With increasing regulation and reporting requirements, investors and legislators are demanding evidence to support ESG performance. Understanding the emerging frameworks is an integral part of reporting on sustainability data. With existing regulation, like Sustainable Finance Disclosure Regulation (SFDR) in Europe, and impending legislation from the U.S. Security and Exchange Commission (SEC), the future of ESG is regulated. Industry leaders need to know what data to disclose, and how to disclose it.
The Carbon Risk Real Estate Monitor (CRREM) provides the real estate industry with decarbonization pathways, or plans, enabling stakeholders to assess risks and expectations. Each plan details how assets can increase efficiency to align with decarbonization goals, extending the suggested trajectories of building-related carbon and energy usage through to 2050. CRREM is a tool developed in the European Union, that any real estate organization can utilize for deeper understanding of their ESG data and performance.
CRREM is the leading global standard for decarbonization of real estate assets, offering a comprehensive framework focused on risk exposure and solutions. CRREM has aligned with the Paris Climate Goals of limiting global temperature rise, offering building-related plans to estimate stranding risks and carbon consumption trajectories, expressed in kWh per m2 and CO2 per m2.
CRREM’s objectives extend from global to single building specific, centered around the inherent risk in any real estate portfolio. Ultimately, CRREM has aligned with the Paris Climate Agreement of limiting global temperature rise, offering a comprehensive framework focused on strategies to reduce risk. These initiatives comply with Paris Climate Agreement-aligned decarbonization efforts, and collaborate with organizations addressing transition risk worldwide. CRREM offers an understanding of greenhouse gas (GHG) emissions, transparency around ESG goals, visualization of buildings’ energy performance, carbon performance tracking, and data analysis.
What it Measures
CRREM helps owners establish net-zero plans and determine building-level stranding risk. The software helps users identify which properties are at risk, supports the analysis of carbon performance of a building, and uses GHG emissions to determine an asset’s transition plan. These decarbonization plans are updated regularly, leveraging evolving market statistics.
In 2020, the European Union developed CRREM for commercial real estate. The EU has committed to decarbonizing the building sector by 2050, and CRREM aligns portfolios with carbon reduction goals to help reach that commitment. However, over time the scope has evolved and CRREM is now publicly available in 44 countries, including Asia and North America.
CRREM and Measurabl
Measurabl has partnered with CRREM, and developed a tool specifically for our customers using CRREM. Our CRREM Export feature, available to Measurabl Premium customers, can populate the CRREM Risk Assessment tool in just seconds. This automated feature can help avoid manual errors, simplify the data, export quickly, and manage risks. Using Measurabl’s CRREM Export can save 30 minutes per building, and provide real estate companies the chance to generate CRREM reports whenever they are needed, without having to wait for data to become available. Measurabl can help streamline the process and provide accurate, timely data to help you represent your ESG performance and report on your performance.