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:
- 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?
- 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.