Real estate companies rise on sustainability index
North American real estate owners and developers ratcheted up their green profiles markedly this year, though they still lag global trendsetters, according to the latest results of an annual sustainability study.
In GRESB’s annual environmental assessment of real estate developers and investment trusts, North American companies averaged a score of 59 out of a possible hundred, a five-point rise from last year and just shy of the global average of 60.
Australian real estate firms posted the highest average score of 74, and Macerich led American companies with a six-point rise to 84 this year.
According to GRESB, American property companies lifted their ESG (environmental, social, governance) profiles by reducing greenhouse gas emissions, saving energy, conserving water, and providing healthier indoor environments.
“In 2016, 90% of property companies and funds reporting to GRESB are integrating carbon management strategies into their investments,” said Nils Kok, CEO of GRESB. “These actions have contributed to a 2% annual decrease in carbon emissions, the equivalent of taking 704,464 passenger cars off the road.”
GRESB is an industry-driven organization of some 200 members, more than a quarter of which are pension funds and their fiduciaries that use the GRESB data in their investment management processes. Global partners in the group include CBRE, Cushman & Wakefield, and JLL.
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