GRESB (Global Real Estate Sustainability Benchmark) is a leading ESG benchmark for real estate and infrastructure investments worldwide. It provides standardized and validated data to assess the sustainability performance of real estate portfolios and investments. A good GRESB rating can boost investor confidence as it shows that the company is actively working towards sustainability and fulfills the ESG criteria. There are also other scoring models that have established themselves on the market, such as S&P Corporate Sustainability Assessment (CSA), MSCI ESG, Sustainalytics ESG Risk Ratings or EPRA certification (European Public Real Estate Association).
All ratings have something in common: proof of green building certification in the portfolio has a consistently positive effect on the rating and thus on the potential procurement of capital.
For this reason, leading real estate companies have established the cross-portfolio implementation of certifications, e.g. according to the internationally established LEED EB:O+M or BREEAM In-use standards.
According to the publication of the relevant associations (as of February 2025), 1,053 buildings in the system variant in existing buildings - exclusively on the German market - were certified according to BREEAM, 110 buildings according to LEED and 24 buildings according to DGNB. The fact that BREEAM is the most popular in this case is certainly due to its ease of use and the very low cost of Part 1 certification.
However, what is often overlooked by asset managers is that, in addition to the certificate, further ESG-relevant measures must be implemented with regard to the requirements of the taxonomy or the rating systems. These are then often commissioned individually in further mandates and therefore also lead to additional costs. If certification and individual awards and their costs are considered together, the apparently favorable BREEAM certificate turns out to be not so favorable. As shown in the figures below, the corresponding additional services are already included in LEED or DGNB systems.
The individual awarding of ESG-relevant measures alone results in additional costs of between 15 and 30 percent, but nobody really notices this.
The use of certification systems to decarbonize and increase the efficiency of existing buildings is a sensible approach. However, it is important to compare the respective scope of services transparently, also with regard to the requirements of the different rating systems. This is because there is sometimes a greater overlap in the required certificates and services included when a specific green building system is selected. If, for example, LEED EB:O+M v4.1 certification includes an energy audit as a minimum criterion, but this would have to be “purchased” as an add-on for BREEAM in Use certification, then this should be taken into account when selecting a system.
Schematic representation of the different criteria of certification systems, here using the example of an energy audit
As an aid, we have compiled an overview of the most common certification systems for the portfolio with the services and costs included in order to facilitate decision-making for individual objectives. We have taken into account registration and certification fees, any portfolio benefits or an integrated continuous improvement process (CIP).
The primary advantage of BREEAM In-Use certification Part 1 is that three minimum criteria can be clarified compactly, quickly and without available data, and high scores can be achieved even without sustainable building operation. However, certification in accordance with BIU Part 2 is mandatory in order to compare the systems and to leverage potential savings during operation, meaning that there is no longer any advantage in terms of overall costs compared to the other two systems.
While the BREEAM perspective is more status-related, the DGNB and LEED systems include an integrated continuous improvement process (CIP). With its ARC performance platform, LEED offers the additional advantage of connecting ESG platforms and rating systems, benchmarking portfolios internally and internationally and making current consumption data available to users live. Although the LEED system is otherwise very portfolio-oriented, only BREEAM and DGNB offer cost benefits for real estate portfolios.
All three certification systems pay into ESG ratings and taxonomy requirements with their verification criteria. It is therefore worth making an in-depth comparison to determine which certification and rating system is the most efficient way to achieve your goals for your portfolio or your properties and at the same time achieve the greatest sustainability impact. Translated with DeepL.com (free version)
Benefits for asset managers in a nutshell:
- Reduction of reactive power through holistic allocation of ESG measures, and thus savings of up to 30 percent.
- Use of a free ARC monitoring platform, which means no further digitization costs for ESG platforms, as resource development and comparative values are already included
- Anchoring an improvement process in PM and FM, so that we not only comply with regulations but also make concrete improvements to building performance
If you would like to delve deeper into the topic, we recommend the interview between our Managing Director, Sebastian Hölzlein, and Kay Killmann, Managing Director of GBCI Europe, about the development and impact of the LEED certification system. Click here for the VIDEO.
Alpha IC GmbH is one of the leading sustainability consultants in the German-speaking world. The company has supported a total of 85 certification projects under the international LEED system in Germany. This corresponds to over 11% of all certifications carried out in Germany (2009 to 2024). Alpha IC has been a LEED BD+C Proven Provider since June 2015.
