ESG

How the 2025 GRESB Updates Impact Energy, Net Zero, and ESG Performance

GRESB has announced its 2025 Real Estate Standard updates, bringing key changes that will affect scoring and data collection across a variety of indicators, including energy efficiency, renewable energy, embodied carbon, and ESG-related performance. These updates reinforce the shift toward performance-based assessment, rewarding operational efficiency and laying the groundwork for future renewable energy and embodied carbon scoring.

With the 2025 assessment portal opening in just a few short weeks, here’s what real estate owners and operators need to know as we head into the upcoming reporting season.

New Recognition for Energy Efficiency

GRESB is now formally scoring energy efficiency, ensuring that highly efficient assets receive credit—regardless of year-over-year improvements. Previously, properties were evaluated based on like-for-like energy reduction, meaning that already efficient buildings could struggle to score well if they had little room for further improvement. This change allows entities to gain recognition for operational excellence in energy efficiency and will position them favorably against less efficient peers. This change will impact 2025 scoring – meaning organizations with efficient assets can expect to see score increases this year.

Renewable Energy: Expanded Data Collection

GRESB is increasing transparency around renewable energy procurement by aligning data collection with RE100 guidelines. New reporting fields will require participants to specify:

Procurement type (e.g., on-site generation, physical PPAs, retail contracts, or default grid-supplied renewable energy)
Market-based claims (bundled vs. unbundled certificates)
Proximity of generation to consumption
Vintage of energy procurement (whether the energy was generated in the same year as consumption)

While these new disclosures will not impact scoring in 2025, they are expected to inform future scoring mechanisms, rewarding entities that prioritize high-quality renewable energy procurement.

Embodied Carbon: Testing for Future Scoring

GRESB is introducing new criteria for embodied carbon measurement, a crucial step in addressing the full lifecycle impact of real estate. The 2025 standard will require entities to report on embodied carbon emissions for development projects but will not yet incorporate these disclosures into scoring. However, by 2026, embodied carbon measurement and disclosure will begin to affect scores, incentivizing proactive measurement and mitigation strategies.

Building Certifications: New Data Collection for Future Differentiation

GRESB is refining how it evaluates building certifications by introducing new data collection requirements. While there is no impact on scoring in 2025, the goal is to differentiate certifications based on scope, prerequisites, and overall quality. This could affect how green certifications contribute to ESG performance and investor perception in the future. A rolling list of recognized building certification schemes will be published mid-year, with an updated list available at the end of 2025.

Biodiversity & Nature: A New Experimental Indicator

GRESB has introduced an unscored biodiversity indicator to align with emerging frameworks like the Taskforce on Nature-related Financial Disclosures (TNFD). This will require participants to report on biodiversity-related risks, dependencies, and strategies. Though it won’t impact scores immediately, this addition signals a growing emphasis on nature-based risks within real estate ESG assessments.

Residential Real Estate: A Sector-Specific Scoring Framework

GRESB is piloting a supplemental scoring framework for residential real estate, acknowledging that certain ESG criteria apply differently to this sector. Entities with residential portfolios will now see tailored metrics and weightings, which could influence how they prioritize sustainability initiatives.

The residential sector updates introduce new indicators and weight adjustments, covering aspects such as:

Fair Housing Attribution: A new unscored indicator assessing whether fair and equitable housing allocation practices are in place.
Local Infrastructure & Community Livability: Entities must report on walkability and access to essential services.
Community Safety & Crime Monitoring: Requires reporting on crime levels near residential properties and associated risk mitigation measures.
Affordability & Affordable Housing: Collects data on affordability strategies and the proportion of affordable housing units within a portfolio.
ESG in Lease Agreements: Introduces a scored element to assess the integration of ESG clauses in residential lease contracts.

These updates help ensure that the unique characteristics of residential real estate are reflected in GRESB’s scoring and reporting. The introduction of affordability and livability indicators also signals a shift towards a more holistic ESG evaluation for residential assets.

Stricter Evidence & Validation for Climate-Related Risks

GRESB is refining its validation process for climate risk assessments, including clearer guidance on acceptable evidence for climate-related risks and mitigation strategies. This will help standardize reporting quality across participants and may lead to stricter accountability in future assessments.

Evidence Submission for Net Zero Targets

GRESB is increasing scrutiny around net zero targets, requiring participants to submit supporting documentation for claims. While this requirement won’t impact scoring in 2025, it signals a shift toward more rigorous validation, ensuring that net zero commitments are backed by verifiable data.

What This Means for Real Estate Owners and Operators

These updates highlight a clear trajectory: GRESB is moving toward a performance-based model that prioritizes real, measurable reductions in energy use, emissions, and embodied carbon. Organizations with efficient portfolios will see immediate scoring benefits, while those lagging in renewable energy procurement and embodied carbon measurement should prepare for future accountability.

To stay ahead, real estate owners should:

Implement and measure energy efficiency improvements to maximize scoring potential
Ensure net zero targets are backed by clear, auditable evidence
Strengthen renewable energy procurement strategies with high-quality, location-matched sources
Begin measuring embodied carbon in development projects to prepare for future scoring changes
Align ESG reporting strategies with new biodiversity and sector-specific indicators
Monitor upcoming changes in building certification assessments

GRESB’s 2025 updates reinforce that ESG performance isn’t just about intent—it’s about results. By taking action now, organizations can position themselves as leaders in sustainability while optimizing their scores in the evolving GRESB framework.

About Noda

Noda is a data and analytics company on a mission to make every building smarter, more efficient, and more sustainable. Recently ranked in the top 10 tech companies leading the charge on climate action, its AI-powered suite of products surface unique insights that empower real estate teams to reduce costs, decrease time spent on routine work, and find and act on opportunities to save energy and carbon. Discover how Noda's solutions can unlock the potential of your assets and accelerate the transition to net zero. Visit us at noda.ai to learn more.