Reporting on sustainability is becoming essential. National and EU legislation is driving ESG reporting. At the same time, customers and stakeholders increasingly expect transparency regarding sustainability.
With the Corporate Sustainability Reporting Directive (CSRD) coming into effect, more companies are required to report on sustainability. This can be achieved with the help of ESG reporting. An ESG report focuses on three elements: Environment, Social, and Governance, allowing you to track progress, identify risks, and report on performance. The EU taxonomy constitutes an important framework when reporting. The frameworks and guidelines in the EU taxonomy are still evolving, so preparing an ESG report can be challenging. Our consultants, with extensive experience in preparing sustainability reports, are ready to assist. For example, our experts previously helped Van der Vorm Vastgoed Groep prepare an ESG report and Argenta, a Belgium-based banking and insurance group, prepare a Methodology Report for green bonds. This outlines exactly the criteria assets must meet to be labeled as ‘green’ and ‘eligible’.
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Measuring and reporting on sustainability is important for financial institutions and property owners. Increasingly, shareholders, financiers, and potential buyers are looking at a property or portfolio’s score when it comes to ESG and carbon impact. CFP helps clients create ESG and carbon reports using various reporting standards.
The Partnership for Carbon Accounting Financials (PCAF) is a global initiative of financial institutions working together to develop an approach to determine greenhouse gas emissions from loans and investments. Using PCAF, financial institutions can map the carbon footprint per financing, set targets and report on it. This will enable them to align their portfolios with the Paris climate agreement.
The Carbon Risk Real Estate Monitor (CRREM) was developed to help meet the Paris climate agreement. CRREM highlights the financial risks of poor energy performance and the cost of climate change for buildings. CRREM is integrated in our software, providing these sustainability insights that are also useful for reporting.
The Global Real Estate Sustainability Benchmark (GRESB) is an independent benchmark used to measure sustainability of real estate funds. This includes a focus on the three ESG components: Environmental, Social, and Governance. GRESB examines compliance and implementation of sustainability policies, environmental performance of real estate portfolios and greenhouse gas emissions and waste streams, etc. Understanding energy and waste flows is crucial in this respect. With the help of certifications such as BREEAM, WELL and energy scans, you will get the insights needed to obtain and improve a GRESB score.
The CFP Green Buildings tool provides large-scale insights regarding energy usage, energy savings and emissions reductions. The tool can analyze entire portfolios or single properties, retrieving EPCs, sustainability scores, and carbon scores. It gives you all the data you need quickly and conveniently to get started with PCAF, CCREM standards and GRESB, resulting in comprehensive ESG reporting. The Green Buildings Tool saves up to 75% of your time and identifies additional measures to achieve energy-neutral, net-zero buildings.
Sustainability reports are of vital importance because they enable us to better understand the impact of organizations on the environment and society. They provide insight into how companies address important sustainability issues such as climate change, energy consumption, water management, and social responsibility. Through these reports, organizations can be held accountable for their actions and promote transparency. It is crucial that we comprehend the impact of organizations on sustainability and that they provide full disclosure. This way, we can work together towards a sustainable and responsible future.
An ESG report typically includes information about a company’s environmental impact, social impact such as employee affairs and diversity, and governance aspects such as ethics and transparency. It may also encompass financial performance and non-financial objectives.
The key elements of a carbon report are: inventory of carbon emissions, clear objectives and KPIs, and the use of accurate emission factors for precise calculations. Together, they ensure a valuable report that reflects the impact of carbon emissions within your company.
Although these reporting standards are not legally required, they are increasingly being requested by investors, financial institutions, and other stakeholders. The use of standards like CRREM, PCAF, and GRESB can therefore be advantageous in attracting investments, meeting stakeholder requirements, and promoting sustainability.
The use of reporting standards for ESG or CO2 reporting offers several advantages. It ensures consistency and comparability between organizations, encourages benchmarking, and promotes best practices. Furthermore, these standards facilitate communication with stakeholders and enhance the credibility of reports.