Commercial Real Estate and Mortgages Tool for FIs

Tools
1

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

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2

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).

3

Hi Eoin,

On this issue about real estate emissions calculation:

  1. 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?
  2. 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!!

4

Dear Eoin,

Is it possible to have a reply on this issue? Once again, many thanks for any input you can provide.

Best regards

5

It is indeed possible to set targets based on estimated emissions and to update those targets as data quality is improved.