LE5: ESG Senior Decision Maker – Above Green

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 yes, select the applicable sub-option.

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
    - Investment Committee
    - Fund/portfolio managers
    - Other: ____________
- Describe the process of informing the most senior decision-maker on the ESG performance of the entity (maximum 250 words)
  
  ________________________
No

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 should 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 sustainability issues. The answer should only refer to the department or governance structure of which the senior decision maker is part of. Ensure that the other answer provided is not a duplicate of a selected option above. Report only one other answer.

See Appendix 2a for additional information about GRESB Validation.

Scoring

1 point, G

Scoring of this indicator is equal to the fraction assigned to the selected option, multiplied by the total score of the indicator.

Other: The 'Other' answer is manually validated and points are contingent on the validation decision.

Open text box: The open text box is not scored and is for reporting purposes only.

See the Scoring Document for additional information on scoring.

Terminology

Asset manager: A person or group of people responsible for developing and overseeing financial and strategic developments of real estate 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.

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

Investment committee: A group of selected people who establish a formal process to manage the plan’s investment strategy.

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: 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

CDP, CC1.1

GRI Sustainability Reporting Standards (2016): 103-32

RobecoSAM Corporate Sustainability Assessment 2017: 3.1.5, Responsibilities & Committees

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