Governance and compliance documentation
May 15, 2025

The 5 Governance Controls That Unlock Your ESG Score

EDRA's B5 component measures governance maturity through 8 binary controls. Each is a yes/no: the control either exists in a formalized, documented form, or it doesn't. Of these 8, 5 have the most material impact on overall EDRA scores — and they're the fastest to implement. For organizations stuck in Dependent Mode (EDRA scores 31-50), governance formalization is consistently the shortest path to Decision-Grade status.

The 5 controls that matter most are: boundary definition, evidence retrievability, approval workflows, emission factor versioning, and assurance review. Boundary definition means documenting what each asset's data perimeter includes — which meters, which spaces, which utility accounts. Evidence retrievability means that for every data point in the submission, the source document (invoice, meter reading, utility statement) can be located and produced within a defined timeframe. Approval workflows mean that data corrections and submissions go through a documented sign-off process, not informal email chains.

Emission factor versioning is often overlooked but critical. When converting utility consumption to carbon emissions, the conversion factors used must be documented, dated, and traceable to their source (national grid factors, DEFRA tables, EPA factors). If an auditor asks "which emission factor did you use for this asset's Scope 2 calculation, and where did it come from?" — the answer must be immediate and documented. Assurance review, the fifth control, means that an internal or external review process validates the data before submission.

Most organizations already have informal versions of these controls. Someone knows the meter boundaries. Someone can find the invoices. Someone approves the data before it goes out. The gap is formalization. An informal process that lives in one person's knowledge is not a governance control. A documented process with defined responsibilities, timelines, and evidence requirements is. The difference between the two is often just 2-3 weeks of documentation work.

The impact on EDRA scores is significant. B5 carries meaningful weight in the overall score calculation. Moving from 2 out of 8 controls formalized to 7 out of 8 can shift the G Score by 30-40 points. For a portfolio in Dependent Mode, that governance improvement alone can push the overall EDRA score past the Decision-Grade threshold — without changing a single data point in the building systems.

Case Study

A listed REIT formalized 5 governance controls in 6 weeks — boundary documentation for all 28 assets, evidence packs organized by asset and utility type, and a three-tier approval workflow for data submissions. Their G Score moved from 35 to 72, and their overall EDRA score rose from 44 to 61, crossing the Decision-Grade threshold.

Download Case Study (PDF)