LE5: ESG Senior Decision Maker – Above Green

(1.8 points)

Intent

The presence of senior management dedicated to ESG increases the likelihood that the objectives will be met. A structured process to keep the most senior decision-maker informed on the entity’s ESG performance increases accountability and encourages continuous improvement.

Requirements

Select Yes or No: If selecting Yes, select all applicable checkbox(es).

Does the entity have a senior decision-maker accountable for ESG issues?

Yes
- Provide the details for the most senior decision-maker on ESG issues
  - Name: ____________
  - Job title: ____________
  - The individual's most senior role is as part of:
    - Board of directors
    - C-suite level staff
    - Fund/portfolio managers
    - Investment committee
    - Other: ____________
No
- Provide additional context for the answer provided (not validated, for reporting purposes only)
  ________________________

Senior decision-maker: The entity’s most senior decision-maker on ESG is expected to be actively involved in the process of defining the ESG objectives and should approve associated strategic decisions regarding ESG. This person can be the same as the individual identified in LE3.

Details of employee: Participants must provide the name and job title of the relevant employee. This information will be used for reporting purposes only.

Open text box: The content of this open text box is not used for scoring, but will be included in the Benchmark Report. Participants may use this open text box to communicate on:

Means of communication. Examples can include, but are not limited to: written memos, formal reports, presentations or meeting minutes;
Frequency of reporting. Examples can include, but are not limited to: monthly, quarterly or annually;
Contents of reporting. Examples can include, but are not limited to: (i) an overview of asset performance (quantitative), (ii) realized ESG performance against objectives, (iii) updates regarding long-term strategic objectives, (iv) updates/notifications regarding regulatory changes or (v) updates regarding proposed actions to improve the performance of the assets.

Validation

Other: State the other senior decision-maker on ESG issues. The answer should only refer to the department or governance body of which the senior decision maker is part of. Report only one other answer.

See Appendix 4 of the reference guide for additional information about GRESB Validation.

Scoring

This indicator is scored as a One Section Indicator. Evidence is not required. Points are awarded based on the level of seniority of the responsible senior decision-maker. Checkboxes are equally weighted.

Other:Any ‘other’ answer provided will be manually validated and must be accepted before achieving the respective fractional score. If multiple ‘other’ answers are listed, more than one may be accepted in manual validation, but only one will be counted towards the score.

Terminology

Asset manager: A person or group of people responsible for developing and overseeing financial and strategic developments of investments at asset level.

Board of Directors: A body of elected or appointed members who jointly oversee the activities of a company or organization as detailed in the corporate charter. Boards normally comprise both executive and non-executive directors.

C-suite level staff: A team of individuals who have the day-to-day responsibility of managing the entity. C-suite level staff are sometimes referred to, within corporations, as senior management, executive management, executive leadership team, top management, upper management, higher management, or simply seniors.

ESG strategy: Strategy that (1) sets out the participant’s procedures and (2) sets the direction and guidance for the entity’s implementation of ESG measures.

Fund/portfolio manager: A person or a group who manages a portfolio of investments and the deployment of investor capital by creating and implementing asset level strategies across the entire portfolio or fund.

Investment Committee: A group of individuals who oversee the entity’s investment strategy, evaluates investment proposals and maintains the investment policies, subject to the Board’s approval.

Person accountable: A person with sign off (approval) authority over the deliverable task, project or strategy. The accountable person can delegate the work to other responsible people who will work on the implementation and completion of the task, project or strategy.

Senior decision-maker accountable for ESG issues: A senior individual with sign off (approval) authority for approving strategic ESG objectives and steps undertaken to achieve these objectives. The accountable person can delegate the work to other responsible people who will work on the implementation and completion of the task, project or strategy.

References

Recommendations of the Task Force on Climate-Related Financial Disclosures June 2017: Governance A&B

Alignment with External Frameworks

CDP Climate Change 2020 - C1 Governance

GRI Standards 2016 - 102-20: Executive-level responsibility for economic, environmental, and social topics