LLE2: Sustainability Objectives

bullseye Maximum Score

2 points

pen-to-square Prefill

checkEligible

shield-check Validation

Evidence not validated


Does the lender have sustainability objectives?

Assessment Instructions

chevron-rightIntent: What is the purpose of this indicator?hashtag

This indicator evaluates how the entity sets clear, measurable objectives to advance sustainability performance. Defining these objectives helps organizations identify their most material issues and integrate sustainability, resilience, and efficiency considerations into everyday management and long-term strategic planning.

chevron-rightInput: How do I complete this indicator?hashtag

Select yes or no. If yes, select all applicable sub-options.

URL: When selecting "Publicly available," it is mandatory to include a hyperlink. The link will only be used for reporting purposes. Ensure that the hyperlink is not outdated and that the relevant page can be accessed within two steps. The URL should demonstrate the existence of publicly available sustainability objectives for each of the objectives selected.

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 the following:

  1. The scope of the objectives. The text should identify key sustainability priorities and issues relevant to the entity. If applicable, explain how these objectives relate to specific elements of the entity’s overall business strategy. Sustainability objectives can relate to quantifiable goals or to strategic developments.

  2. Defined timeframes for objectives. The text should include a description indicating whether the objectives are short-term (one to two years), medium-term (two to three years), or long-term (more than three years).

  3. Explanation of the extent of integration of sustainability objectives with business strategy and next steps to foster further alignment.

Terminology

Energy efficiency

Refers to the works resulting in products or systems using less energy to provide the same consumer benefit.

Environmental objectives

Overall goals arising from policies that an entity sets itself to achieve regarding relevant environmental issues, such as greenhouse gas emissions, renewable energy, or sustainable procurement. These objectives should be quantifiable and correlated with the entity's ambitions. The objectives should be quantifiable and correlated with the entity's ambitions. In turn, they determine targets, which are detailed performance requirements necessary to achieve the environmental objectives.

Governance objectives

Overall goals arising from policies that an entity sets itself to achieve regarding relevant governance issues, such as bribery and corruption, cybersecurity, or board composition. These objectives should be quantifiable and correlated with the entity's ambitions.

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.

Resilience

Preparedness of the built environment towards existing and future climate changes (i.e., 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 tenant, community, suppliers and physical measures at the asset level.

Social objectives

Overall goals arising from policies that an entity sets itself to achieve regarding relevant social issues, such as customer satisfaction, employee engagement, or stakeholder relations. These objectives should be quantifiable and correlated with the entity's ambitions.

Sustainability objectives

Strategic priorities and key topics for the management and/or improvement of sustainability, resilience, and efficiency issues.

chevron-rightValidation: What evidence is required?hashtag

Evidence not validated.

Scoring

chevron-rightScoring: How does GRESB score this indicator?hashtag

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

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

hundred-pointsScoring Basics


Frequently Asked Questions

chevron-rightI don't have documented human capital objectives to report in indicator LLE2. Does this mean I can't answer LLE4?hashtag

No. While LLE2 asks about formal objectives, LLE4 (Sustainability, Climate-related, and/or Human Capital Senior Decision Maker) asks about responsibility. You can still answer LLE4 if you have individuals or senior leaders responsible for human capital matters, even if those responsibilities aren't tied to specific objectives.


chevron-rightReferenceshashtag

EPRA Best Practices Recommendations on Sustainability Reporting, 3rd version, September 2017: 5.7, Analysis

SASB (March 2016)-Real Estate Owners, Developers & Investment Trusts: IF0402-05

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