Commercial Real Estate: Residential and Service Buildings

Criteria
1

Hi,

The SDA Real Estate SBTi tool distinguishes between Residential and Service Buildings within the commercial real estate asset class, which creates two trajectories if the FI is invested in those two sectors of the commercial real estate. Does that means that it must submit two different targets? How would you consolidate the different trajectories?

Best,
Yoann

2

Hi Yoann, yes, ideally two targets would be set. Conceptually, they could be consolidated since they share the same metric (emissions per m2), however, recalculation would likely be needed if the proportion of residential vs. service buildings in the FI’s portfolio changes materially.