2019RESULTSS u s t a i n a b l e R e a l A s s e t s

1,005 entities

64 countrieson 6 continents

USD 4.1 trillionin gross asset value (GAV)

BENCHMARK SIZE & ASSETS LOCATION

GRESB MODEL & REGIONAL SCORES

+100,000 assets+66,000 reported at asset level

AMERICAS

USD 1,755 bn

3 8 , 2 7 4 EUROPE

USD 1,189 bn

5 3 , 0 1 5ASIA

USD 884 bn

8 , 7 0 3

OCEANIA

USD 242 bn

2 , 1 0 7

AFRICA

USD 15 bn

1 , 0 8 9

OTHER

USD 40 bn

ASSETS

GAV

REGION

L i s t e d R e a l E s t a t e M a r k e t C o v e r a g ei n % o f m a r k e t c a p i t a l i s a t i o n

EUROPE 75.2%

NORTH AMERICA 64.0%

0% 100%

ASIA PACIFIC 68.6%

GLOBAL 65.1%

# assets

0 25 50 75 100

100

50

75

25

0

GLOBAL ANNUAL DEVELOPMENT

2019 GLOBALAVERAGE

2019 LISTED2019 PRIVATE

G L O B A L A V E R A G E

S C O R E

72100

2 0 1 8 : 6 8

2016

2017

2018

2015

2014

2013

2012

2011 80

100

70

75

65

60

00 100 200 300 400 500

AMERICAS20192018 ASIA

OCEANIAEUROPE

AVERAGE GAV PER ENTITY

8

1

USD 7.0 bn

USD 2.4 bn

USD 4.0 bn

USD 2.9 bn

The 2019 results show that the overall GRESB Score for the global real estate sector has im-proved again, from 68.4 in 2018 to 72.0 in 2019, continuing the long-term trend of increased ESG performance.

The regional breakdown of GRESB Scores shows Oceania (80.9) continuing to lead the world. The Scores for Europe (70.7), Americas (72.1) and Asia (72.7) have clustered, showing only small differences in performance. The listed sector, with an overall GRESB score of 72.5, still outper-forms the non-listed sector (71.9) but the gap has narrowed significantly.

Europe continues to build upon its track record for transparency with the highest number of en- tities participating in the benchmark. The North American GRESB cohort remains the largest in dollar terms globally and the overall score for the Asian real estate sector shows the fastest year- on-year increase.

GRESB SCORES GRESB ASPECTS

THIRD-PARTY DATA REVIEW

ENERGY DATA COVERAGE

100

40

60

80

20

0

2010 20192012 2013 20152014 2016 2017 20182011

1 0 T H Y E A R C O N S E C U T I V E P A R T I C I P A N T S

84100

1 S T Y E A R P A R T I C I P A N T S

58100

0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%

2019

2015

2014

2016

2017

2018

ASSURED VERIFIED CHECK NONE ASSURED VERIFIED CHECK NONE

E N E R G Y WAT E R

2015 2017 2019

M A N A G E M E N T8 8

P O L I C Y & D I S C L O S U R E8 4

R I S K S & O P P O R T U N I T I E S7 8

S T A K E H O L D E RE N G A G E M E N T7 8

B U I L D I N G C E R T I F I C A T I O N S5 5

P E R F O R M A N C EI N D I C A T O R S6 0

M O N I T O R I N G & E M S7 7

ISO 14064-3

ISAE 3000AA1000AS

ASAE 3000

ISO 50002

ISAE 3410OTHER

ISO 14064-3

ISO 14046

ISAE 3410OTHER

ISAE 3000AA1000AS

ASAE 3000

E N E R G Y WAT E R

GRESB is connecting companies and funds at the beginning of their sustainability journey with a community of leaders, helping them to close the performance gap. The average GRESB Score of the 42 entities who have been consistently report-ing for 10 years is 84 (80 in 2018). 86% of GRESB Real Estate participants have a GRESB Score higher than 50 on both dimensions (IM and MP), an increase from 78% in 2018. These “Green Stars” have a balanced approach to ESG integration.

Competition is high among GRESB 4 Star entities, where a GRESB Score difference of only 6.4 points separates the highest from the lowest performing entity in this group. By comparison, GRESB 1 Star entities exhibit a 59.2 point differential and an average score of 58 (56 in 2018). The GRESB 1 Star cohort is comprised of a relatively large group of first-time participants using the 2019 reporting period to familiarize themselves with the GRESB Assessment and identify future priorities.

The past six years have been transformational for ESG data quality in the real estate industry. While submitting ESG data for third-party review was still lim-ited in 2014, it is now considered to be common practice when it comes to energy and water data. In 2019, only 15% of reported energy data and 23% of water data is not externally reviewed, a notable improvement in just six years.Of the three levels of third-party reviews, only external verification and assur-ance are required to be carried out in line with globally recognized standards.

The GRESB Assessment is structured into seven unique sustainability Aspects, together with a separate Aspect for New Construction & Major Renovations. The 2019 data shows notable year-on-year improvements in all GRESB Aspects with the exception of Management, which remains unchanged.

In order for institutional investors to fully understand the environmental impact of their real estate investment, managers need to report on the whole building, including common areas and tenant space. The GRESB results show that full data coverage for environmental performance indicators remains a challenge for participants.

The chart shows the distribution of energy data coverage (in %) from 2015-2019. The yearly averages - shown in the color-coded boxes on the middle-left - show that participants have steadily improved their data coverage over the last four years. In 2019, the average coverage is 68.4%, an increase of 8.9 per-centage points compared to 2015.

The progressive curves on the chart provide a more granular perspective. At the bottom left, the curves track participants with zero data coverage over the years. This share has decreased from 12.8% in 2015 to 3.4% in 2019. In con-trast, the share of participants with 100% portfolio data coverage has remained stable since 2015, indicating that overall improvement primarily comes from managers with low initial data coverage.

In 2019, only 38% of energy data and 29% of water data was subject to third-par-ty review in line with a recognized verification/assurance standard, which sug-gests significant potential for improving the overall data quality within the glob-al real estate sector. The most widely adopted standards are ISO 14064-3, ISAE 3000 and AA1000AS. Interestingly, whilst ISO 14064-3 was initially created to set principles for verifying GHG data, its requirements for selecting validators, determining the approach, and preparing validation statements widely serves as guidance when it comes to reviewing water usage data. ISAE 3000 is gen-erally applied for sustainability audits of non-financial information and there-by requires the involvement of accredited auditors. AA1000AS was set up as the first sustainability assurance standard and provides a platform to align the non-financial aspects of sustainability with financial reporting and assurance.

100%

50%

75%

25%

0%

0% 25% 75%50% 100%

2015201720182019

63.4%59.5%

68.4%66.0%

AVERAGE DATA COVERAGE

GRESB ASPECTS BUILDING CERTIFICATIONS

GRESB PUBLIC DISCLOSURE

UN SUSTAINABLE DEVELOPMENT GOALS

200

100

150

50

0

GRESB REALESTATEPARTICIPANTS(N=229)

NON-GRESBPARTICIPANTS(N=436)

E D C

PUBLIC DISCLOSURE LEVEL

B A

300

0

100

200

* A s s e t C o u n t

* E n e r g y i n t e n s i t i e s a r e c a l c u l a t e d u s i n g d a t a r e p o r t e d a t t h e a s s e t l e v e l , o n l y i n c l u d i n g a s s e t s w i t h 1 0 0 % d a t a c o v e r a g e

INDUSTRIAL RESIDENTIAL HEALTHCARERETAIL HOTELOFFICE

79 181 204 120 222 246

4,586 3,578 7,661 4,963 1,734 473

ENERGY

consumed

0.20%

WATER

consumed

-0.12%

GHG

emitted

-2.66%

WASTE

diverted

38.95%

E D C B A

100

40

60

80

20

0

As capital market demand for ESG data transparency grows, the listed real es-tate sector is responding decisively. An additional 33 listed property compa-nies and REITs participated in the 2019 GRESB Assessment, a 15.9% increase from 2018. At the same time, GRESB’s Public Disclosure analysis shows an in-crease in ESG transparency with more entities than last year achieving a “C” level - despite a more stringent methodology. Once again, the Public Disclosure analysis found listed GRESB Real Estate participants vastly outperforming their counterparts that did not participate in the 2019 Assessment. Of the 240 listed company participants in the 2019 Assessment, 61.5% disclosed at the highest A-level compared to 51.7% in the prior assessment cycle. The 13 French REITs and listed property companies included in the analysis score the highest glob-ally when it comes to ESG transparency. This is largely driven by Article 173-VI of the French Law for the Energy Transition, introduced after COP21 in 2015, which requires listed companies to report their ESG performance.

While the use of certification schemes is becoming more common, the frac-tion of total portfolio floor area covered by certificates is still low. Only 8.8% of the total floor area represented by the +100,000 assets covered by the 2019 GRESB benchmark is certified at the time of construction and 15.8% when op-erational. With 48% floor area coverage, Hotel leads other property type sectors in certified floor area, narrowly ahead of Office. Industrial and Healthcare have significantly lower building certification rates.

For a full breakdown of building certifications coverage by rating system and property sector please visit: gresb.com/2019-real-estate-results.

100

60

70

80

90

50

40

2010 20182015 2020 2025 2030

GRESB UNIVERSE TARGET

GRESB UNIVERSE (LIKE-FOR-LIKE)

UN SDG TARGET 7.3

LIKE-FOR-LIKE CHANGE OF KEY PERFORMANCE INDICATORS

& ENERGY INTENSITIES

300

0

100

200

G r e e n B u i l d i n g

C e r t i f i c a t i o n f o r D e s i g n

a n d / o r C o n s t r u c t i o n

* A s s e t C o u n t

* E n e r g y i n t e n s i t i e s a r e c a l c u l a t e d u s i n g d a t a r e p o r t e d a t t h e a s s e t l e v e l , o n l y i n c l u d i n g a s s e t s w i t h 1 0 0 % d a t a c o v e r a g e

O p e r a t i o n a lG r e e n

B u i l d i n g C e r t i f i c a t i o n

CERTIFIED

INDUSTRIAL RESIDENTIAL HEALTHCARERETAIL HOTELOFFICE

79 181 204 120 222 246

4,586 3,578 7,661 4,963 1,734 473

4% 8% 20% 9% 2% 35%

4% 23% 48% 12% 2% 61%

G R E S BP a r t i c i p a n t sT a r g e tT y p e s

A B S O L U T E1 1 %

L I K E - F O R - L I K E3 0 %

I N S T E N S I T Y - B A S E D3 8 %

N O T A R G E T2 1 %

SDG Target 7.3 aspires to double the energy effi-ciency improvement rate of the global economy by 2030. In order to meet this target, energy efficiency needs to improve by 2.6% annually between 2010 and 2030. The chart shows actual like-for-like ener-gy consumption by GRESB participants falling be-hind the SDG target for the first time since 2010. In addition, the aggregated energy efficiency targets for 2019-2030 are not ambitious enough to meet the SDG Target 7.3. We see a great opportunity for the real estate sector to leverage these transparen-cy efforts and take bolder actions to improve energy efficiency profiles ensuring alignment with national and global goals.

© 2019 GRESB BV

A b o u t G R E S B

Mission-driven and investor-led, GRESB is the environmental, social and governance (ESG) benchmark for real assets. We work in collaboration with the industry to provide standardized and validated ESG data to the capital markets. The 2019 real estate bench-mark covers more than 1,000 property companies, real estate investment trusts (REITs), funds, and developers. Our coverage for infrastructure includes 500 infrastructure funds and assets. Combined, GRESB represents USD 4.5 trillion in real asset value. More than 100 institutional investors, with over USD 22 trillion AUM, use GRESB data to monitor their investments, engage with their managers, and make decisions that lead to a more sustainable real asset industry.

Learn more at www.gresb.com

HEALTH & WELL-BEING

100%0% 100%0%

Needs Assessment

Goal Setting

Action

Monitoring

OTHER PARTICIPANTS

PAST PARTICIPANTS IN THE HEALTH & WELL-BEING MODULE

T E N A N T S A N D C U S TO M E R SE M P LO Y E E S

As creators of the built environment, the real estate industry is well-positioned to address key health determinants in their approach to real estate develop-ment and management. Over the past few years, leading real estate companies have begun to view health and well-being as a new mechanism of competi-tive differentiation and an explicit area of potential risk reduction and value creation. Leading companies have structured their health and well-being pro-grams to cover employees, tenants, communities and supply chains.

Overall, 11% more participants have programs in place to address health and well-being of employees compared to tenants. These health and well-being programs are not yet uniform or standardized across entities. Leading parit-icpants have comprehensive programs informed by an intentional health pro-motion process including policy, needs assessment, action and monitoring for health and well-being. Lagging participants have disjointed, incomplete pro-cesses for health.

The 2019 GRESB Real Estate Assessment provides investors with a new level of transparency around the real estate sector’s approach to health and well-be-ing. Engaged investors should use this new understanding to ask about the purpose and scope of an organization’s health and well-being efforts.

RESILIENCE

50% 75%25% 100%0%

All GRESB Participants

Participants in the Resilience Module

AFRICAEUROPE AMERICAS ASIA OCEANIA GLOBALLY DIVERSIFIED

In 2018, GRESB launched the Resilience Module to provide investors and par-ticipating companies and funds with information about climate risk and resil-ience. The Resilience Module is a three-year effort which will ultimately lead to new indicators in the core GRESB Real Estate and Infrastructure Assessments. In 2019, the Resilience Module was revised to increase alignment with the rec-ommendations from the Task Force on Climate-related Financial Disclosures (TCFD).

Participation almost doubled in 2019, demonstrating an increasing awareness of the need to respond to investor attention on climate risks and resilience. Ap-proximately 25% of Resilience Module participants reported comprehensive pro-grams with activities including governance, risk management, business strategy, and measurement. The remaining 75% reported highly variable programs, often lacking any activity in one or more of the core categories recommended by the TCFD. Most entities report some level of climate-risk and resilience-related gov-ernance activities, while entities with comprehensive programs also report coor-dinated business strategies, targets, and performance metrics.

100

0

100

1000

0

100

0

46%

13%

25%

16%

0 228COUNT

METRICS AND TARGETSRISK MANAGEMENT

STRATEGY

GOVERNANCE

% Y E S

VALIDATION PROCESS

An open and transparent data validation process is key to GRESB’s annual benchmarking process. GRESB operates a three-tier validation process: All Par-ticipant Check, Validation Plus, Validation Interview.

GRESB checks:• The existence and content of answers to open text boxes.• The additional information provided to Assessment Indicators, e.g.

third-party organization names, assurance, audit, certification and verifi-cation standards and ‘other’ answers.

• The documents uploaded as supporting evidence for the answers provided.• Automated outlier and consistency checks of performance data including

energy and water consumption, GHG emissions and waste generation.

GRESB identifies reported consumption values as outliers if the corresponding consumption intensity (consumption/area) and/or its change over time is ab-normal relative to all reported data for a particular property type.

The pattern and impact of validation decisons on the 2019 Validation Plus in-dicators is shown in the chart. Specific outcomes from the Validation Plus pro-cess show 93% of the 27,056 pieces of supporting evidence uploaded were ac-cepted, having met pre-defined validation rules. In cases where the supporting evidence was rejected, the indicator was assigned a score of 0.

For more information on lessons learnt from the validation process please visit: gresb.com/2019-real-estate-results.

50% 75%25% 100%0%

MA5: ESG factors included in performance targets

PD1: Policy on environmental issues

PD5.1: Section in Annual report

PD5.1: Sustainability report

PD5.1: Integrated report

PD5.1: Dedicated section on company website

PD5.1: Section in entity reporting to investors

RO3.1: Due dilligence on new acquisitions

ME1: Environmental management systems (EMS)

SE4.1: ESG specific requirements in the procure-

ment process

ACCEPTED ANSWERED NOPARTIALLY & NOT ACCEPTED