This module is designed to assess the greenhouse gas (GHG) emissions generated by your Real Estate investments which are called financed emissions (scope 3.15).
1. Why consider Financed Emissions?
Financed emissions represent the greenhouse gas emissions associated with investments, lending, and other financial services. They are a crucial component of a financial institution's carbon footprint, often representing the largest source of emissions impact.
Even with a minority stake in the asset, the investor needs to include the asset’s financed emissions in its GHG assessment.
Investment Types
The investment types covered by this module are: Commercial Real Estate and Mortgages.
If you invest in another investment type, you should refer to your Climate Expert that will guide you to another adapted module.
2. Data Required
Name of the Building [MANDATORY]
Outstanding amount [MANDATORY]
Property value [MANDATORY]
Investment year [MANDATORY]
Building surface area [ONE OF THE FOLLOWING 2 OPTIONS IS MANDATORY]
Electricity & heating consumption
3. Calculation Method
For real estate investments, financed emissions are calculated using the following formula:
Financed Emissions = Attribution Factor × Building Emissions
Here's how each component works:
Attribution Factor = Outstanding Amount / Property Value at origination It must be inferior to 1.
Building emissions, which include Scope 1 and 2 emissions related to energy use during building operation, can be calculated based on electricity and heating consumption or estimated using the building's surface area.
Note: Property value should include the land, building, and any improvements. For jointly financed properties, the attribution is based on each asset owner's investment share. Construction and renovation emissions reporting is optional. If the property developer reports construction emissions, these can be included in the financed emissions calculation.
4. Upload your data
To complete the module, go to Data > Data collection > Real Estate and follow the steps below:
1. Download the data collection template as an Excel file or a Google sheet, by clicking on « Import a file ».
2. Please follow the process written in the "READ ME" tab of the file to fill the mandatory columns correctly. This is necessary for the import to function properly.
3. Upload your completed template onto the module. A Greenly analyst will take over to compute the related carbon emissions and import the results.
5. Results
The Results page offers a clear and detailed view of the financed emissions by sector, portfolio, and other insightful analytics.
