Global Investment firm
Full desk-based net zero carbon risk assessment and baseline of 9 real estate funds, including over 100 assets.
The Global investment firm is an independent investment management company that manages over $80 billion of AUM in assets across many countries worldwide. They also have branch offices in over 15 countries.
Working with Verco, they have developed a pathway to net zero and gained an understanding of carbon stranding risks.
- The main aim for the company was to understand which assets are at high risk of stranding under the current Carbon Risk Real Estate Monitor (CRREM) pathways and the associated cost and technical potential to achieve alignment.
Initial kick off meetings were held with different fund managers to introduce them to the team, give context to and help to understand Net Zero Carbon Pathways, outline the project plan and request data.
After these meetings, an initial data request was issued to asset managers to gain a greater understanding of the assets through the people who work with them the most.
Accessing due diligence reports, rent rolls, and consumption data from their online portal, our team reviewed and analysed the data to find the most accurate view of each asset.
Throughout the process, we had regular progress calls to ask questions of the data to fund managers and ensure the firm’s team were up to date on our progress.
The final data used was then entered into our Aim for Zero model where any consumption gaps were filled with benchmark/estimated data if required.
A comprehensive set of modelling outputs were presented including a carbon stranding risk assessment of assets against the most applicable CRREM pathway. This provided the firm with the potential CAPEX required over time, an overview of which assets to focus efforts on initially, and a view on the quality and quantity of data available to each fund.
- Costed pathway to Net Zero and understanding of carbon stranding risk developed for approximately £9 Billion worth of assets.