Hello, the new Commercial Real Estate an Mortgages Tools for FIs requires that all Scope 1, Scope 2 and Scope 3 emissions of the portfolio are entered. At the same time, looking at SBTI Criteria and Recommendations for Financial Institutions on the website, for Real Estate only S1 + S2 is needed.
Which one is the correct one?
In case we are unable to calculate S3 just yet, can we use the old version 1.0 of the tool, which requires S1+S2 only?
Thank you in advance!
Kind regards, Ani
Hi Ani, only S1+2 emissions have to be covered for CRE and residential mortgages. The scope 3 that is referenced in the tool is for commercial real estate where the S1+2 from tenants would have to be included (which would be the scope 3 of a real estate company for leased assets).
On this issue about real estate emissions calculation:
- Does SBTi approves an estimated emission calculation based on a PCAF Score 5 method? In this case, financial institutions do not need to have “building energy labels” or “Energy Performance Certificates - EPC” to estimate emissions. Is this possible?
- With a PCAF Score 5 level, there’s an high probability of error in baseline emissions. Can FI update the target when they have improved their emissions quality data? (namely with the gathering of EPC)?
Thank you in advance!!
Is it possible to have a reply on this issue? Once again, many thanks for any input you can provide.