LE4: ESG Senior Decision Maker – Above Green

(1.65 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 applicable sub-options.

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

Yes
- Provide the details for 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)
  
  ________________________

Prefill: This indicator is similar to the one included in the 2019 Assessment and some sections have been prefilled from the 2019 Assessment. Review the response and/or evidence carefully.

2020 changes: Amended the checkbox options under ‘individual’s most senior role’.

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

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

Reporting level: Answers should be applicable at the entity and/or manager level. In the case where the senior decision-maker that is accountable for ESG issues is part of a third-party organization, then provide the organization name.

Validation

No evidence is required for this indicator.

Other: Other answer must be outside the options listed in the indicator to be valid. State the department or group that the senior decision-maker is a part of. Refer to the definition of Senior Management Team, to ensure no duplicates are provided. Include just one other answer.

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 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/organization. Senior management are sometimes referred to, within corporations, as 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, CDP Scoring Methodology, CC1.1, 2017

Global reporting Initiative, GRI 102-20: General Disclosures, 2016