) issues. The letters remain even though GRESB’s work now also covers infrastructure.
What is a GRESB score?
It’s a 0–100 rating that sums two pieces: Management (policies and strategy) and Performance (measured results like energy use and emissions). The higher the total, the stronger the portfolio’s ESG performance compared with similar companies.
What is the difference between CDP and GRESB?
CDP focuses on climate disclosure, especially carbon emissions, for companies in every industry. GRESB takes a wider view of environmental, social, and governance (ESG) issues but limits its scope to real-asset portfolios like buildings and infrastructure. Because CDP’s carbon data fits inside GRESB’s broader framework, many real-estate firms report to both.
Can existing green initiatives count toward my biodiversity strategy?
Yes, existing initiatives like green roofs, native landscaping, or pollinator habitats can be included in your biodiversity strategy if you document how they specifically support local ecosystems and biodiversity goals.
How is biodiversity performance measured for real estate?
Biodiversity performance can be measured through metrics like habitat area created, number of native plant species installed, presence of indicator species (like birds or butterflies), or reduction in harmful practices like pesticide use.
