Investments in Real Estate through private funds

Hi, are investments in real estate through private equity-like structures in scope for mandatory targets setting for FIs? From the SBTi and PCAF definitions, I see direct investments in in-use commercial real estate and REITS are in scope, but how should we think about real estate owned through limited partnerships/private equity-like funds?

Thank you for your help, Maja

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Thank you Maja, this is a very relevant question. Can please someone from SBTi provide some guidance on this? Thank you!

Table 5.2 of the Near-Term Financial Sector SBT Guidance, which provides minimum coverage requirements, has been updated in the draft Version 2 with more granular specifications for each asset class. For example, a separate real estate asset class has been explicitly added to make requirements there clearer. And generally, for investments via funds and collective investment schemes, targets shall be set based on the underlying holdings.

The proposed changes are up for public consultation so we welcome your feedback/questions on this document, and two other new documents, through the survey by Aug 14.