{"id":13488,"date":"2023-02-01T16:52:00","date_gmt":"2023-02-01T15:52:00","guid":{"rendered":"https:\/\/velmaesg.com\/?p=13488"},"modified":"2023-02-07T09:22:05","modified_gmt":"2023-02-07T08:22:05","slug":"crrem-analysis-and-esg-reporting-in-real-estate","status":"publish","type":"post","link":"https:\/\/velmaesg.com\/en\/crrem-analysis-and-esg-reporting-in-real-estate\/","title":{"rendered":"CRREM analysis and ESG reporting in real estate"},"content":{"rendered":"
In today’s article you will learn:<\/span><\/span><\/p>\n \ud83d\udd39 Why won’t you prepare individual indicators in the ESG report for the real estate industry without the CRREM methodology.<\/span><\/span><\/p>\n \ud83d\udd39 How to combine the emission risk monitoring methodology with the ESG report.<\/span><\/span><\/p>\n \ud83d\udd39 Why the real estate sector will use the CRREM methodology.<\/span><\/span><\/p>\n <\/p>\n <\/p>\n Start from CSRD first.<\/strong> What will change: It seems that there is still a lot of time for some companies, but I know from experience that the first reports of companies can be prepared for almost a year (prosaic reason: lack of data, resources, knowledge within the organization and data flow processes).<\/p><\/blockquote>\n Time for the CRREM methodology.<\/strong><\/p>\n We encourage investors, financial institutions, corporates and asset managers to join the initiative and commit to assess and disclose their GHG emissions associated with their real estate portfolio according to the CRREM pathways. CRREM is open to any interested stakeholders and aims at further growing the number of commitments to the pathways. CRREM resources can support stakeholders in many ways (CRREM, GRI<\/a> Source):<\/p>\n <\/p>\n As part of the preparation of the ESG report under the CSRD Directive, companies will take into account the transition to a sustainable economy and limiting global warming to 1.5 \u00b0 C in accordance with the Paris Agreement on the basis of the United Nations Framework Convention. <\/p>\n (…) The reference target value is dependent on the base year and baseline emissions of the undertaking\u2019s GHG emission reduction target. As a result, the reference target value for undertakings with a recent base year or from higher baseline emissions may be less stringent than it will be for undertakings that already have taken ambitious past actions to reduce GHG emissions. Therefore, undertakings that have in the past achieved GHG emissions reductions in line with either a 1.5\u00b0C-aligned cross-sector or sector-specific pathway, may adjust their baseline emissions accordingly to determine the reference target value. Accordingly, if the undertaking is adjusting the baseline emissions to determine. (…) Source: EFRAG<\/a><\/p>\n <\/p>\n When disclosing the information required, the undertaking shall explain:<\/strong><\/p>\n <\/p>\n <\/p>\n Considering the above, the CRREM methodology allows to calculate the above-mentioned<\/span><\/span> scenarios and implementation of the necessary data for the ESG report, also taking into account all the analyzes and data that have been presented as part of the clarification of definitions in this article.<\/span><\/span> At the same time, you can complete the data in the ESG report provided by the ESRS Technical Guidelines:<\/span><\/span><\/p>\n Source: EFRAG, [Draft] ESRS E1 Climate change , November 2022.<\/p>\n <\/p>\n <\/p>\n VELMA ESG is the first accredited services provider of the CRREM analysis in Poland, as well as the first ESG reporting platform tool in Poland certified by the international GRI guidelines. Thanks to these accreditations, you can be sure that your analyzes are performed in accordance with provisions and regulations.<\/p>\n Following this partnership, detailed target-setting guidance published in 2023 will provide real estate companies with the clarity they need to set climate goals. As official providers of the CRREM methodology, VELMA ESG and the CRREM initiative work together to provide the real estate sector with concrete and effective roadmaps for decarbonisation.<\/p>\n <\/p>\n We will be happy to contact you and analyze buildings that are worth considering in reporting and decarbonization scenarios.<\/strong><\/p>\n <\/p>\n \u2705 We will propose the right model of cooperation tailored to the current needs (we can be part of your company’s internal teams or an external supporting partner).1. Let’s briefly explain the basic concepts<\/strong><\/h2>\n
\nCSRD Corporate Sustainability Reporting Directive is a Directive introducing an obligation in the field of non-financial reporting for enterprises throughout the EU.
\nThe rules will come into force in the years 2024-2028, but this is the last moment to start preparing for reporting, data collection and, above all, knowledge that is lacking in the field of ESG – especially in the areas of energy, gas emissions and waste.<\/p>\n
\n\ud83d\udd38 From 1 January 2024, for large public interest companies (with more than 500 employees) already covered by the Non-Financial Reporting Directive, with reports until 2025.
\n\ud83d\udd38 From January 1, 2025, for large companies currently exempt from the Non-Financial Reporting Directive (with more than 250 employees and\/or EUR 40 million in turnover and\/or EUR 20 million in total assets), reporting until 2026.
\n\ud83d\udd38 From January 1, 2026, for SMEs and other companies listed on the stock exchange, with reports until 2027. SMEs can resign until 2028.<\/p>\n\n
2. How to combine the CSRD Directive and its Technical Guidelines (ESRS) with the CRREM methodology<\/strong><\/h2>\n
\nThe ESRS E1 Climate Change [Draft] Technical Guidance published by EFRAG in November 2022 as part of the E1-4 Climate Change Mitigation and Adaptation Goals disclosure indicates that:<\/p>\n\n
<\/p>\n
3. How can we help you?<\/strong><\/h2>\n
\n\u2705 We are also open to consultations, during which we set common goals and decarbonization paths for your properties.
\n\u2705 You can also take advantage of our CRREM training, which you can find HERE<\/a>.<\/strong><\/span><\/p>\n