Canadian funds and companies maintained regional leadership recognition in the GRESB (Global Real Estate Sustainability Benchmark) 2024 assessment, as the number of Canadian participants rose from 2023.

There are 85 Canadian participants in the 2024 list, five more than last year. Among the Canadian companies, the highest rated include Manulife Investment Management, RioCan Real Estate Investment Trust, KingSett Capital, Cadillac Fairview Corporation and BentallGreenOak.

Organized by the Dutch non-profit GRESB Organization, its annual reports categorize the sustainability performance of assets and portfolios based on self-reported data. Companies in the development, investment and management of real estate and infrastructure are included.

Its benchmark covers almost US$9 trillion in gross asset value across 80 global markets and over 3,000 participants.

Companies are able to choose whether their individual scores are published, and whether to consent to being on a sector leader list of the top performers by sector, region and ownership.

“Over the past 15 years, GRESB has worked closely with investors and managers to shape the conversation around sustainability in real assets,” Sebastien Roussotte, CEO of GRESB, said in a release. “Together, we have set the pace and turned raw data into actionable insights to drive better performance at the fund and asset levels – in terms of environmental sustainability and financial returns.”

Canadian leaders in GRESB

Real Estate – Standing Investment Benchmark

Regional Sector Leaders

• Manulife Investment Management’s Manulife General Account in the diversified – office/industrial asset classes; and
• The Cadillac Fairview Corporation Ltd., for its fund of the same name, in office and retail.

Regional Sector Leaders – Listed

• RioCan Real Estate Investment Trust for its RioCan fund in the retail asset class.

Regional Sector Leaders - Non-listed

• KingSett Capital for its office and residential sector fund CREIF; and
• Manulife Investment Management for its Manulife General Account.

“We are incredibly proud to be recognized as the top performer in our sector for the fourth consecutive year,” Sal Iacono, president and CEO of Cadillac Fairview, said in a release. “This recognition is a testament of our commitment to community transformation and sustainability, driven by our dedicated teams, strong culture, and ongoing efforts to exceed industry standards with purpose and integrity.” 

He attributed the ranking to the company’s efforts to reduce its greenhouse gas emissions, find efficiencies with energy and water usage, and boosting waste diversion while maintaining third-party green building certifications through its Green at Work program.

Though not headquartered in Canada, Brookfield Properties, Harrison Street and LaSalle Investment Management made the cut and have strong ties to the country. Brookfield Properties is a subsidiary of Toronto-based Brookfield Group, while the LaSalle Canada Property Fund and Harrison Street's diversified Canada Alternative Fund were recognized.

LaSalle's Canadian fund includes Maison Manuvie in Montreal that has net-zero carbon performance and the Tricont properties in Whitby, Ont. designed to meet LEED Silver certification, according to a release.

“This latest recognition as a GRESB sector leader reflects LaSalle’s ongoing dedication to meeting our clients’ sustainability goals, while enhancing the market value of our properties," Elena Alschuler, LaSalle's head of sustainability in the Americas, said.

Real Estate – Development Benchmark

The only Canadian company in this category under non-listed Regional Sector Leader is BentallGreenOak for the Sun Life Assurance Company of Canada fund in the diversified sector.

Brookfield made two appearances under Brookfield Asset Management for its mixed-use Brookfield India Real Estate Trust under the Global Sector Leader and Regional Sector Leader subsections.

No Canadian company made the infrastructure benchmark.

Other Canadian participants in GRESB

Though not named as leaders, Toronto-headquartered firms Allied Properties Real Estate Investment Trust and Hazelview Investments have disclosed their GRESB performances.

Allied said it rated above the GRESB average for standing investments and lagged slightly on developments. In the same announcement, Allied disclosed it set short- and long-term greenhouse gas emissions reduction targets in line with the Science Based Targets initiative for its rental and development portfolios. The goals will be submitted for validation in the first half of 2025.

Hazelview said it was first in the Canadian multifamily standing investments category and received GRESB green star status in the development and standing investments benchmarks.

The real estate investment company succeeded in its ambition to green certify all of its $7.2-billion Canadian multifamily portfolio in 2023. As a result, greenhouse gas emissions have been cut by 6.3 per cent, as well as an 8.1 per cent reduction in energy use intensity and 3.4 per cent to water consumption.

Global GRESB shifts

The real estate benchmark that covers approximately 208,000 assets worldwide with a gross asset value of US$7 trillion had average scores of 75.84 for standing investments and 85.76 for development.

GRESB noted net-zero targets are being increasingly adopted in real estate, with 65 per cent of participants establishing such goals as of 2024.

Companies in the Americas were the weakest performers compared to peers in Europe, Asia and Oceania.

For infrastructure, made up of 3,145 assets totalling US$1.6 trillion in gross asset value in 81 markets, approximately 65 per cent of organizations set a net-zero target, rising by about five per cent from 2023.

The Americas fared better in infrastructure than real estate, placing only behind Europe on overall scores for performance and management.