# Risk Assessment The **Risk Assessment** aspect identifies the entity's efforts to evaluate environmental and social risks to its operational assets. It examines the processes in place to support effective implementation, strengthen resilience, and prevent issues that could affect long-term performance. *** {% stepper %} {% step %} ## RRM3.1: Social Risk Assessments


Max Score	0.25 Points
Validation	Evidence and Other Answer are Manually Validated

**Has the entity performed social risk assessment(s) within the last three years?**

#### Assessment Instructions

Intent: What is the purpose of this indicator?

This indicator identifies the variables included in the entity’s social risk assessments. Risk assessments refer to the identification and quantification of processes, systems and/or scenarios that could potentially cause harm to the entity and its underlying investors. It is important that entities monitor their exposure to social-related risks, as these can negatively impact reputation and expose the entity to civil and criminal penalties. RRM3.1 asks whether certain social issues are assessed in a risk assessment by the entity, which is different from the existence of social policies ([RPO2](/fundamentals/completing-the-assessment/fundamentals-guidance/policies.md#rpo2-social-policies)).

Input: How do I complete this indicator?

Select yes or no. If yes, select all applicable sub-options. ### **Terminology** **Child labor** > Work that children should not be doing because they are too young, or, if they have reached the minimum age, because it is dangerous or otherwise unsuitable for them. **Community development** > Actions to minimize, mitigate, or compensate for adverse social and/or economic impacts, and/or to identify opportunities or actions to enhance positive impacts on individuals/groups living or working in areas that are affected/could be affected by the organization's activities. **Controversy** > A prolonged public disagreement or heated discussion. **Customer satisfaction** > Customer satisfaction is one measure of an entity's sensitivity to its customers’ needs and preferences and, from an organizational perspective, is essential for long-term success. In the context of sustainability, customer satisfaction provides insight into how the entity approaches its relationship with one stakeholder group (customers). **Human capital** > Human capital refers to the knowledge, culture, skills, experience, and overall contributions of an organization’s workforce. It encompasses strategies for fairly attracting, developing, and retaining talent, fostering a productive and engaged workplace, and ensuring fair and effective workforce management. Many organizational approaches can contribute to human capital objectives, including talent development & advancement; skills-based hiring & development; and diversity, equity, and inclusion. **Employee engagement** > An employee's involvement with, commitment to, and satisfaction with the entity. **Employee health & well-being** > The health & well-being of employees responsible for the entity. **Forced or compulsory labor** > All work or service which is expected from any person under the menace of any penalty and for which the said person has not offered himself voluntarily. **Freedom of association** > Right of employers and workers to form, to join and to run their own organizations without prior authorization or interference by the state or any other entity. **Health & safety: community** > The health & safety of the community surrounding the entity. **Health and safety: contractors** > The health and safety of the entity's contractors. **Health and safety: employees** > The health and safety of employees responsible for the entity. **Health & safety: tenant/customer** > The health & safety of tenants and customers of the entity. **Human rights** > Human rights are rights inherent to all human beings, whatever their nationality, place of residence, sex, national or ethnic origin, color, religion, language or any other status. **Labor standards and working conditions** > Labor standards and working conditions are at the core of paid work and employment relationships. Working conditions cover a broad range of topics and issues, from working time (hours of work, rest periods, and work schedules) to remuneration, as well as the physical conditions and mental demands that exist in the workplace. **Policy** > Defines a commitment, direction or intention as formally adopted by the entity. **Social enterprise partnering** > Entity’s partnerships with organizations that have social objectives which serve as the primary purpose of the organization. **Stakeholder relations** > Stakeholder relations is the practice of forging mutually beneficial connections with third-party groups and individuals that have a stake in common interest.

Validation: What evidence is required?

#### Evidence The provided evidence must: * Confirm that a social risk assessment was conducted and clearly present the outcomes of the risk assessment. * Include all elements of the risk assessment process aligned with the ISO 31000 Risk Management standard, including risk identification, analysis, evaluation, and treatment, for all selected social issues, highlighting or bringing attention to these where possible. * Include all selected social issues within the assessment, highlighting or bringing attention to these where possible. * Relate to an assessment that has taken place within the last three years, up to and including the end of the reporting year identified in EC4. Evidence examples may include, but are not limited to: * Documents or sections of documents, in their original or redacted form, such as: * Corporate risk registers * Social aspects and impacts registers * H\&S inspections and audits * Employee surveys * Monitoring reports * Annual reports * Social impact assessments * Social management plans/reports * Meeting minutes or company presentations * Procedure or process document(s) (e.g., from a risk management system) when supported with documentation that details the outcome of the risk assessment for selected issues. #### **Other Answer** State the other system or procedure in place. Ensure that the other answer provided is not a duplicate of a selected option above (e.g., Anti-bribery training when 'Training related to governance risks for employees' is selected). It is possible to report multiple other answers. If multiple other answers are acceptable, only one will be counted towards scoring Validation Basics

#### 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:** The evidence is manually validated and assigned a multiplier, according to the table below. The evidence must support the validation requirements. If any requirements are not met, the evidence may be partially accepted or not accepted depending on the level of alignment with the requirements. | Validation status | Multiplier | | ------------------ | ---------- | | Accepted | 2/2 | | Partially Accepted | 1/2 | | 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 | 1/1 | | Not Accepted | 0 | | Duplicate | 0 | Scoring Basics

*** {% endstep %} {% step %} ### RRM3.2: Governance Risk Assessments


Max Score	0.25 Points
Validation	Evidence and Other Answer are Manually Validated

**Has the entity performed governance risk assessments within the last three years?**

#### Assessment Instructions

Intent: What is the purpose of this indicator?

This indicator identifies the variables included in the entity’s governance risk assessments. Risk assessments refer to the identification and quantification of processes, systems, and/or scenarios that could potentially cause harm to the entity and its underlying investors. It is important that entities monitor their exposure to governance-related risks, as these can negatively impact reputation and expose the entity to civil and criminal penalties. RRM3.2 asks whether certain governance issues are assessed in a risk assessment by the entity, which is different from the existence of governance policies ([RPO3](/fundamentals/completing-the-assessment/fundamentals-guidance/policies.md#rpo3-governance-policies)).

Input: How do I complete this indicator?

Select yes or no. If yes, select all applicable sub-options. #### Terminology **Bribery** > The offering, giving, receiving or soliciting an item of value to influence the actions of an official or other person in charge of a public or legal fiduciary duty. **Corruption** > Abuse of entrusted power for private gain. **Cyber security** > Protection from an assault by a third party via a computer against another computer or computer system, which is intended to compromise the integrity, availability or confidentiality of that computer or computer system. **Data protection and privacy** > Customer privacy includes matters such as the protection of data; the use of information or data for their original intended purpose only, unless specifically agreed otherwise; the obligation to observe confidentiality; and the protection of information or data from misuse or theft. **Executive compensation** > The financial payments and non-monetary benefits provided to high-level management in exchange for their work on behalf of an entity. **Fiduciary duty** > Refers to the obligations of loyalty and care in regard to the responsibility of managing someone else’s assets. A fiduciary duty is a position of trust and examples include a duty of confidentiality, a duty of no conflict, and a duty not to profit from his position. **Forced or compulsory labor** > All work or service which is expected from any person under the menace of any penalty and for which the said person has not offered himself voluntarily. **Fraud** > Wrongful deception intended to result in financial or personal gain. **Governance issues** > Governance structure and composition of the entity. This includes how the highest governance body is established and structured in support of the entity’s purpose, and how this purpose relates to economic, environmental and social dimensions. **Political contributions** > Financial or in-kind support given directly or indirectly to political parties, their elected representatives, or persons seeking political office. **Shareholder rights** > Can include the right to share in the company's profitability, income, and assets; a proxy statement; a degree of control and influence over company management selection; preemptive rights to newly issued shares; and general meeting voting rights.

Validation: What evidence is required?

#### Evidence The provided evidence must include the following elements: * Confirm that a governance risk assessment was conducted and clearly present the outcomes of the risk assessment. * Covers all elements of the risk assessment process aligned with the ISO 31000 Risk Management standard, including risk identification, analysis, evaluation, and treatment, for all selected governance issues, highlighting or bringing attention to these where possible. * Include all selected governance issues within the assessment, highlighting or bringing attention to these where possible. * Relate to an assessment that has taken place within the last three years, up to and including the end of the reporting year identified in EC4. Evidence examples may include, but are not limited to: * Documents or sections of documents, in their original or redacted form, such as: * Corporate risk registers * Governance-specific risk register or a section of a governance, Board, ethics, cybersecurity plan/report * H\&S inspections and audits * Impact registers * Corporate/Governance internal audits * Monitoring reports * Annual reports * Meeting minutes or company presentations * Procedure or process document(s) (e.g., from a risk management system) when supported with documentation that details the outcome of the risk assessment for selected issues. {% hint style="info" %} **Note:** If certain governance issues are embedded in law and/or regulation in the countries of operation, the entity may select the issue and provide evidence that references the specific law or regulation and how it has been complied with. {% endhint %} #### **Other Answer** State the other governance issue. Ensure that the other answer provided is not a duplicate of a selected option above (e.g., data confidentiality when ‘data protection and privacy is selected). It is possible to report multiple other answers. If multiple other answers are acceptable, only one will be counted towards scoring. Validation Basics

#### Scoring

Scoring: How does GRESB score this indicator?

*** {% endstep %} {% step %} ### RRM4.1: Sustainability Due Diligence for New Acquisitions


Max Score	0.25 Points
Validation	Other Answer is Manually Validated

{% endstep %} {% step %} **Does the entity perform asset-level environmental and/or social risk assessments as a standard part of its due diligence process for new acquisitions?**

#### Assessment Instructions

Intent: What is the purpose of this indicator?

This indicator assesses whether the entity conducts environmental or social risk assessments at the asset level as a standard part of due diligence for new acquisitions. These assessments help reduce exposure to long-term sustainability risks and demonstrate a proactive approach to identifying issues that may affect asset performance, returns, and the overall quality of the portfolio.

Input: How do I complete this indicator?

Select yes or no. If yes, select all applicable sub-options. #### Terminology **Biodiversity and habitat** > Issues related to wildlife, endangered species, ecosystem services, habitat management, and relevant topics. Biodiversity refers to the variety of all plant and animal species. Habitat refers to the natural environment in which these plant and animal species live and function. **Building Safety** > Environmental issues with the potential to create or exacerbate risks to human safety. Examples of building safety topics include fire safety, structural safety, and electrical and gas safety during development. Building safety strategies can include, but are not limited to, having site inspections at key construction milestones, having a reporting system in place for recording building safety observations, and having designated personnel to oversee building safety compliance during development. **Climate change adaptation** > Preparation for long-term change in climatic conditions or climate related events. Examples of climate change adaptation measures can include, but are not limited to: building flood defenses, xeriscaping and using tree species resistant to storms and fires, adapting building codes to extreme weather events. **Compliance with regulatory requirements** > Examples include, but are not limited to: mandatory energy/carbon disclosure schemes, changes in taxes e.g. carbon tax, extreme volatility in energy prices due to regulation, zoning. **Contaminated land** > Land pollution which may require action to reduce risk to people or the environment. As an example, contamination can be assessed through a Phase I or II Environmental Site Assessment. **Due diligence process** > The process through which a potential acquirer evaluates a target asset for an acquisition, contributing to well-informed investment decision-making. **Energy efficiency** > Refers to the works resulting in products or systems using less energy to provide the same consumer benefit. **Energy supply** > Availability of conventional power (generated by the combustion of fuels: coal, natural gas, oil) or renewable energy (e.g. sun, wind, water, organic plant and waste material). **Environmental risks** > Impact on living and non-living natural systems, including land, air, water and ecosystems. This includes, but is not limited to biodiversity, transport and product and service-related impacts, as well as environmental compliance and expenditures. **Greenhouse gas emissions** > GHGs refers to the seven gases listed in the GHG Protocol Corporate Standard: carbon dioxide (CO₂); methane (CH₄); nitrous oxide (N₂O); hydrofluorocarbons (HFCs); perfluorocarbons (PFCs); nitrogen trifluoride (NF₃) and sulfur hexafluoride (SF₆). They are expressed in CO₂ equivalents (CO₂e). **Employee health & well-being** > The health & well-being of employees responsible for the entity. **Indoor environmental quality** > Refers to the conditions inside the building. It includes air quality, access to daylight and views, pleasant acoustic conditions and occupant control over lighting and thermal comfort. **Natural hazards** > Naturally occuring physical phenomena that have the potential to cause serious disruptions to the functioning of a community. Natural hazards can be geophysical, hydrological, climatological, meteorological, or biological. Examples include but are not limited to earthquakes, wildfires, hurricanes, and droughts. **Risk assessment** > Careful examination of the factors that could potentially adversely impact the value or longevity of a real estate asset. The results of the assessment assist in identifying measures that have to be implemented in order to prevent and mitigate the risks. **Socio-economic risks** > Impact on social well-being, livelihoods and prosperity of local communities and individuals. Examples include: economic/political instability, social housing, vulnerability to pandemics and epidemics, crime and vandalism, and the displacement of people. **Transportation risks** > Risks associated with transportation around the location of a building in relation to pedestrian, bicycle and mass-transit networks, in context of the existing infrastructure and amenities in the surrounding area. **Waste management** > Issues associated with hazardous and non-hazardous waste generation, reuse, recycling, composting, recovery, incineration, landfill and on-site storage. **Water efficiency** > Refers to the conservative use of water resources through water-saving technologies to reduce consumption. **Water supply** > Provision of surface water, groundwater, rainwater collected directly or stored by the entity, waste water from another organization, municipal water supplies or other water utilities, usually via a system of pumps and pipes.

Validation: What evidence is required?

No evidence required. Only the 'Other' answer is manually validated. #### **Other Answer** State the other risk factor assessed. Ensure that the other answer provided is not a duplicate of a selected option above (e.g., seismic assessments when ‘Natural hazards’ is selected). It is possible to report multiple other answers. If multiple other answers are acceptable, only one will be counted towards scoring. Validation Basics

#### 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. **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 | 1/1 | | Not Accepted | 0 | | Duplicate | 0 | Scoring Basics

{% endstep %} {% step %} ### RRA1: Risk Assessments for Standing Investments


Max Score	3 Points
Validation	Evidence and Other Answer are Manually Validated

**Has the entity performed asset-level environmental and/or social risk assessments of its standing investments during the last three years?**

#### Assessment Instructions

Intent: What is the purpose of this indicator?

This indicator identifies whether the entity has performed environmental and/or social risk assessments on its standing investments over the last three years. These assessments demonstrate an active commitment to sustainability management, help mitigate risks that could negatively impact returns, and support a forward-looking approach to portfolio development.

Input: How do I complete this indicator?

Select yes or no. If yes, select all applicable sub-options. **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: 1. **Risk exposure:** Describe the methodology used to identify the main risks to which the entity is exposed, as identified above. 2. **Level of implementation:** Identify the parties included in the assessment, e.g., employees, business partners, suppliers, contractors and subcontractors, and other third parties, etc 3. **Risk mitigation:** Describe the actions taken to mitigate the identified risks. The description can refer to actions taken to: 1. Mitigate the cause of the identified risks (e.g., policies for CO2 reduction to reduce pollution, and thus minimizing exposure to carbon taxes); 2. Mitigate the effects of the identified risks (e.g., policies for protection of the central plant against flooding risk). 4. **Follow-up procedure:** Describe the procedure employed if the identified risks occur. ### Terminology **Biodiversity and habitat** > Issues related to wildlife, endangered species, ecosystem services, habitat management, and relevant topics. Biodiversity refers to the variety of all plant and animal species. Habitat refers to the natural environment in which these plant and animal species live and function. **Building safety and materials** > Environmental issues with the potential to create or exacerbate risks to human safety. Examples of building safety topics include fire safety, structural safety, and electrical and gas safety during development. Building safety strategies can include, but are not limited to, having site inspections at key construction milestones, having a reporting system in place for recording building safety observations, and having designated personnel to oversee building safety compliance during development. **Climate change adaptation** > Preparation for long-term change in climatic conditions or climate related events. Examples of climate change adaptation measures can include, but are not limited to: building flood defenses, xeriscaping and using tree species resistant to storms and fires, adapting building codes to extreme weather events. **Contaminated land** > Land pollution which may require action to reduce risk to people or the environment. As an example, contamination can be assessed through a Phase I or II Environmental Site Assessment. **Energy efficiency** > Refers to the works resulting in products or systems using less energy to provide the same consumer benefit. **Energy supply** > Availability of conventional power (generated by the combustion of fuels: coal, natural gas, oil) or renewable energy (e.g. sun, wind, water, organic plant and waste material). **Flooding** > Refers to a rising and overflowing of a body of water especially onto normally dry land often caused by heavy rain, flash flooding, or sea level rise. **Greenhouse gas emissions** > GHGs refers to the seven gases listed in the GHG Protocol Corporate Standard: carbon dioxide (CO₂); methane (CH₄); nitrous oxide (N₂O); hydrofluorocarbons (HFCs); perfluorocarbons (PFCs); nitrogen trifluoride (NF₃) and sulfur hexafluoride (SF₆). They are expressed in CO₂ equivalents (CO₂e). **Health and well-being** > “Health is a complete state of physical, mental and social well-being, not merely the absence of disease or infirmity” (WHO). Health & well-being is impacted by genetics and individual behavior as well as environmental conditions. Particularly relevant to GRESB stakeholders are the social determinants of health, which are the “conditions in which people are born, grow, work, live and age, and the wider set of forces and systems shaping the conditions of daily life.” These are the conditions that enable or discourage healthy living. This could include issues such as physical activity, healthy eating, equitable workplaces, maternity and paternity leave, access to healthcare, reduction in toxic exposures, etc. **Indoor environmental quality** > Measures of indoor environmental quality including measures of air quality, thermal comfort, acoustics, and lighting. **Natural hazards** > Naturally occurring physical phenomena that have the potential to cause serious disruptions to the functioning of a community. Natural hazards can be geophysical, hydrological, climatological, meteorological, or biological. Examples include but are not limited to earthquakes, wildfires, hurricanes, and droughts. **Regulatory risks** > Examples include, but are not limited to: mandatory energy/carbon disclosure schemes, changes in taxes e.g. carbon tax, extreme volatility in energy prices due to regulation, zoning. **Resilience to catastrophe/disaster** > Preparedness of the built environment towards existing and future threats of natural disaster (e.g., the ability to absorb disturbances such as increased precipitation or flooding while maintaining its structure). This can be achieved by management policies, informational technologies, educating tenants, communities, suppliers and physical measures at the asset level. **Risk assessment** > Careful examination of the factors that could potentially adversely impact the value or longevity of a real estate asset. The results of the assessment assist in identifying measures that have to be implemented in order to prevent and mitigate the risks. **Socio-economic risks** > Impact on social well-being, livelihoods and prosperity of local communities and individuals. Examples include: economic/political instability, social housing, vulnerability to pandemics and epidemics, crime and vandalism, and the displacement of people. **Transportation risks** > Risks associated with transportation around the location of a building in relation to pedestrian, bicycle and mass-transit networks, in context of the existing infrastructure and amenities in the surrounding area. **Waste management** > Issues associated with hazardous and non-hazardous waste generation, reuse, recycling, composting, recovery, incineration, landfill and on-site storage. **Water efficiency** > Refers to the conservative use of water resources through water-saving technologies to reduce consumption. **Water supply** > Provision of surface water, groundwater, rainwater collected directly or stored by the entity, waste water from another organization, municipal water supplies or other water utilities, usually via a system of pumps and pipes.

Validation: What evidence is required?

#### Evidence Requirements coming soon. #### Other Answers **Other issue:** State the other risk factor assessed. It is possible to report multiple other answers. If multiple other answers are acceptable, only one will be counted towards scoring. **Other standard:** State the other alignment standard. Validation Basics

#### Scoring

Scoring: How does GRESB score this indicator?

{% endstep %} {% endstepper %} ## Get Support: Solution Providers GRESB Solution Providers deliver specialized products, tools, and services to improve sustainability performance outside the Assessment process. The organizations below deliver solutions that help drive improvement for this indicator. GRESB will continue to update this section as the GRESB Solution Provider network grows. Please check back regularly to find GRESB Solution Providers who can support your sustainability performance.

	Cover image
See Directory Profile	/files/FfWwJHNiCqR2oy0ZHTZC
See Directory Profile	/files/q6aqR8ohLOCr1nfMg9ao

--- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://guides.gresb.com/fundamentals/completing-the-assessment/fundamentals-guidance/risk-assessment.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.