***
**The structure of the entity's core business is:**
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## Assessment Instructions
Intent: What is the purpose of this indicator?
Describe the structure and business risk of the participating entity. The Asset Development Phase influences materiality (see guidance in RC6 and the [GRESB Materiality Tool](https://cdn.svc.gresb.com/gresb-prd-public/2026/INF_Documents/2026_GRESB_Infrastructure_Development_Asset_Materiality_and_Scoring_tool.xlsx) for more details) and peer grouping.
Input: How do I complete this indicator?
**Structure:** Select whether the entity’s structure is that of a Corporate, a Special Purpose Vehicle or some other structure (if so, then please describe).
**Business risk (revenue basis):** Select the most significant business risks (or revenue basis) borne by the entity being Merchant, Concessionary/Contracted, Regulated, or Other. More than one selection (i.e. a combination) is allowed. This aligns with the EDHECinfra™TICCS™ classification for Business Risk. Multiple answers are possible. For ‘Other’ answer, describe the business risk borne.
**Asset Development Phase:** Answer 'Yes' if the asset was under construction or 'No' if it was in its pre-construction phase during the reporting period specified in indicator EC4.
This information will be used for peer-grouping and will affect phase-materiality (see ‘Materiality Based Scoring’ in the Reference Guide for more).
**Note:** If one or more facilities of the asset are under construction, then the asset is considered to be in its construction phase.
#### Terminology
**Asset Development Phase**
> An asset under development will be either under construction and the asset is in its construction phase, or the asset has not started construction yet and it is in its pre-construction phase.
**Concessionary/Contracted**
> A contracted infrastructure organization that enters into a long-term contract to presell all or most of its output at a pre-agreed price. All or the majority of market risk (price and/or demand) is transferred to a third party. The contract is for a significant period of the investment’s life, typically one or several decades.
**Corporate**
> A corporate structure is that of a legal entity that is separate and distinct from its owners. Corporations have limited liability, which means that shareholders may take part in the profits through dividends and stock appreciation but are not personally liable for the company's debts.
**Merchant**
> An organization that collects fees and tariffs from end users as a function of the effective demand for the provided service. The organization is mostly or fully exposed to market risks (price and demand risk).
**Public Entity**
> A company that is publicly listed and traded on a recognized stock exchange such as Nasdaq or NYSE.
**Regulated**
> An organization whose business is regulated by government agencies via limits on tariffs, rate of returns, or revenues. Also referred to as discretionary regulation.
**Special Purpose Vehicle (SPV)**
> A subsidiary entity with an asset/liability structure and legal status that makes its obligations secure.
Validation: What evidence is required?
No evidence required.
## Scoring
This indicator is not scored.
***
References
[EDHECInfra - The Infrastructure Company Classification Standards (TICCS™), 2020](https://edhec.infrastructure.institute/paper/the-global-infrastructure-company-classification-standard/)
[IPWEA, International Infrastructure Management Manual, 2015](https://www.ipwea.org/newzealand/bookshop/nzpubs/nzbookshop/2015-iimm-nz)
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