# LLM3: Compliance Process

<table data-column-title-hidden data-view="cards" data-full-width="false"><thead><tr><th></th><th></th><th></th><th data-hidden data-card-cover data-type="image">Cover image</th></tr></thead><tbody><tr><td><i class="fa-bullseye">:bullseye:</i> Maximum Score</td><td><strong>2 points</strong></td><td></td><td></td></tr><tr><td><i class="fa-pen-to-square">:pen-to-square:</i> Prefill</td><td><i class="fa-check">:check:</i> <strong>Eligible</strong></td><td></td><td></td></tr><tr><td><i class="fa-shield-check">:shield-check:</i> Validation</td><td><strong>Other answer is manually validated</strong></td><td></td><td></td></tr></tbody></table>

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**Does the lender require a review of the borrower's sustainability-based actions during and/or after completion of property improvements?**

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## Assessment Instructions

<details>

<summary><strong>Intent</strong>: What is the purpose of this indicator?</summary>

Identify lender processes used to evaluate borrower actions during or after property improvements. Participants should select applicable actions, then elaborate on the engagement process used to ensure borrower adherence.

</details>

<details>

<summary><strong>Input</strong>: How do I complete this indicator?</summary>

Select Yes or No. If Yes, please select applicable checkboxes and complete the open text box.

**Open text box:** Description provided should fully support each checkbox selected, along with the following elements:

1. Describe the engagement process with the borrower during the implementation of property improvements.
2. Elaborate on follow-up actions taken after property improvements are completed.

**Other:** Answers provided under 'Other' must be outside the options listed in the indicator to be valid. State the review process or similar adherence actions.

### Terminology

**Design document inspection**

> Procedures that include evaluation and review of design related documents for construction projects and/or tenant fit outs.

**Document review**

> Systematic analysis of financial data, third party reports, and related documentation provided by borrower as part of a loan transaction.

**Energy Rating**

> A scheme that measures the energy efficiency performance of buildings.

**Onsite property visit(s)**

> A process when the lender or a designated third-party checks the property for actions or other changes in accordance with the loan terms.

</details>

<details>

<summary><strong>Validation</strong>: What evidence is required?</summary>

No evidence required. Only the 'Other' answer is manually validated.

#### Other Answer

State which other actions and/or risk factors are considered during regular review.

<a href="/pages/utxKQNLSUKyW8QMeUwEi" class="button primary" data-icon="shield">Validation Basics</a>

</details>

## Scoring

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<details>

<summary><strong>Scoring</strong>: How does GRESB score this indicator?</summary>

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.

<a href="/pages/rseBFLKotMCNp5cMYQSL" class="button primary" data-icon="hundred-points">Scoring Basics</a>

</details>

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