Real Estate & REITs · transition pathways
← all sectorsThe recognised primary transition pathway for real estate & reits, plus the upstream sectors real estate & reits firms depend on for their own decarbonisation. A consulting firm cutting business travel still needs aviation to decarbonise; a REIT cutting tenant energy still needs the grid to clean up. These are the rate limiters.
SBTi Buildings + CRREM + GRESB
SBTi has a buildings-specific 1.5°C-aligned pathway. CRREM (Carbon Risk Real Estate Monitor) sets operational decarbonisation benchmarks per asset type and country. GRESB is the de facto investor disclosure standard.
Reference ↗Hover the chart to read off Best / Realistic / Worst values at any year. Click to pin the readout.
Best 10% · Worst 75%
Upstream sectors real estate & reits firms rely on. The faster these decarbonise, the faster the firm can hit its own targets — even when it does everything in its control.
Power & electricity
Scope 2 + Scope 3 · cat 13Tenant electricity is the dominant carbon source for most REITs (60-80%). Whether tenants use less or cleaner power is set by the grid mix in each country.
Source: IEA WEO 2023 — NZE / APS / STEPS
Sector-generic framing shown above — company-specific exposure narrative pending.
Cement & Steel
Scope 3 · cat 2Embodied carbon in new build and major refurbishment. Concrete and steel decarbonisation pace caps how fast REITs can reduce dev-pipeline emissions.
Source: GCCA Net Zero Roadmap, ResponsibleSteel, IEA NZE Industry
Sector-generic framing shown above — company-specific exposure narrative pending.
HVAC & Heat Pumps
Scope 1 + Scope 3 · cat 13Direct heating and cooling — moving from gas boilers to heat pumps cuts both Scope 1 (landlord) and Scope 3 cat 13 (tenant). Equipment supply chain is the rate-limiter.
Source: IEA Future of Heat Pumps, IEA NZE Buildings
Sector-generic framing shown above — company-specific exposure narrative pending.
Building envelope retrofit
Scope 1 + Scope 3 · cat 13Insulation, glazing, airtightness improvements cut heating load before electrification even starts. Without envelope retrofit, heat-pump conversions undersize or underperform. Retrofit-supply-chain depth (insulation, glazers, MEP installers) caps the achievable refurb rate.
Source: IEA NZE Buildings, SBTi Buildings 1.5°C
Sector-generic framing shown above — company-specific exposure narrative pending.
Tenant engagement & smart-building tech
Scope 3 · cat 13Landlord can install the kit; tenant behaviour + monitoring determines whether it gets used as designed. Smart-meter, sub-metering and post-occupancy-evaluation deployment rates govern realised vs designed performance.
Sector-generic framing shown above — company-specific exposure narrative pending.
Once we have HQ + operations location data per firm in this cohort, we'll overlay Ember grid-carbon-intensity data per country so you can see the geographical decarbonisation tailwind (or headwind) each firm is operating against.
Source: ember-energy.org · Global Electricity Review + per-country grid carbon intensity (gCO2/kWh).