2020 GRESB Real Estate Results Europe - November 24

1. 1
REAL ESTATE
EMEA
Hosted by: Industry supporters:

2. 2
PROGRAM
• Welcome & Introduction| Josien Piek, Head of EMEA, GRESB; Ed Gabbitas, Director, EVORA
• GRESB Real Estate Results & Trends | Kevin Kirby, Associate, Real Estate, GRESB
• Panel Discussion 1: Asset level data / CRREM
• Moderator: Erik Landry, Climate Change Specialist, GRESB
• Dan Grandage, Head of ESG, Private Markets & Real Estate, Aberdeen Standard Investments
• Dirk Brounen, Professor of Real Estate Economics, Tilburg University (CRREM)
• Hans J. Vrensen, CFA, CRE, Managing Director, Head of Research & Strategy, AEW
• Panel Discussion 2: Technology
• Moderator: Philippa Gill, Director, EVORA
• Charlotte Jacques, Head of Sustainability, Schroders
• Emily Hamilton, Head of ESG, Savills Investment Management
• Bas Blokpoel, Director, IT & Analytics, GRESB
• Presentation: EU Disclosure Regulation
• Bahar Celik, Professional Standards Associate, INREV
• Closing | Josien Piek, Head of EMEA, GRESB

3. 3
Investor-Led Growth

4. 4
Participation
+22%

5. 5
Participation

6. 6
Participation 1,229 +96 k USD 4.8 tn
Breakdown by region

7. 7
2020 RESULTS

8. 8
GRESB Model
Regional scores comparison
Asia
Oceania
MANAGEMENT
PERFORMANCE

9. 9
GRESB Model
Country Scores Comparison

10. 10
Impact of Change
Contribution analysis
EU Global

11. 11
Performance Indicators

12. 13
KEY ESG TRENDS

13. 14
Resilience & Regulation
121
238
412
Americas Europe Asia Oceania
% participants
13%
24%
34%
2018
2019
2020

14. 15
Net Zero Transition
Towards a carbon positive built environment

15. 16
Embodied Carbon
31% of European
Development entities
assess Embodied carbon
on at least 1 project
completed during the last
3 years

16. 17
WHAT’S NEXT?

17. 18
Granularity
Reliability
Quality control
Error detection
Normalisation
Asset-level
benchmarking
Scoring of true
performance
Local and global
targets
Data
Availability
Performance
Insights
Benchmarking 2.0
Data
Quality
From data availability to scoring performance outcomes
Transitioning to Performance
• Granularity
• Reliability
• Quality control
• Error detection
• Normalisation
• Asset-level
benchmarking
• Scoring
performance
outcomes
• Local, regional and
global targets

18. 19
Stronger governance
Rooted into deeper industry involvement and collective effort for transparency
Independent standard setter
Mission driven
Investor led
By industry, for industry
Formalised by year-end
Independent benchmarking organisation
Future B-Corp
Mission driven
…..
GRESB Foundation
GRESB BV

19. 20
Industry collaboration
Collective problems require collective action
• Impact of COVID on building performance – December 2020
• Industry working group Data Providers
• Industry working group Institutional Investors
• Roadmap for defining, measuring and benchmarking performance – Q1 2021
• Assessment and benchmarking methodology for Residential portfolios – Q1 2021
• Integration of Climate Risk and Resilience into the GRESB Assessments – Q1 2021

20. 21
SECTOR LEADERS

21. 22
Sector Leaders – Europe

22. 23
Panel 1: Asset level data
& CRREM

23. 24
Panel 2: Technology

24. 25
Presentation:
EU Regulation

25. 26
REAL ESTATE
EMEA
Hosted by: Industry supporters:

26. Bahar Yay Celik
INREV
2020 GRESB Results Event
24 November 2020
Effects on the Real Estate Industry
ESG DISCLOSURE REGULATION / SFDR

27. Key EU Legislative Initiatives for Asset Managers
28
1. Disclosure Regulation ((EU) 2019/2088)
• also known as SFDR or the ESG Regulation
• Applies from Mar 2021
• Delay to final RTS publication and RTS
compliance (likely end Jan 2022)
2. Taxonomy Regulation ((EU) 2020/852):
•Applies from Jan 2022/2023
•Level 2 pending
5. MiFID II Organisation Regulation(amending
Regulation (EU) 2017/565/EU) /
MIFID Delegated Directive (amending
Regulation (EU) 2017/593/EU)
4. AIFMD Level 2 Delegated Regulation
(amending Regulation (EU) 231/2013/EU)
•Applies 12 months after coming into force
(expected to apply Q3/Q4 2021)
3. Others: Low Carbon Benchmarks
EU Climate Transition Benchmarks, EU Paris-
aligned benchmarks. Delegated legislation
integrating sustainability to local regulation
(e.g. in UK TCFD)
6. Voluntary ESG Disclosure/Reporting
UN PRI, UN SDGs, Impact Management
Project, PRI’s report on fiduciary duties,
other principles, frameworks, codes,
practices (GRESB, INREV, GRI, CDP)

28. Who is impacted?
29
EU Disclosure Regulation (SFDR)
EU firms and those wanting to
market funds in the EU
Financial market participants
(FMPs):
AIFMs, investment firms carrying out
portfolio management etc.
Financial advisers (FAs):
Firms authorised under MiFID to give
investment advice and credit institutions
in relation to a wide range of financial
products

29. SFDR – Principal Obligations
• Publish information on the integration of sustainability
risks policies in the investment decision-making process
• Publish and maintain where they consider principal
adverse impact of investment decisions on sustainability
factors (Comply or explain.), a statement on DD policies
• Publish details of how remuneration policies are
consistent with integration of sustainability risks
• All products: How sustainability risk is integrated into
investment decisions
• Product classification and DNSH principal:
• Sustainable Investment (Article 9)
• ESG Product (Article 8)
• Non-ESG/Sustainable Investment
• Disclosure Elements for where the information must be
published :
• Website, Pre-Contractual, Periodic
30
Entity Level Obligations Product Specific Obligations

30. Principle Adverse Impact Template
Climate and Environment
GHG
Emissions
(1) Carbon
Emissions
 (2) Carbon
Footprint
 (3) Carbon
Intensity
 (4) Solid Fossil
Fuel Sector
Exposure
-Emissions of
Inorganic
Pollutants
-Air Pollutants
- Ozone Depletion
Substances
-Investments
without Carbon
Emission Reduction
Initiatives
Energy
Performance
(5) Non-
renewable
Energy Cons.
(6) Non-
renewable
Energy
Breakdown
(7) Energy
Intensity
(8) Energy
Intensity Per
Sector
Biodiversity
1.(9) Biodiversity
and Ecosystem
Preservation
2.(10) Natural
Species and
Protected Areas
3.(11)
Deforestation
-Land degradation,
desertification, soil
sealing
-Investments
without sustainable
land/forestry/agri.
 -Investments
without sustainable
oceans/seas practices
-Securities not
certified as green
Water
1.(12) Water
Emissions
2.(13) Exposure
to Areas of High-
Water Stress
3.(14) Untreated
Discharged
Wastewater
Waste
1.(15) Hazardous
Waste Ratio
2.(16) Non-
Recycled Waste
Ratio
-Water consumed
-Water recycled
and reused
-Investments
without water
management
initiatives
Social, Employee and Governance
Social & Employee
Matters
1.(17) Implementation of ILO
Conventions
2.(18) Gender Pay Gap
3.(19) Excessive CEO Pay Ratio
4.(20) Board Gender Diversity
5.(21) Insufficient Whistle-
blower Protection
6.(22) Workplace Accident
Prevention
-Number/rate of accidents, injuries,
fatalities, frequency
-Number of days lost for injuries,
accidents, fatalities, illness
-Incidents of discrimination
-Securities not certified as social
Human Rights
1.(23) Human Rights Policy
2.(24) HR Due Diligence
3.(25) Preventing Human
Trafficking
4.(26) Child Labour
5.(27) Forced or compulsory
labour
6.(28) Severe Human Rights
Issues and Incidents
7.(29) Exposure to controversial
weapons
Anti-Corruption & Anti-
Bribery
1.(30) Anti-Corruption and Anti-
Bribery Policies
2.(31) Insufficient action to
address anti-corruption
breaches
3.(32) Violation of anti-
corruption laws
-Supplier code of conduct
-Grievance/complaints handling
mechanism
-Lack of separation of CEO and Chair
functions on the boards of investee
companies
31
MandatoryOpt-in

31. SFDR - Timeline
Dec 2020 Mar 2021 June 2021 Jan 2022 Dec 2022
32
Formal Application
of SFDR (Level 1)
RTS (Level 2) will become
available at a later stage
Expected deadline for RTS
(Level 2) compliance
Final RTS
(before delay)
RTS effective
(before delay)
Entity Level –
Principle Adverse
Impact Statement
Annual reporting
for Article 8 & 9
products
Product Level -
Adverse impact
statement

32. Going Forward
• Regulator
• Need more alignment between different disclosure requirements in EU legislation (Taxonomy)
• Clarification on product types, “do no significantly harm” principle
• Industry
• Act now! How does the regulation apply to you across your business?
• Engage with your investors and other stakeholders
• Importance of an integrated approach with governance, policy and risk issues
33

33. 34
Q&A
INREV Professional Standards
professional.standards@inrev.org