ARA scored a 91 and earned 5 stars for its ESG performance on the 2021 GRESB Real Estate Assessment. The firm placed 2nd in U.S. Diversified Core Funds and outperformed its peer group average in over 15 scored categories. Their score represents a 14% improvement from 2020 to 2021 on the Standing Investments Benchmark.
“Our GRESB score is a confirmation of ARA’s leadership in ESG+R” said Stanley L. Iezman, Chairman and CEO of ARA. “As we look to the future, we are committed to continuing sustainable policies and practices that provide real value to our investors and that promote a heathier world for all of us.”
The GRESB Assessments are guided by what investors and the industry consider to be material issues in the sustainability performance of asset investments and are aligned with international reporting frameworks, goals, and emerging regulations. The GRESB ESG Benchmarks grew this year to cover more than $6.4 trillion of assets under management, up from $5.3 trillion the year before.
GRESB data is used by hundreds of capital providers and thousands of asset managers to benchmark investments across portfolios and to better understand the opportunities, risks and choices that need to be made as the industry transitions to a more sustainable future. “Across the globe, organizations are demonstrating a deep commitment to ESG integration while making important strides towards a more sustainable future for us all,” said Sebastien Roussotte, CEO of GRESB.
Key ARA accomplishments in 2020 include:
ESG+R PROGRAM
35 million square feet of real estate is actively managed in ARA’s ESG+R program
11 new sustainability best practice policy guides were implemented in 2020
6 existing policies were updated with expanded content in 2020
Environmental Management System (EMS) was aligned with ISO 14001
BENCHMARKING AND REPORTING
8th consecutive core fund GRESB Submission in 2021
United States of America, Diversified, Core
5-star rated in 2021 - 2nd in a peer group of 48
2020 ESG Report published with reference to the GRI index
Continued status as a signatory of Principles for Responsible Investment (PRI)
100% compliance with applicable municipal benchmarking requirements
CERTIFICATIONS
8 new ENERGY STAR® labels earned
4 new IREM certifications earned
3 new LEED certifications earned
COMMUNICATION AND EDUCATION
Weekly sustainability update with the ESG+R Committee Advisors
Annual Company-wide ESG+R program overview with ARA staff completed virtually
Virtual Energy, Water, and Waste Awareness campaigns
Digital Earth Day event
Learn more about ARA’s sustainability program in their 2020 Annual Report.
About American Realty Advisors
ARA is a premier investment manager of institutional quality commercial real estate portfolios focused on providing superior risk-adjusted returns. ARA is privately held with more than 500 investors and $10.7 billion in assets under management. ARA is headquartered in Los Angeles, CA, with additional offices in Chicago, New York, Orlando, Philadelphia, and San Francisco.
For more information, visit https://www.aracapital.com
About Verdani
Verdani Partners is a leading full-service consulting firm with over 20 years of experience in sustainability and ESG for real estate. Verdani currently manages ESG programs for 13 national and international real estate firms with over 4,000 properties across 900 million SF of diversified real estate portfolios, representing over $400 billion AUM.
Verdani is a GRESB Premier Partner and member of the GRESB Benchmarking Committee that manages GRESB reporting. Verdani also produces annual sustainability reports for some of the nation’s top real estate firms. The certification experts at Verdani oversee a wide range of certification systems for clients, such as Fitwel, LEED, ENERGY STAR, USGBC’s Arc Platform, WELL, Green Globes, BREEAM, IREM and more. Verdani’s corporate ESG, green building certifications, technical services, communications department and educational programs bring an impressive breadth of expertise to each portfolio and project. For more information visit https://www.verdani.com
About GRESB
GRESB is a mission-driven and industry-led organization providing standardized and validated Environmental, Social and Governance (ESG) data to financial markets. Established in 2009, GRESB has become the leading ESG benchmark for real estate and infrastructure investments across the world, used by 140 institutional and more than 2,200 fund managers, companies and asset operators to improve decision-making.
The Assessment is shaped by what investors and the industry consider to be material issues in the sustainability performance of real estate investments. The methodology is consistent across regions, investment vehicles and property types, while aligning with international reporting frameworks.
In 2021, more than 1,500 property companies, REITs, funds and developers participated in the Real Estate Assessment, representing $5.7 trillion in assets under management. The Assessment covers nearly 117,000 assets across 66 countries.
Learn more at www.GRESB.com