PCAF - Residential mortgages - Construction phase

General
1

Hi there,
I am currently accounting for the emissions linked to the residential mortgage portfolio of a bank that wants to voluntarily set targets in this asset class - even if it is not required by SBTi.
I am wondering what happens in the following case, if anyone is able to help, I would greatly appreciate it:

  1. When a loan is given for an outsanding amount that is for the construction of a residential real estate property, should the construction phase emissions be included in this asset class?
  2. Also, should the emissions from the operation of the property be included? i.e. assuming that the first ~2 years of the loan are for the construction phase, and from that point onwards this property will be used by the person subject to the loan.
    Thanks ! :house_with_garden: :moneybag:
2

Great to hear that residential mortgages are being covered! Embodied emissions are currently optional for FIs but I would note that there is currently a call for companies and FIs to pilot test the Buildings Sector Guidance, which includes some guidance on embodied emissions.