Evaluation framework
Carbon Targets
* CRREM: Carbon Risk Real Estate Monitor
Transition
Risk
Physical
Climate Risk
Water
Stress
Air
Pollution
Renewable
Energy
Green
Bonds
Green
Buildings
Relevance to commercial real estate
The overall carbon neutrality target will determine a market’s policies towards ESG for companies and investors
Target year to achieve carbon neutrality
Difference between % change of carbon emissions between 2009- 2019 and 2019-2029
Relevance to commercial real estate
Business-related risks involved in the shift towards a low-carbon and more climate-friendly economy
2020 Transitions Performance Index score
CRREM* 1.5°C decarbonisation pathways for commercial real estate (2020 vs 2030)
Relevance to commercial real estate
Risks resulting from climatic events and natural threats such as flooding and earthquakes that will affect corporate operations and property safety
% of average annual GDP under natural threats
Mid-century GDP changes with 2.0°C increase and x5 factor for (un)known unknowns
Relevance to commercial real estate
Scarcity of safe, usable water resources will affect health and wellbeing, urban environmental quality, food supply and socioeconomic development
Business-as-usual water stress as of 2020
Change in business-as-usual water stress (2020 vs 2030)
Relevance to commercial real estate
Overall air pollution will affect health and wellbeing in workplaces. Asset owners and occupiers also need to invest in air filtration if air quality is not up to standard
Annual PM2.5 concentration as of 2021
Change in annual PM2.5 concentration
(2020 vs 2021)
Relevance to commercial real estate
Adoption of renewable energy is part of corporates’ strategy to achieve net zero emissions
% of renewable energy for total primary energy produced as of 2021
Absolute change in % of renewable energy for total primary energy produced (2016 vs 2021)
Relevance to commercial real estate
Availability of green finance will help fund CapEx for real estate sustainability related initiatives
Green bond issuance for proceeds spent on real estate per market as % of GDP (2021)
Change in issuance amount for proceeds spent on real estate per market (2020 vs 2021)
Relevance to commercial real estate
Green buildings help reduce the environmental impact of the built environment and enhance the health and wellbeing of building occupants
% of green certified office projects, including global and local standards
% of green certified office space completed in the past three years
Status
Measurement of the latest status
Momentum
Measurement of the pace of improvement
Carbon Targets
Transition Risk
Physical Climate Risk
Water Stress
Air Pollution
Renewable Energy
Green Bonds
Green Bonds
Status
Measurement of the latest status
Momentum
Measurement of the pace of improvement
Status
Measurement of the latest status
Momentum
Measurement of the pace of improvement
Status
Measurement of the latest status
Momentum
Measurement of the pace of improvement
Status
Measurement of the latest status
Momentum
Measurement of the pace of improvement
Status
Measurement of the latest status
Momentum
Measurement of the pace of improvement
Status
Measurement of the latest status
Momentum
Measurement of the pace of improvement
Status
Measurement of the latest status
Momentum
Measurement of the pace of improvement