GRESB Approves 2026 Real Estate Standard Prioritising Embodied Carbon and Net Zero

The GRESB Foundation approved 2026 Real Estate Standard updates introducing embodied carbon measurement, stronger net-zero target credibility, and GHG Protocol-aligned emissions reclassification. The changes raise reporting expectations for real estate entities and investors using GRESB as a global ESG benchmark.

The GRESB Foundation approved significant updates to the Real Estate Standard, built on the 2025 framework and taking effect for the 2026 reporting cycle. Embodied carbon receives recognition for measurement and transparency, a major shift in the 2026 Standard. Net-zero targets now demand improved format and credibility, with entities restricted to reporting multiple net-zero targets. Two less-relevant indicators were retired, reducing reporting burden, with their scoring weights reallocated to strengthen performance expectations across reporting entities.

Real estate reporting entities and property investors are directly affected by the methodology changes. GRESB reclassified greenhouse gas emissions from landlord-controlled tenant spaces to Scopes 1 and 2, achieving GHG Protocol alignment and eliminating recurring reconciliation issues across frameworks. The aggregation model was adjusted to incorporate asset-specific ownership periods, correcting previous limitations. Estimation guidelines clarified utility-type-specific data requirements, boosting data accuracy and methodological consistency. The foundation announced a future shift toward asset-level reporting beginning with the 2027 cycle.

Participants should prepare for the 2026 reporting cycle changes, including embodied carbon measurement, revised net-zero target formats, and the Scopes 1 and 2 reclassification of landlord-controlled tenant space emissions. They should review the provided 2026 Simulated Score report for illustrative insights into impacts on future GRESB Scores. Entities should also anticipate the planned 2027 shift toward asset-level reporting, using GRESB's multi-year update process and extended timelines to prepare across affected reporting components.

Key figure — Effective date: GRESB Real Estate Standard changes apply from the 2026 reporting cycle, with asset-level reporting from 2027