Three industry bodies have teamed up to help banks and other financial institutions measure and understand emissions from real estate they finance.
The partnership between real assets sustainability benchmark GRESB, Partnership for Carbon Accounting Financials (PCAF) and Carbon Risk Real Estate Monitor (CRREM) will also help financial institutions ”formulate, set, and implement forward-looking targets in relation to their financed emissions”.
The need for such guidance highlights the increasing importance of having a common framework across both investors and banks to measure and steer towards net-zero goals, the trio said in a joint statement.
Patrick Kanters, managing director of global real assets at APG Asset Management and member of the GRESB interim foundation council, said: “As the stewards of ESG data and standards for real assets, the GRESB Foundation welcomes the opportunity to work with PCAF and CRREM to provide the financial industry with the standardization and tools it needs to effectively calculate and communicate on its financed emissions within the real estate sector.”
Giel Linthorst, executive director of PCAF: “This partnership with GRESB and CRREM is a clear example of the harmonization efforts that the PCAF has been working on. Alignment and harmonization with other initiatives is crucial to enable the financial sector to effectively measure, report, set targets and take actions towards net zero.”
Sven Bienert, founder and managing director of IIÖ Institute for Real Estate Economics, said: “Whereas in the past investors/owners were seen as the driving force to track, analyse and reduce energy consumption within the real estate industry, we recognise now another force supporting decarbonization efforts.
“Banks and other financial institutions providing debt to the market are increasingly demanding clarity regarding financed emissions – impact on loan pricing and lending can be expected soon.”
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