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

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

However, the real estate investment trust (Reit) still achieved a five-star rating for the standing investments benchmark in the annual Global Real Estate Sustainability Benchmark’s (GRESB) sector leader results, published on Tuesday (Oct 21) evening.

This was the same rating as last year, when it was recognised as a global sector leader among listed entities in the diversified category.

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

It is one of the two main benchmarks ranked as part of GRESB; the other is known as the development benchmark, which assesses portfolios with new uncompleted constructions and significant renovation projects.

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 these two benchmarks.

While CICT slipped in the rankings, CapitaLand Ascott Trust (Clas) still retained its position as a global sector leader among listed companies in the hotel category. This is the fifth consecutive year it has topped the ranking.

Besides Clas, Frasers Logistics and Commercial Trust and Hongkong Land also maintained their positions as global sector leaders in the diversified category.

Both companies achieved the same recognition in last year’s GRESB rankings.

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As for the development benchmark, Hongkong Land was also recognised as a global sector leader in the diversified category. This marks the third consecutive year the property developer has achieved this recognition.

This development benchmark assesses portfolios with new uncompleted constructions and significant renovation projects.

In an earlier media release from CapitaLand Investment (CLI), the real estate asset manager said that the parent company and its listed Reits achieved improvements in their GRESB scores and achieved an “A” rating for public disclosure.

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

CLI, Clas and CapitaLand Ascendas Reit (Clar) achieved a four-star rating under the benchmark. Clas is recognised as a sector leader even though its rating is lower than CICT as they fall under different categories.

While CICT fell in the rankings, it will still be able to receive interest-rate savings on its sustainability-linked loan that has GRESB performance as part of its sustainability key performance indicators (KPIs).

Besides CICT, CLI, Clas and Clint will also get similar discounts, as 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 that the company and its related entities’ ranking reflect 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 company said in a media release on Wednesday that a majority of the group’s participating entities achieved scores above GRESB’s global average.

Besides FLCT, Frasers Property Singapore was recognised as global sector leader under the residential category among non-listed companies in the development benchmark. Its Vietnam entity achieved the same for 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 that their improved performance reflects the group’s ongoing efforts to strengthen sustainability integration across its multinational 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 their entities would achieve interest-rate savings as a result of their GRESB performance, the company said in the media release that the rankings play an important role in its sustainable financing efforts, as it enables access to more favourable terms or pricing if they perform better.

Asset manager Keppel also said in an earlier media 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.