Every year, the real estate industry takes a hard look in the mirror. Investors want to know which owners are actually managing environmental, social, and governance risk and which are simply talking about it. One of the most widely used benchmarks for that answer is GRESB.
Third-party benchmarks are only as meaningful as the discipline behind them. Our latest GRESB result, #1 in our peer group for the second year in a row, reflects a consistent, value centric approach to our sustainable grocery-anchored operations.
This year, Phillips Edison & Company (PECO) again earned the top ranking in its GRESB peer group, the second consecutive year we’ve held that position. I want to unpack what that recognition actually measures, why it matters for a grocery-anchored portfolio specifically, and how it connects to the way we run our business every day.
What is GRESB?
GRESB is an independent assessment and benchmarking platform that scores real estate companies and funds on their environmental, social, and governance performance. Participants are measured on management practices and real-world performance data, then benchmarked against a defined group of peers with similar property types and geographies.
Three different measures and what each one actually tells you
The GRESB assessment results in more than one way, and the distinctions matter. A single assessment produces an objective score that results in a peer-group rank, a star rating, and a separate public disclosure grade. They measure different things, and reading them together gives a far more complete picture than any one number on its own.
Our overall score out of 100 on GRESB's global sustainability benchmark, 10.8 points above our peer group average.
Where we place among a defined set of comparable retail owners grouped by property type, investment style, and geography.
A global quintile measure comparing our score against every GRESB participant worldwide, across all property sectors.
Public Disclosure
An “A” grade for the third consecutive year
Public Disclosure is scored separately from the main assessment, on an A-E scale measuring how transparently we report sustainability governance, implementation, performance, and stakeholder engagement. Our “A” sits a full letter grade above global norms and places PECO in the top tier for transparent reporting.
A full quintile of improvement, in the most energy-intensive sector
Moving from two stars to three means climbing an entire quintile against the global field and we did it in retail, which GRESB’s own 2025 benchmark identifies as the most energy-intensive property sector worldwide. Open-air retail also involves largely tenant-controlled spaces, which makes documented, whole-building performance data materially harder to capture than in directly managed sectors. The improvement reflects better data coverage and real efficiency work, not a favorable comparison.
The operating record behind the rating
Since the 2025 GRESB Standard shifted weight toward documented performance rather than stated policy, results now track the work itself. These are the numbers underneath ours:
Reduction in Scope 1 & 2 emissions from a 2020 baseline — achieved while growing gross leasable area by 7%.
Invested in energy-efficient, return-driven projects across the portfolio in a single year.
Kilowatt-hours of portfolio energy reduction delivered through those efficiency projects.
Of leases now include high-performance language, aligning tenant and owner incentives on efficiency.
Efficiency work of this kind lowers operating cost and risk at the asset level. That is the same discipline that supports durable occupancy and leasing performance, which is why we treat sustainability results and business results as one story rather than two.
Why a peer-group ranking is the number to watch
It’s easy to celebrate a score in isolation. But GRESB’s real value is comparative. The benchmark places each participant into a peer group based on property type and location. In our case it is retail centers of a similar profile. So, the ranking answers a sharper question: among owners doing what we do, who is executing best?
Leading that group two years running signals something durable. It says our sustainability results aren’t the product of a single favorable year or an outlier project, but of repeatable operating practices applied consistently across the portfolio.
Performance you can measure
What separates a strong GRESB result from a good intention is data. The assessment rewards owners who can document energy, emissions, water, and waste performance across real assets and who improve those numbers year over year through disciplined building management.
That’s the work behind the ranking: efficiency projects, better data capture, and operating standards applied center by center.
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What this means for a grocery-anchored portfolio
Grocery-anchored centers occupy a unique place in retail real estate. They’re anchored by essential, everyday-need tenants that draw consistent foot traffic and tend to remain resilient through economic cycles. That resilience is exactly why disciplined, long-term operating practices (the kind GRESB measures) compound so effectively in our model.
When you operate necessity-based retail, sustainability and business performance aren’t in tension. Energy-efficient, well-managed centers are lower-risk, more cost-efficient assets that serve Neighbors better and create long-term value for the investors and communities who count on them.
Governance and operating discipline, validated externally
For investors and analysts, a leading GRESB result is external validation of something harder to see from the outside: consistent governance and operating discipline. It’s evidence that the way we manage risk and performance across the portfolio holds up under independent, standardized scrutiny.
Key Takeaways
PECO ranked #1 in its GRESB peer group for the second consecutive year- a marker of consistency, not a one-off result.
GRESB is a comparative benchmark. Peer-group ranking measures performance against owners with similar property types and geographies.
The score is built on data. Energy, emissions, water, and waste performance across real assets drive the result.
Grocery-anchored resilience and sustainability reinforce each other, compounding long-term value for Neighbors, communities, and investors.
It’s third-party validation of governance and operating discipline- the qualities that matter most to investors and analysts.
Frequently Asked Questions
What does it mean to be #1 in a GRESB peer group?
Is a peer-group leader the same as a GRESB “Sector Leader”?
What does GRESB actually measure?
Why is sustainability performance especially relevant for grocery-anchored retail?
Why should investors care about a GRESB ranking?
Explore PECO’s Corporate Responsibility Story
See how our approach to sustainability, governance, and community impact creates long-term value across our grocery-anchored portfolio.
Read the Corporate Responsibility ReportRyan Knudson
Ryan leads the development and execution of PECO’s Corporate Responsibility and Sustainability strategy, overseeing energy management, GHG inventory and reporting, and the company’s GRESB participation. He partners across operations, finance, and governance to translate sustainability performance into long-term value across PECO’s grocery-anchored portfolio.
