Aberdeen

What did the client need?

Under Aberdeen’s house net zero target, each real estate investment fund sets their own targets and strategy. Therefore, they each require a robust GHG footprint and evidence base from which to set portfolio targets, track asset performance and fund progress and gain the insight needed to develop costed asset-level implementation plans.

How did Verco support the client?

Verco started work with Aberdeen in 2021 with a rolling programme developing fund level decarbonisation pathways for selected Pioneer funds. These involved developing carbon accounting methodologies, calculating carbon emission baselines, modelling “business-as-usual” future emissions based on growth plans and developing costed CRREM aligned decarbonisation pathways. In subsequent years we rolled out this work to further funds and updated selected pathways to track year on year fund and asset level progress and keep ambition aligned with latest global framework.

We also offer flexible strategic support for a number of fund teams which has included discussing next step priorities, through to investor engagement support. At an asset level Verco have supported with pre-acquisition carbon exposure and transition risk, and various technical due diligence assessments.

This year Verco conducted a full-scope GHG footprint analysis covering 6 funds, providing an up to date view of each fund’s emissions. As part of the project, we engaged with the central ESG team and fund leads to define complete a detailed energy data review process. This increased the fund team’s confidence in the reported data for properties.

We analysed performance against benchmark and CRREM energy and carbon targets at both asset and asset type levels. Then, building on previous work completed for Aberdeen, we were able to compare current energy consumption to that of previous years. This allowed us to identify improving and high consuming trends.

Following previous individual audits, we also recently conducted a programme of on-site decarbonisation audits for 13 assets across Europe. As a result, we were able to confirm current performance, identify carbon reduction opportunities and build an asset plan with cost and timing indications of interventions.

The audits accounted for both the technical engineering potential of the building and the broader context of the asset such as local regulations and access restrictions. We were then able to deliver costed decarbonisation pathways to ensure assets were aligned with corporate targets, CRREMv2 carbon limits and local regulations. We also provided advice on developing asset implementation plans, and support, oversight and reports on the implementation process.

What was the result?

Verco presented Aberdeen with a full-scope GHG footprint. The funds can now use this for their reporting requirements. It can also help them track fund progress against CRREM pathways and review asset level information to understand where any data gaps remain and help identify priority assets to audit.

The team at Aberdeen now has far greater insight into current asset performance, robust and costed asset-level decarbonisation pathways, and clear and actionable fund and asset-level insight, including local relevant building regulations.

Their teams of fund and asset managers are now fully briefed. They understand the implications of their decarbonisation journey and the practical steps needed in order to translate their plan into new business practices, including investment and development activities.

We are looking forward to continuing our partnership with Aberdeen and expanding our areas of support with increasing focus on asset level implementation.