CRREM

What do I need to know?

CRREM (Carbon Risk Real Estate Monitor) is a tool designed to help real estate owners and investors understand when their properties no longer align with current or future decarbonization targets and market expectations, also known as a “stranded asset” - this is defined as an asset that may lose economic value or become non-compliant due to its misalignment with decarbonization target and climate regulations.

CRREM uses actual and/or modeled emissions data to benchmark buildings’ performances against the Science Based decarbonization pathways. This enables you to see if your building stays “on track” and within the projected decarbonization curves or if it exceeds its carbon budget and falls out of alignment with EU or UN climate goals (e.g., the Paris Agreement’s 1.5°C or 2°C targets).

The CRREM pathways are based upon:

• Actual energy consumption (electricity, heating, etc.)
• Emissions factors (which decrease over time as energy systems decarbonize)
• Building-specific data and long-term forecasts

Why is it important?

CRREM is a valuable tool as it is tied to regulation and market expectations, which focuses on real, verifiable reductions of emissions and not purely theoretical efficiency. Buildings that fall out of alignment with net zero targets may face regulatory penalties, higher financing costs, or reduced market demand from investors and tenants.

As a property owner or investor, CRREM allows you to actively manage climate-related risks, prioritize renovations, and protect long-term value by aligning your portfolio with international climate goals

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