Find an answer to your questions in our FAQs or reach out to the team via our contact page.
What are CRREM pathways?
CRREM provides the real estate industry with transparent, science-based decarbonization pathways aligned with the Paris Climate Goals of limiting global temperature rise to well below 2ºC, with ambition towards 1.5ºC. These pathways outline annual decarbonization targets for different asset types in specific countries and include both carbon (GHG) and energy use intensity (EUI) trajectories. The goal of CRREM is to help investors, asset managers, and real estate owners understand their exposure to climate-related transition risks and align their properties with decarbonization goals.
How often are CRREM pathways updated?
Updates are generally made on a three-year basis to reflect new scientific data, regulatory changes, and updated projections for energy consumption, emissions, and technological advancements.
Are the 2ºC pathways aligned with SBTi?
No, the 2ºC pathways are not SBTi-aligned. They are primarily used for risk management purposes and do not meet the level of ambition required to achieve the Paris Agreement targets. The overall anthropogenic carbon budget associated with the 2ºC pathways is too high, making them insufficient for aligning with global climate objectives. Only the 1.5ºC pathways reflect alignment with SBTi and the necessary decarbonization targets.
How often does CRREM update based on new national regulations?
CRREM is not directly tied to national laws but considers national energy mix projections and emission factors in its updates. The focus remains on scientific projections rather than political commitments. While CRREM does not rely on any ruling party’s policy decisions, it does take into account long-term energy transition scenarios and projections to ensure that its pathways remain relevant in different geographical contexts.
How should I handle incomplete data? Can I use modeled data and assumptions?
Yes, interpolated or modeled data can be used, but results based on estimated data will be less accurate. It is crucial to reference any assumptions made to ensure transparency. If modeled or estimated data is used, the methodology and data sources should be documented to provide clarity and avoid misinterpretation. For more details on data quality, refer to the report Accounting and Reporting of GHG Emissions from Real Estate Operations (PCAF & GRESB).
Should I use normalized GHG/EUI data or actual data?
For GHG reporting, actual data is required. However, for target setting or risk management planning, normalized data may be appropriate. Normalization allows adjustments for external factors such as extraordinary energy consumption (e.g., for temporary high-energy uses not representative of standard operations). Regardless of the use case, CRREM users should always disclose whether actual, normalized, or estimated data is used, ensuring transparency in reporting.
What is considered an 'average operating hour' in CRREM pathways?
CRREM pathways represent market-average EUI values. There is no predefined standard for operating hours, as they vary across asset types and regions. Users should compare their asset’s operating hours with market benchmarks and normalize data if significant deviations exist. If operating hours are adjusted, it is essential to disclose the assumptions and methodology used.
How do I know which pathway to use (GHG vs. EUI)?
GHG pathways reflect both location and energy performance risks, whereas EUI pathways provide insight into an asset’s operational efficiency. Since future renewable energy availability is uncertain, CRREM follows an “efficiency first” principle and recommends considering both GHG and EUI pathways. EUI pathways help track energy efficiency improvements, while GHG pathways are essential for understanding the overall climate impact of a property.
How does CRREM handle properties with atypical energy consumption?
Energy consumption can be normalized for carbon risk management purposes if certain energy uses are not representative of typical asset usage and do not reflect the average market. This applies to situations where energy consumption includes elements that are not inherent to the primary function of the building. However, users should note that reporting requirements may differ from carbon risk management methodologies, and it is recommended to document any normalization applied.
How should energy consumption from external amenities (e.g., swimming pools) be handled?
Energy consumption from external facilities should not be excluded, as they contribute to the property’s overall carbon risk. While external features such as pools or outdoor lighting may not be part of the core building operations, they still form part of the property’s overall energy footprint. Upcoming regulations may include external energy uses in carbon pricing, making their inclusion necessary for a comprehensive risk assessment.
Should EV charging stations or electric forklift fleets be included in CRREM analysis?
Energy used for EV charging stations or electric forklifts can be normalized as it does not directly relate to the buildings’ carbon budget. If normalized data is published, transparency about the methodology is essential. This ensures that comparisons with CRREM pathways remain valid and that stakeholders understand the scope of reported consumption.
Does CRREM follow a location-based approach?
Yes, CRREM follows a location-based approach. This means that purchasing green electricity (e.g., renewable energy certificates) does not directly improve a building’s energy efficiency under CRREM analysis. Instead, the efficiency of the building is assessed based on actual, on-site energy consumption, irrespective of the energy source. The location-based approach ensures comparability across assets and aligns with CRREM’s “efficiency first” strategy.
Under this methodology, only direct on-site renewable energy generation that is consumed by the property can contribute to emission reductions. Purchased renewable electricity, even if it comes from verified green sources, does not impact the efficiency metrics within CRREM because it does not change the actual energy demand of the building. This principle ensures that reductions in energy consumption remain the priority rather than reliance on off-site green energy procurement.
How does CRREM consider on-site renewable energy?
When is it appropriate to use market-based solutions?
Market-based solutions should only be considered if a property has already maximized both energy efficiency and on-site renewable energy production, yet still falls short of CRREM targets. This ensures that market-based solutions (such as purchasing green electricity) are used as a last resort rather than a primary strategy.
How can I assess risk with CRREM?
CRREM risk assessments help determine relative risk compared to market averages and provide insights into transition risks. A property that intersects with the CRREM Pathway may be at risk of premature write-downs, but further evaluation and market context are needed to determine potential mitigation strategies. Note: A “breach” of CRREM pathways does not mean an asset is “stranded” — if a building has maximized efficiency and on-site renewables, it can still be net zero, and therefore Paris-aligned.
How can CRREM be applied during pre-investment/due diligence?
CRREM pathways can be integrated into due diligence processes to assess alignment with decarbonization targets and transition risks. Adding CRREM-related data requests in due diligence evaluations helps investors understand the transition risk exposure of an asset. Although CRREM provides an important initial indication, the actual assessment of the building’s energy efficiency and energy supply (e.g. heating with fossil fuels) remains essential. Note: A “breach” of CRREM pathways does not mean an asset is “stranded”, financially or operationally. If a building has maximized efficiency and on-site renewables, it can still be net zero, and therefore Paris-aligned.
Can CRREM be used as a data verification tool under the GHG Protocol?
Yes, CRREM resources align with leading international frameworks such as SBTi, PCAF, IIGCC’s Net Zero Investor Framework and INREV. However, CRREM is not a certification scheme like LEED or BREEAM.
Are there any planned developments for the CRREM tool?
The CRREM tool originated as part of an EU research project and is provided as freeware. No new functionalities are considered, the tool is intentionally kept simple as an initial screening tool rather than a comprehensive decarbonization software. For more advanced analysis, CRREM partners offer additional services.
Where can I find how CRREM maps asset class definitions?
CRREM use types are currently aligned with GRESB definitions. Mapping to ESPM classifications may be considered in future updates. (See: GRESB Reference Guide, Appendix 3a.)
