V2 guidance states target setting for real estate also includes financing rehabilitation of real estate assets. New buildings will generally have higher energy efficiency and thus low carbon intensity compared to the buildings renovated. Therefore, using the same SDA (where embodied emission is not included) for both new buildings and rehabilitation of buildings heavily favors financing of new buildings instead of the urgent need of moving the financing to rehabilitation of buildings if we are to decarbonize the sector.
We have our internal targets for real estate where rehabilitation of building is favored to decarbonize the sector and setting SBTi target would go against this objective. Until we have the pathway where embodied emission is included, does SBTi allow excluding rehabilitation of buildings from target setting?