Canadian real estate companies made incremental progress in the latest Global Real Estate Sustainability Benchmark (GRESB) despite political and economic headwinds, though the number of participants declined.

The Netherlands-based foundation that manages the benchmark provided Canada-specific data to Sustainable Biz Canada. The nationwide average for the standing investment score, an overall grade for the performance of the company’s building portfolio and management practices, was 76.87 in 2025. It climbed from 75.06 the year prior.

However, it came just below the global average of 79 points in 2025, which increased by 3.1 points from 2024.

Also compared to 2024, fewer Canadian companies participated in the benchmark. In 2024, 85 companies were involved. In 2025, there were 78, falling behind even 2023 when 80 entities submitted their data for analysis.

Progress on key metrics was made by GRESB participants despite global-scale obstacles. In a video accompanying the results, Chris Pyke, the chief innovation officer of GRESB, listed several of the barriers. Investment into the real estate sector took a hit from the sharp downturn of capital in 2023 and 2024. There were also “profound and in some ways, unprecedented, levels of uncertainty,” he said.

Another hurdle was an attack on sustainability efforts. A 2024 GlobeScan survey Pyke cited found 57 per cent of sustainability experts around the world reported a “significant backlash” against the sustainability agenda in their country. North American respondents led the survey — 83 per cent said they were witnessing significant backlash.

GRESB publishes annual reports tracking the sustainability performance of the real estate and infrastructure sectors. For its latest report, approximately 500,000 buildings in 76 markets were assessed.

Canadian companies show small gains

The Canadian cohort data provided by GRESB shows overall gains in the subcategories that make up the performance and management components of the standing investment score. GRESB does not publish complete lists of individual company data, instead allowing participating firms to determine whether to make their scores and rankings public.

For performance, there were improvements in aspects such as risk assessment, targets, building certifications and energy compared to 2024. But there were declines as well, such as the score for greenhouse gas emissions that dipped from 75.2 per cent in 2024 to 72.8 per cent in 2025.

On the management side, scores for all five aspects increased from last year. Those include leadership, policies and reporting.

Data coverage for energy, greenhouse gas emissions, water and waste among the Canadian participants all increased from 2024 to 2025, matching a global trend. GRESB said it reinforces “how managers are building the foundation for performance improvement.”

Canadian companies achieved general progress on three net-zero categories that track targets, commitments and policies.

For example, 73 per cent of Canadian real estate companies reported having net-zero policies in place in the 2025 data, compared to 70.6 per cent in 2024. The biggest rise was seen in target-setting, increasing by approximately 10 percentage points year-over-year to 62 per cent in 2025.

However, the Canadian cohort fell below the global average for the net-zero categories in 2025.

Just under 62 per cent reported having a net-zero target, compared to the global average of 66 per cent. Approximately 44 per cent of Canadian GRESB participants had a net-zero commitment, compared to almost 59 per cent of the global GRESB average. Over 80 per cent of the global GRESB participants said they have net-zero policies, compared to 73 per cent of Canadian companies.

GRESB said a list of companies that topped its ranking, known as sector leaders, will be announced soon. However, a few Canadian companies have disclosed their scores.

‘Focused on the long-term’ and leveraging GRESB insights

Allied Properties REIT was one of the Canadian companies that publicized its GRESB results. The Toronto-based owner and developer primarily of office properties said it received a score of 87 for its standing investments.

Allied attributed the above-average score to the efforts it made to reduce greenhouse gas emissions and bring down its energy and water consumption. Another factor was certifying more of its portfolio under standards such as LEED and BOMA BEST.

”As owner-operators of real estate, we’re focused on the long-term, which means that sustainability isn’t a trend, but rather a responsibility,” Cecilia Williams, president and CEO of Allied, said.

Toronto-based Hazelview Investments Inc. received a score of 83 for standing investments. The company also said it took first place in the Canadian multifamily standing investments group for the second consecutive year.

Hazelview maintained green building certifications for its entire Canadian multifamily portfolio in 2024. It also invested in building improvements such as automation systems, high-efficiency boiler retrofits and LED lighting upgrades.

“Looking ahead, we will continue to leverage GRESB insights to implement best practices and enhance the value we create for both people and places,” Colleen Krempulec, managing director and head of sustainability at Hazelview, said in a release.