Value Chain Engagement

4 Points

The Value Chain Engagement aspect assesses whether the entity engages with its value chain on sustainability issues, including interactions with customers and suppliers. Effective engagement supports improved sustainability performance across the value chain, helping to reduce risks and create shared value.


1

VC0: Value Chain Engagement Context

Maximum Score

Not scored

Static

Validation

Evidence not required

Control dependent?

No

Is there context that an investor or similar stakeholder needs to understand the entity’s response to the Value Chain Engagement indicators?

Assessment Instructions

Intent: What is the purpose of this indicator?

This indicator provides the entity with the opportunity to disclose additional context to support the interpretation of its responses to the Value Chain Engagement indicators, helping stakeholders better understand the entity’s approach and circumstances.

Input: How do I complete this indicator?

Select ‘Yes’ or ‘No’. If ‘Yes’, provide context to support the interpretation of the entity’s responses to this aspect’s indicators.

Open text box: The content of this open text box is not used for scoring, but will be included in the Insights and Benchmark Reports. Participants should use this open text box to provide further details, context, or comments related to the subject.


Terminology

Value Chain

The upstream and downstream actors directly involved in the delivery of services, specifically suppliers and customers.

Validation: What evidence is required?

No evidence required.

Scoring

This indicator is not scored.


2

VC1: Customer Engagement

Maximum Score

2 Points

Static

Validation

Other answer is manually validated

Control dependent?

No

Does the entity engage with its customers on sustainability issues?

Assessment Instructions

Intent: What is the purpose of this indicator?

This indicator assesses whether the entity engages customers on sustainability issues, including the consistency and depth of that engagement over time. Customer relationships can be a key driver of sustainability impact in the data center sector, and collaboration with customers can deliver positive outcomes for both the entity and its customers, strengthening shared value and reducing value chain risks.

Input: How do I complete this indicator?

Select ‘Yes’ or ‘No’. If 'Yes', select all applicable sub-options.

  • If applicable, select all applicable engagement practices used.

Other: State the other frequency with which the entity engages with customers and/or the other practices used by the entity to engage with customers. Ensure that the other answer(s) provided are not a duplicate of the selected option above.


Terminology

Customers / Clients

Entities that procure or use the entity’s data center services, including, for example, colocation tenants and enterprise or hyperscale clients.

Consistently with every consumer

Engage at least 90% of customers on sustainability issues (the majority of customers), e.g., during lease negotiation or supporting engagements.

Customer Engagement

The process of interacting with customers to influence, support, or improve sustainability performance, practices, or outcomes.

Energy Procurement

The process of sourcing and purchasing energy for an entity’s operations, including electricity, fuels, and renewable energy, from suppliers or other generation sources.

Frequently, with most customers

Engage at least 50% of customers on sustainability issues (the majority of customers), e.g., during lease negotiation or supporting engagements.

Joint Venture

A vehicle where at least two parties share a common investment objective. Control over significant risk management decisions is not transferred to an external manager, but is exercised by members in the venture.

Sustainability feedback session

Meetings with tenants to gather feedback about sustainability-specific issues.

Sustainability training

Training related to environmental, social and governance issues. Examples of sustainability-specific training topics include, but are not limited to: sexual harassment prevention, workplace discrimination and inclusivity, cybersecurity, health and safety, resources and waste management.

Training can be delivered in person, online or in other formats.

Validation: What evidence is required?

Other Answer

The other answer(s) provided will be subject to manual validation.

For the customer engagement practices “Other” option, ensure that the practice involves direct interaction with customers.

Scoring

Scoring: How does GRESB score this indicator?

The scoring of this indicator is equal to the fraction assigned to the selected option, multiplied by the total score of the indicator. It is not necessary to select all options to achieve the maximum score.

Other: The 'Other' answer is validated and assigned a score which is used as a multiplying factor, as per the table below:

Validation status
Score

Accepted

1

Not Accepted

0

Duplicate

0

Scoring Basics


3

VC2: Supplier Engagement

Maximum Score

2 Points

Static

Validation

Evidence and other answer are manually validated

Control dependent?

No

Does the entity engage with its suppliers on sustainability issues?

Assessment Instructions

Intent: What is the purpose of this indicator?

This indicator examines whether the entity engages suppliers on sustainability issues, including the consistency and depth of that engagement over time. Through purchasing power and collaboration, the entity can influence upstream sustainability performance, helping to deliver benefits for both suppliers and the entity while reducing supply chain risks across the value chain.

Input: How do I complete this indicator?

Select ‘Yes’ or ‘No’. If 'Yes', select all applicable sub-options.

  • If applicable, select all applicable engagement actions used. Examples may include the provision of a supplier code of conduct, supported by supplier risk assessments and compliance checks.

All vendors should be considered under "Suppliers".

Other: State the other frequency with which the entity engages with suppliers and/or the other actions used by the entity to engage with suppliers. Ensure that the other answer(s) provided are not a duplicate of the selected option above.


Terminology

Collaboration on sustainable solutions

Joint initiatives between the entity and its suppliers and/or service providers to develop or improve business models, products, services, materials, technologies, or processes that support the entity’s sustainability objectives.

Financial incentives

Predetermined monetary benefits (or detriments) incorporated into the supplier's compensation structures. Examples include bonuses, raises, profit-sharing, financial rewards, and financial incentives. The financial consequences are contingent upon the achievement of the annual performance targets. Note: If a promotion/demotion consequence is listed as financial, then it can be accepted. Note: Consequences can be negative.

Suppliers

Organization upstream from the reporting entity (i.e., in the entity’s supply chain), which provides a product or service that is used in the development of the entity’s own products or services. Note that for the purposes of this assessment, 'suppliers' only refers to tier 1 suppliers with whom the entity has a direct commercial relationship.

Supplier Engagement

The process of interacting with suppliers to influence, support, or improve sustainability performance, practices, or outcomes.

Supplier sustainability due diligence

A structured process to identify, assess, and manage sustainability-related risks and performance of suppliers and/or service providers during selection, onboarding, contracting, or periodic review.

Shared sustainability action plans and/or strategies

A detailed plan outlining actions needed to enhance progress towards sustainability-specific requirements. An action plan has four major elements: (1) Specific tasks: what will be done and by whom; (2) Time horizon: when will it be done; (3) Resource allocation: what specific funds are available for specific activities, and (4) Measurable outcomes.

Sustainability data exchange

The collection, disclosure, or sharing of supplier sustainability data to assess, monitor, or improve supplier performance. This disclosure can be done with the entity or externally.

Supplier performance targets

Sustainability targets set which are assessments of supplier's performance.

Supplier code of conduct

A formal document setting out the minimum sustainability-related, ethical, social, environmental, health and safety, and/or human rights requirements that suppliers and/or service providers are expected or required to comply with.

Sustainability criteria in supplier selection

Sustainability-specific requirements or evaluation criteria included in procurement, tendering, Request for Proposal (RFP), supplier qualification, or onboarding processes to assess whether suppliers and/or service providers meet the entity’s expectations before contract award or engagement.

Sustainability feedback sessions

Meetings, workshops, or engagement sessions with suppliers to discuss sustainability-specific issues, performance, concerns, improvement opportunities, or progress toward the entity’s sustainability objectives.

Sustainability training and education

Training, guidance, tools, or educational resources designed to increase awareness and knowledge of sustainability issues.

Vendor cybersecurity screening

A structured assessment of suppliers and/or service providers that access the entity’s systems, data, networks, confidential information, or digital infrastructure to determine whether appropriate information-security and cybersecurity controls are in place to protect them from any unauthorized use or access.

Validation: What evidence is required?

Evidence

The evidence provided will be subject to manual validation.

The evidence should support each of the selected issues. The provided evidence must cover the following elements:

  1. Demonstrate actual engagement with suppliers, rather than only internal intentions, policies, or procurement principles.

  2. Demonstrate that sustainability is incorporated into the entity’s broader business strategy, rather than being addressed only through a standalone ESG policy or isolated initiative.

Other Answer

The other answer(s) provided will be subject to manual validation.

For the supplier engagement practices “Other” option, ensure that the practice involves direct interaction with suppliers.

Scoring

Scoring: How does GRESB score this indicator?

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

Evidence: For selections subject to manual validation, the validation status acts as a multiplier to determine that selection's final score.

If any requirements are not met, the evidence may not be accepted, depending on the level of alignment with the requirements.

Validation status
Multiplier

Accepted

1

Not Accepted

0

Other: The 'Other' answer is manually validated and assigned a score, which is used as a multiplying factor, as per the table below:

Validation status
Score

Accepted

1

Not Accepted

0

Duplicate

0

Scoring Basics


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