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Emerging Practice: Climate Target Setting for Real Estate Sector Financing

Emerging Practice: Climate Target Setting for Real Estate Sector Financing

Year Published

2023

Contributing Organisations

United Nations Environment Programme Finance Initiative (UNEP-FI)

Type of Resource

Research/Insights Report

Languages

English

Relevant Topics

Core Topic
Buildings & Real Estate
Topic 2
Target Setting
Topic 3
Banking

Target Audience

Banks

Relevant Geography

Global
Emerging Practice: Climate Target Setting for Real Estate Sector Financing

Resource Summary

This report outlines key considerations for banks when setting climate-related targets in real estate sector financing. It provides guidance on scope, metrics, data, and scenarios for residential and commercial real estate. It also evaluates strengths and weaknesses of different approaches to target setting when selecting the scope of emissions, types of counterparties and financings, metrics, attribution methods and benchmarking approaches, and provides suggestions for their operationalisation. This resource aims to increase banks’ awareness and understanding of useful approaches by updating them on the latest methodologies and approaches in this space at the time of publication. It does not prescribe any particular methodology for banks to use. The resource is aimed at banks financing real estate investors or assets through lending activities.

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