CICT loses its top ranking in global ESG benchmark for real estate

[SINGAPORE] CapitaLand Integrated Commercial Trust (CICT) has slipped from its top position as sector leader in a well-tracked environmental, social and governance (ESG) benchmark for real estate in its 2025 ranking.

Still, the real estate investment trust (Reit) still achieved a five-star rating for standing investments in this year’s Global Real Estate Sustainability Benchmark (GRESB) rankings, published on Tuesday (Oct 21) evening.

It received the same rating last year, when it was recognised as a global sector leader among listed entities in the standing investments benchmark’s diversified category.

The standing investments benchmark looks at how well property companies and Reits manage their portfolios containing buildings that are in operation.

Besides CICT, CapitaLand China Trust (CLCT) and CapitaLand India Trust (Clint) also maintained their five-star ratings under the same benchmark.

CapitaLand Investment (CLI), CapitaLand Ascott Trust (Clas) and CapitaLand Ascendas Reit each achieved a four-star rating.

Clas was recognised as a sector leader even though its rating is lower than CICT as it falls under the hotel category. This is the fifth consecutive year it has topped the ranking.

CLI said in an earlier release that the parent company and its listed Reits achieved improvements in their GRESB scores and achieved an “A” rating for public disclosure.

Over in the diversified category, Frasers Logistics and Commercial Trust and Hongkong Land also maintained their positions as global sector leaders. Both achieved the same recognition in last year’s GRESB rankings.

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GRESB – which is used by more than 170 institutional and financial investors to inform decision-making, including interest-rate savings from sustainability-linked loans – ranks entities yearly based on two benchmarks.

Besides the standing investments benchmark, the other is known as the development benchmark, which assesses portfolios with new uncompleted constructions and significant renovation projects.

Under the development benchmark, Hongkong Land was recognised as a global sector leader in the diversified category; this is the third consecutive year the property developer has achieved this.

While CICT fell in this year’s GRESB rankings, it will still be able to receive interest-rate savings on its sustainability-linked loans that have GRESB performance as part of their sustainability key performance indicators (KPIs).

CLI, Clas and Clint will also get similar discounts; these loans are debt instruments that offer borrowers lower interest rates if they are able to meet pre-defined KPIs.

Vinamra Srivastava, chief sustainability and sustainable investments officer at CLI, said the company and its related entities’ ranking reflects their commitment to embedding sustainability across the fund-management life cycle, from product development, capital raising and investments to asset and portfolio management.

“By aligning sustainability with financial performance, we create tangible long-term value for our investors, including redeploying interest rate savings into sustainability initiatives,” he added.

As for Frasers Property and its related companies, the group said on Wednesday that a majority of its participating entities achieved scores above GRESB’s global average.

Besides FLCT, Frasers Property Singapore was recognised as a global sector leader under the residential category among non-listed companies in the development benchmark. Its Vietnam entity achieved the same over in the industrial category. All three businesses achieved five-star ratings.

Overall, seven of Frasers Property’s business entities were ranked among the top 20 per cent of all real estate companies rated by GRESB. The other four are Frasers Property Australia, Frasers Property Industrial’s Australia portfolio, Frasers Property UK and Frasers Centrepoint Trust .

Zheng Wanshi, chief strategy and sustainability officer of Frasers Property , said their improved performance reflects the group’s ongoing efforts to strengthen sustainability integration across its portfolio.

“It also affirms our commitment to creating enduring value for the long term, in alignment with the expectations of forward-looking investors and capital partners,” she added.

“We recognise that sustainability is a growing consideration in investor decision-making, especially when prioritising assets and companies that are resilient and aligned to global sustainability standards.”

While Frasers Property did not directly state that its entities would achieve interest-rate savings as a result of their GRESB performance, the group said the rankings play an important role in its sustainable financing efforts, as they enable access to more favourable terms or pricing if they perform better.

Asset manager Keppel also said in an earlier release that two of its Reits – Keppel Reit and Keppel DC Reit – achieved higher GRESB scores and retained their ratings, although it did not specify the ratings they achieved.

These Reits also retained their green star designations, which recognise entities with commendable scores across the benchmark’s ESG components.