The headline says it all: we’re working with GRESB to build a new industry standard for data quality. The GRESB ESG Data Quality Standard and Quality Metric will elevate the use of ESG data in commercial real estate strategy, action, and investing.
So what does this actually mean? Why build this now? And, most importantly, how does it impact you?
We’re glad you asked.
What is the GRESB ESG Data Quality Standard?
The GRESB ESG Data Quality Standard and Quality Metric (for conversation, let’s call it “the Standard”) provide an objective, open standard that all real estate companies and investors can reference to understand how “good” their ESG data is.
Through the Standard, with input from the Data Quality Technical Working Group, we will all be able to use a common guideline for creating and vetting data quality. An industry standard for data quality has been severely missed in real estate, and is needed for better ESG adoption and incorporation into investment strategies.
The Partners of the Working Group expect to take one year to develop the Data Quality Standard followed by a year-long pilot period exclusively facilitated by Measurabl. Once the Standard is ready for application, we will jointly host an annual “Leaders in Data Quality” Award to recognize those who are pioneering the Standard. Learn more about the GRESB ESG Data Quality Standard.
Why create a data quality standard now?
Measurabl’s mission is to make ESG data part of every real estate transaction. For that to occur, ESG data must first be trusted. If it’s not trusted, real estate stakeholders will not include it in their decisions and, failing those decisions, the industry will be less able to deliver its full potential.
Today, there’s a gap in the trustworthiness of ESG data. According to a PwC report, only 29% of investors have confidence in the ESG data that companies report. Real estate is the world’s largest asset class; we have the opportunity – and, frankly, need to – take the lead in elevating transparency and standardization in ESG reporting, which is increasingly a mainstream practice. If we do not advance the trust in and credibility of ESG data, real estate stakeholders will lack the confidence to make decisions using ESG factors and the industry will stall.
Thus, the Standard and Metric will be instrumental in boosting ESG data to an integral part of the investment process for commercial real estate.
Measurabl and GRESB are currently assembling the Data Quality Technical Working Group with a goal to have the Standard and Metric available by the start of 2020. Until then, hang tight. We’re constantly working to improve your data quality, and will have progress updates for you along the way.