How will Scope 3 emissions affect Real Estate Fund Managers?
The Association of Real Estate Funds ESG & Social Impact Investing Committee recently launched The AREF ESG 5 Year Roadmap, in collaboration with Carbon Intelligence.
This series features six exclusive short films that explain when you will be affected by incoming regulation or market change and how you can prepare. There will be leaders and laggards in the race to zero and those who embrace responsible investing will come out on top.
This video features Danielle Mulder, Director at Carbon Intelligence and Dan Grandage, Head of ESG, Private Markets & Real Estate at Aberdeen Standard Investments
Key Takeaways from Carbon Intelligence
- Scope 3 emissions are all emissions that occur due to an entity’s activities but which it has no direct ownership or control over, including tenant emissions such as travel
- Scope 3 emissions typically make up 80%+ of a portfolio’s carbon footprint
- An expert partner will help identify material emissions to focus on; the top 4 for real estate are purchased goods and services, capital goods, use of sold products and downstream leased assets
- Calculating Scope 3 emissions will require engagement with a complex network of stakeholders including asset managers, landlords and tenants
Key Takeaways from Aberdeen Standard Investments
- Invest in technological solutions such as additional metering to capture tenant data
- Set a target to account for and reduce embodied carbon. Engage with suppliers and contractors to use low carbon materials during fitouts and refurbishments e.g. recycled concrete
- To deal with residual emissions, work with industry experts to develop a robust long-term offsetting strategy to mitigate the risk of green washing
The transition to net zero will require a long term strategic plan and we’re here to help. Contact our team today to understand more about how we’re supporting organisations to develop their net zero roadmaps and ensure climate success, firstname.lastname@example.org OR email@example.com