Small changes, huge impact: 3 things you should know about the new CRREM update.

Date

5.2.23

Authors

Kaya Brandt

Viktoria Niggemann

Jens Thumm

Tags

Sustainability

ESG

CRREM

The new Carbon Risk Real Estate Monitor (CRREM) update leads to the tightening of its pathways. The reason for this is that the thresholds for the 1.5 °C scenario have been exceeded worldwide, thus missing the target to accelerate decarbonization. This clashes with the intention of the CRREM initiative to reduce the energy consumption of real estate by reducing direct and indirect emissions in the construction phase of new buildings or during refurbishment and deconstruction, thus reducing the sector-specific CO₂ footprint.

It is essential to be aware that the CRREM paths can be adjusted at any time. Consequently, real estate owners must be able to react flexibly and adapt their ESG reporting to corresponding updates on targets and methodology.

Developed by an independent UK investment company, CRREM provides the real estate industry with transparent, science-based decarbonization pathways. These pathways are based on the Paris Climate Agreement, which aims to limit global warming to 2°C and 1.5°C respectively. The focus is on financial risks associated with the climate vulnerability of portfolios.

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Investors, financial institutions, companies, and asset managers who join the CRREM initiative assess and report the greenhouse gas emissions of their real estate portfolios in accordance with the specified decarbonization pathways. The pressure for real estate owners to act have become greater due to the tightening of the target paths, which set:

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1. More ambitious targets: Steeper decarbonization pathways and tighter targets since January 2023.

2. Updated methodology: exclusion of emissions from electricity transmission and distribution losses.

3. Additional CO₂ pathway: A new CO₂ pathway was introduced to distinguish carbon and greenhouse gas targets.

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Implications of the CRREM Update for ESG Reporting

As a general rule, CRREM paths can be adjusted at any time. Consequently, real estate owners must be able to react flexibly and adapt their ESG reporting to corresponding updates on targets and methodology. However, ESG reporting is currently predominantly carried out using Excel, which makes the process cumbersome rather than flexible, and thus time-consuming and error-prone. For those responsible, it is demotivating to fill in large Excel spreadsheets by hand, and when the CRREM paths are adjusted, as has now happened, the chaos is perfect.

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How the Predium All-in-one Software Solution Makes Reporting Easy

With the Predium software solution, you get an accurate overview of scattered and unsorted data on the technology as well as the building envelope and consumption values of your properties within a few days. You have all the information in one place and don't start from scratch for your ESG reports, but build on continuously collected data.

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The Predium software does the ESG analysis for you, reports your status quo, and handles your long-term ESG action planning to achieve ambitious ESG goals and avoid property value loss. Finally, all information is automatically incorporated into ESG reports that are constantly updated to reflect updated standards. This way, you are always up-to-date, the time-consuming work with Excel is eliminated, and you can report individually and comprehensively to tenants, investors and investors to what extent your portfolio reflects climate targets and ESG criteria.

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In the user-friendly ESG cockpit of the Predium software, which can be operated by several users simultaneously, all relevant steps and processes are clearly visualized. You are not dependent on third parties or the use of Excel, and nothing stops you from flexible and efficient ESG reporting.

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Achieve ESG goals faster and more cost-effectively.

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‍Schedule a consultation.

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More About CRREM

The tool takes into account factors such as the size of the building or the degree of energy retrofit. The data generated by CRREM can be used by stakeholders to assess and minimize the carbon risks of their portfolios. The information can also be used to inform decisions about building construction or renovation to meet the requirements of a low-CO₂-economy. You can avoid stranding risks due to obsolescence as well as write-offs due to missed market expectations or regulatory requirements with the help of CRREM paths.

Date

2.5.23

Authors

Kaya Brandt

Viktoria Niggemann

Jens Thumm

Small changes, huge impact: 3 things you should know about the new CRREM update.

1. More ambitious targets: Steeper decarbonization pathways and tighter targets since January 2023.

2. Updated methodology: exclusion of emissions from electricity transmission and distribution losses.

3. Additional CO₂ pathway: A new CO₂ pathway was introduced to distinguish carbon and greenhouse gas targets.

Implications of the CRREM Update for ESG Reporting

How the Predium All-in-one Software Solution Makes Reporting Easy

Achieve ESG goals faster and more cost-effectively.

‍Schedule a consultation.

More About CRREM

ESG compliance in the real estate industry: The new sustainability reporting standard

ESG non-compliance: financial risks for the real estate portfolio

Small changes, huge impact: 3 things you should know about the new CRREM update.

1. More ambitious targets: Steeper decarbonization pathways and tighter targets since January 2023.

2. Updated methodology: exclusion of emissions from electricity transmission and distribution losses.

3. Additional CO₂ pathway: A new CO₂ pathway was introduced to distinguish carbon and greenhouse gas targets.

Implications of the CRREM Update for ESG Reporting

How the Predium All-in-one Software Solution Makes Reporting Easy

Achieve ESG goals faster and more cost-effectively.

‍Schedule a consultation.

More About CRREM

Related

ESG compliance in the real estate industry: The new sustainability reporting standard

ESG non-compliance: financial risks for the real estate portfolio

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