The Green Building Council of Australia, backed by the CEFC, has developed a discussion paper to help the real estate sector better understand and report on Scope 3 emissions.
About this report
Scope 3 Emissions Measuring Impact: Why Scope 3 deserves our attention more than ever
July 2024
This discussion paper highlights the challenges of emissions reporting and calls for precise measurement to ensure that significant emissions sources in the built environment are addressed.
Read moreScope 3 are the largest and most elusive source of emissions for companies, and until now the property sector hasn't had much specific guidance on how to report on them… We hope this paper will spark industry-wide discussion and lead us toward an agreed approach to Scope 3 reporting.Jorge ChapaChief Impact Officer, GBCA
about the Report
Scope 3 emissions are among the largest source of emissions for many companies, including in the real estate sector.
This discussion paper highlights the challenges of reporting Scope 3 emissions and discusses how reporting can help manage and reduce emissions across the supply chain.
We’re seeing an increasing sense of urgency around progress towards net zero emissions by 2050. It’s clear that this urgency is leading investors, regulators and consumers to demand greater transparency when it comes to the drivers of emissions right across the economy. While we are seeing good progress around the reporting of Scope 1 and Scope 2 emissions, particularly in the built environment, there is widespread recognition that we need to go further. From a Scope 3 perspective, this requires a deeper understanding about the source of emissions, an organisation’s ability to influence them, and reporting requirements.Rory LonerganChief Investment Officer - Infrastructure and Alternatives, CEFC
Role of the CEFC
The CEFC is an active investor in the property sector, investing to reduce emissions and deliver best-in-class performance around energy efficiency.
CEFC investments in the property sector include:
- A $100 million commitment to Mirvac Wholesale Office Fund which achieved net zero carbon for Scope 1 and 2 emissions in January 2022, eight years ahead of target.
- A $70 million commitment to the development of one of Melbourne’s tallest hybrid mass timber buildings T3 Collingwood, which is targeting net zero operational emissions.
- An up to $75 million commitment to a green real estate finance strategy by commercial real estate investment manager MaxCap Group.
Report findings
Scope 3 emissions usually account for most of a real estate company’s total emissions and often form a critical part of their value chain.
The Corporate Value Chain (Scope 3) Accounting and Reporting Standard identifies 15 emissions categories, with three most relevant to the real estate sector being:
- Purchased goods and services
- Use of Product sold
- Downstream leased assets.
Meaningful Scope 3 emissions accounting can help companies make more sustainable decisions about their activities and the products they buy, sell and produce.
Real estate companies can also substantially influence tenant fitout emissions and should report on these emissions in non-financial reporting to enable greater transparency regarding emissions in the sector.
