The European Real Estate Society, together with the Carbon Risk Real Estate Monitor, are proud to invite you to attend our remote seminar
September, 4th 2020.
The London Industry Seminar is organised jointly by ERES and the ‘Carbon Risk and Real Estate Monitor’ (CRREM) project, framed within the EU Horizon 2020 Research and Innovation programme.
The goal of the CRREM project is to accelerate the adaptation of the real estate sector to the process of decarbonisation and climate change. The project estimates the risk of greenhouse emissions released by real estate assets owned by investment portfolios and companies and defines carbon reduction measures to manage this risk. In this sense, CRREM aims to analyse how to reduce carbon emissions of the commercial real estate sector and increase investment in sustainable retrofit by estimating the cost of emissions (present and future) and the cost of retrofit works, making decarbonisation of real estate assets more transparent and accessible throughout Europe.
The energy efficiency levels of existing buildings and the rates of retrofitting for energy efficiency are still insufficient in practically all member states of the EU. These low-performance levels are among the main risks for the sector. Many assets do not meet future energy efficiency standards, they will be too expensive to run, and the required retrofit works may not be financially viable.
CRREM seeks to integrate the requirements of energy efficiency and reduction of carbon emissions in investment decisions, evaluating and communicating the adverse financial risks associated with low energy performance. In addition, the project quantifies the financial implications of a more stringent regulatory environment concerning the intensity of carbon emissions in the real estate stock.
The seminar covers several of these mentioned aspects, and it is organised in two panels. The program is:
2:00pm – 2:20 pm
CRREM project, prof. Paloma Taltavull, U.Alicante, Spain
President of the European Real Estate Society, prof. Ingrid Nappi
2:20pm – 4:00 pm
Panel 1: Stranding risk: Climate change impact on real estate. Uncertainty & solutions
The first panel introduces climate change and stranding risk, with a focus on their impact on the real estate context. The presentations provide insight of the latest research to estimate the impact on asset values and rent, as well as provide the investor and asset managers perspective on current and future challenges to adapt to climate change and future mitigation requirements. Finally, the CRREM tool is introduced, explaining how to reduce stranding risk and ensure that real estate assets and portfolios are climate change ready.
Chair: Ruairi Revell/Dan Grandage – Aberdeen Standard
[Juan Jose Lafuente Cilla – CRREM Back up host]
1. Laura Gabrielli – ERES
Topic: Introduction. Climate change. Adaptation: The impact of climate change on the real estate sector (Higher temperatures, rising energy bills, or extreme weather events). Mitigation. Requirements from the real estate sector to reduce climate change (reduce energy consumption and carbon emissions). Definition of stranding risk and stranded assets.
2. Franz Fürst – University of Cambridge
Topic: The impact of climate change and stranding risk on current and future asset values and expected rents: Energy efficiency ratings, insurance premiums, among other topics.
3. Nuveen — Richard Hamilton-Grey
Topic: The investor and asset manager perspective. The impact of uncertainty in the decision-making of real estate investments: sales and purchases. Budgeting and cost of mitigation and compliance. Capex and Opex. Data challenges for assessing climate change: reporting responsibilities, data from tenants, energy costs, offsets, etc.
4. Juan Jose Lafuente Cilla – CRREM
Topic: Presentation of the CRREM tool. Helping the commercial real estate sector to assess stranding risk and develop a carbon management plan. Cost and carbon.
4:15 pm – 5:30 pm
Panel 2: Decarbonisation targets and risk disclosure.
The second panel will present some of the most consistent frameworks – from the global economy to the asset scale – engaging real estate stakeholders into disclosure and mitigation action. These frameworks encourage the disclosure of carbon emissions and stranding risk of investments, define the concept of ‘sustainability’ within the Paris Agreement and EU context and stimulate the adoption and monitoring of carbon mitigation targets.
Chair: Erik Landry– GRESB / CRREM
1. Hans Vrensen – AEW
Topic: The global perspective. Introduction of the Paris Agreement and the impact on investors and portfolio managers. TCFD disclosure commitments: Framework and challenges for portfolio managers.
2. Victoria Burrows – World GBC
Topic: The built environment’s efforts beyond policy. Advancing Net Zero framework and targets. More restrictive targets achieved earlier.
3. Erik Landry – GRESB / CRREM
Topic: Portfolio and assets. ESG benchmarking and portfolio assessment. CRREM approach to decarbonisation, reporting and disclosure.
The seminar is transmitted remotely during September 4th, 2020, and hosted by Aberdeen Standard Investment group in collaboration with EIC CRREM members.
The seminar is free of charge but requires registration through the BrightTALK platform.
The seminar has received support from the European Union through the H2020 program for the CRREM project.
Source : ERES and CRREM