Part of our future: CRREM is here to stay.

Photo by Kelly Sikkema on Unsplash

The Carbon Risk Real Estate Monitor (CRREM) tool was developed in Europe to accelerate the decarbonization and climate change resilience of the EU real estate sector. CRREM focuses on the carbon efficiency and retrofit requirements of investment decisions by evaluating the financial risks associated with low energy performance and evolving regulations for building stock. The tool was specifically developed to identify stranded assets for owners and investors, based on the carbon risks inherent in their real estate portfolio, according to the carbon reduction targets set by the Paris Climate Accords.

Using the CRREM tool and associated guidance, ZCS prepared a CRREM analysis of Southern California properties for a European-based investor who was required to document the carbon risks of a proposed acquisition. Putting our finger to the wind, this is only the beginning of what will become a standardized practice with investors whose assets are managed internationally. Not only is it a benefit for investors for future-proofing their properties, but it also gets ahead of the game here in the U.S. where we will soon begin seeing similar movements to make standard this kind of climate-ready assessment. If not now, it will be a matter of only a few years. Here in California, decarbonization is already on the table.

Our question to our clients might be, “Why not get ahead of the game and begin this practice now?” Secure the future of your investments in a way that not only benefits your firm financially through climate-risk forecasting, but also benefits everyone by contributing to a climate-resilient built environment!