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The colour of money: Green finance

The same principle of science-based targets is also now getting applied to the operation of buildings through the Carbon Risk Real Estate Monitor (CRREM). This is highlighted by the IIGCC’s Net Zero Investment Framework as the main tool for assessing real estate and is already sending shivers down the spines of investors with its graphs forecasting stranded assets over the next 30 years. The idea behind CRREM is that you can plot your building’s performance against a science-based trajectory for that type of asset. And when it exceeds its “carbon budget” it becomes stranded because it is no longer in line with the Paris agreement. If this happens, the asset will potentially attract a “brown discount” from investors and start losing value. 

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