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Audit-Ready Carbon Reporting for REITs and Property Owners

Track building operational energy by tenant, calculate refrigerant leakage, measure embodied carbon from renovations, and generate GRESB-compliant disclosures.

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The Industry Hotspot: Building Operational Energy (Scope 1+2)

85-95% from building energy

For real estate owners, 85-95% of emissions are Scope 1 (natural gas heating, refrigerant leakage) and Scope 2 (electricity for HVAC, lighting, elevators). A 100,000 sqm office building consumes 15-25 GWh/year electricity (9,000-15,000 tCO2e at 0.6 tCO2/MWh grid) + 500,000 m³ natural gas (1,000 tCO2e). Energy intensity benchmarks: Office 150-250 kWh/sqm/year, Retail 300-500 kWh/sqm/year, Data centers 1,000+ kWh/sqm/year. Tenant-controlled spaces require energy allocation by floor area or submeters. NetNada tracks utility bills by property, allocates to landlord vs tenant, calculates GRESB metrics, and benchmarks against NABERS, Energy Star ratings.

SASB Industry Definition

The Real Estate industry consists of entities that own, operate, and manage income-producing real estate properties including office buildings, retail centers, industrial warehouses, multifamily residential, hotels, and data centers. Revenue comes from rental income, property appreciation, and property management fees. REITs (Real Estate Investment Trusts) are the primary structure for publicly-traded real estate ownership. The industry faces regulatory pressure from building energy codes, tenant sustainability requirements, and green finance taxonomies.

View SASB Standard →

Industry-Specific Carbon Accounting

No generic solutions. Metrics, data sources, and reporting aligned to Real Estate operations.

Property-Level Energy Intensity Benchmarking

Import utility bills: Electricity (kWh), Natural gas (therms or m³). Calculate intensity: kWh/sqm/year. Benchmark: Office (150-250 kWh/sqm/year), Retail (300-500), Industrial/Warehouse (100-150), Multifamily residential (100-200), Data center (1,000-2,000). Identify underperforming properties (2x benchmark) for retrofit priority.

kWh/sqm per property

Landlord vs Tenant Energy Allocation

Method 1 (Submetered): Tenant spaces with submeters → Direct attribution. Landlord common areas → Separate meter. Method 2 (Pro-rata): Total building energy × (Landlord sqm ÷ Total sqm) = Landlord share. Report: Landlord Scope 1+2, Tenant Scope 3 Category 13. GRESB requires landlord-controlled emissions only.

Emissions allocated by control

Refrigerant Leakage Tracking (HFCs)

HVAC refrigerant top-ups indicate leakage. Example: R-410A refrigerant (GWP 2,088) topped up 50 kg → 50 × 2.088 = 104.4 tCO2e leaked. Track by building: kg refrigerant capacity, annual top-up, leak rate %. Industry average 5-10%/year leak. Report as Scope 1 fugitive emissions. Transition to low-GWP refrigerants (R-32, GWP 675).

Refrigerant emissions tracked

Green Building Certification Tracking

Track portfolio: % sqm with LEED (Platinum, Gold, Silver, Certified), NABERS (6-star target in Australia), Energy Star, Green Star, BREEAM. Higher-rated buildings have 20-40% lower energy intensity. Report: % portfolio by rating and average rating. GRESB scoring heavily weights green certifications.

% portfolio green certified

Renovation Embodied Carbon

Major renovations add embodied carbon from new materials. Track: Tonnes concrete, steel, drywall, carpeting installed. Calculate embodied per sqm renovated. Example: 5,000 sqm office renovation 50 kgCO2/sqm embodied = 250 tCO2. Report separately from operational emissions. Supports CRREM (Carbon Risk Real Estate Monitor) pathway compliance.

Renovation embodied carbon

GRESB and SASB IF-RE Metrics Automation

Auto-generate: GRESB energy intensity (kWh/sqm), GHG intensity (kgCO2/sqm), % renewable energy, % green certified. SASB IF-RE: Total energy, % grid electricity, % renewable, water consumption intensity. Footnotes cite landlord vs tenant allocation methodology.

GRESB and SASB compliant

Product Features for Real Estate

Use Carbon Data Uploader to import utility bills by property, allocate tenant vs landlord energy, and calculate portfolio-level GRESB metrics automatically. Learn more →

The Activity Calculator applies grid emission factors by location and natural gas factors—calculating Scope 1+2 emissions for real estate portfolios. Learn more →

Related Solutions

See our Carbon Accounting solution for end-to-end real estate emissions tracking from building energy through tenant attribution and GRESB reporting.

View solution

Real Estate Case Studies

How entities in this industry use NetNada to solve carbon accounting challenges.

Office REIT (25 properties, 800,000 sqm, $5B AUM)

Challenge

GRESB Real Estate Assessment required portfolio energy intensity and GHG intensity disclosure. 40% of properties had blended utility bills (no tenant submetering). Needed landlord vs tenant allocation methodology.

Solution

Deployed NetNada with utility bill import. For submetered properties (60%): Direct attribution. For blended bills (40%): Allocated by floor area—landlord common areas 25%, tenant spaces 75%. Calculated portfolio energy intensity: 185 kWh/sqm/year (within office benchmark 150-250).

Result

GRESB score improved from 68 to 82 (Green Star). Portfolio GHG intensity: 92 kgCO2/sqm/year. Identified 5 underperforming properties (250+ kWh/sqm/year). Approved $15M retrofit program (LED lighting, HVAC upgrades) targeting 25% energy reduction in those properties.

Industrial Warehouse Portfolio (150 properties, 3M sqm)

Challenge

Tenants (logistics companies, manufacturers) demanded building energy performance data for their Scope 3 Category 8 reporting. 90% of energy tenant-controlled but landlord received utility bills. Needed granular tenant energy disclosure.

Solution

Used NetNada to generate per-tenant energy reports: Total building kWh × (Tenant sqm ÷ Total sqm) = Tenant allocated energy. Provided quarterly tenant dashboards: kWh consumed, kgCO2 emissions, $/sqm energy cost, comparison to warehouse average (120 kWh/sqm/year).

Result

Launched 'Green Lease' program with energy data transparency. 65% of lease renewals included energy performance targets (15% reduction over 5 years). Tenants achieved avg 12% reduction through LED upgrades and dock door sealing. Landlord marketed as 'sustainability-enabled warehouses', reduced vacancy from 8% to 3%.

SASB Disclosure Topics for Real Estate

Material sustainability topics beyond emissions that investors and stakeholders expect disclosed per SASB standards.

Energy Management

environment

Track electricity and natural gas consumption by property. Report energy intensity (kWh/sqm), % from renewable energy, and % of portfolio with green building certifications (LEED, NABERS, Energy Star).

Tenant Energy Attribution

environment

Allocate building energy between landlord-controlled (common areas, HVAC base building) and tenant-controlled (plug loads, tenant lighting). Report landlord Scope 1+2 and tenant Scope 3 Category 13 separately.

Refrigerant Management

environment

Track refrigerant leakage from HVAC systems (HFCs with GWP 1,000-4,000). Report refrigerant top-up quantities, leak detection programs, and transition to low-GWP refrigerants.

Water Management

environment

Monitor water consumption intensity (L/sqm), % withdrawn from water-stressed regions (WRI Aqueduct), and water efficiency measures (low-flow fixtures, rainwater harvesting).

Climate Resilience and Adaptation

business model

Disclose % of portfolio in high physical climate risk zones (flood, wildfire, sea-level rise). Report capital expenditure on climate adaptation measures.

Tenant Sustainability Engagement

social

Report % of leases with green lease clauses (energy performance requirements, data sharing). Track tenant engagement programs on energy reduction and waste diversion.

NetNada tracks all SASB material topics, not just emissions. Our platform supports disclosure across environmental, social, governance, and business model topics relevant to your industry.

Real Estate FAQs

Common questions about carbon accounting for this industry

How do you allocate building energy emissions between landlord and tenant?
Three methods: (1) Submetering (best): Tenant spaces with dedicated meters → Direct attribution. Landlord common areas (lobbies, elevators, HVAC base) on separate meter. (2) Pro-rata by floor area: Total building kWh × (Tenant sqm ÷ Total sqm) = Tenant share. (3) Lease structure: Triple-net lease (tenant pays all utilities) → 100% tenant Scope 3. Gross lease (landlord pays) → Landlord Scope 2, disclose energy pass-through. GRESB requires landlord operational control emissions only.
What energy intensity benchmarks should we use for different property types?
ENERGY STAR Portfolio Manager benchmarks (US) and NABERS (Australia): Office 150-250 kWh/sqm/year, Retail shopping center 300-500 kWh/sqm/year, Warehouse/Distribution 100-150 kWh/sqm/year, Multifamily residential 100-200 kWh/sqm/year, Hotel 200-400 kWh/sqm/year, Data center 1,000-2,000 kWh/sqm/year, Hospital 300-600 kWh/sqm/year. Adjust for climate zone (cooling-dominated vs heating-dominated) and occupancy density.
How do you calculate Scope 1 emissions from refrigerant leakage?
HVAC systems use refrigerants (HFCs) with high GWP. Leakage estimated from annual refrigerant top-ups (recharge amount). Common refrigerants: R-410A (GWP 2,088), R-134a (GWP 1,430), R-32 (GWP 675). Calculation: kg refrigerant topped up × GWP = kgCO2e. Example: 100 kg R-410A top-up → 100 × 2.088 = 208.8 tCO2e. Leak rate = Top-up ÷ Total system charge. Industry average 5-10%/year. Reduce by: leak detection programs, transitioning to low-GWP refrigerants, regular maintenance.
Should we include embodied carbon from building renovations in our carbon footprint?
Yes, report separately from operational emissions. Major renovations (facade replacement, HVAC upgrade, interior fit-out) add embodied carbon from new materials. Calculate: Material quantities (concrete, steel, drywall, carpeting) × Emission factors. Typical office renovation: 30-70 kgCO2/sqm embodied. CRREM pathways for real estate include embodied carbon from renovations. Report: Annual operational emissions (Scope 1+2 recurring) + One-time embodied carbon from renovations (amortize over asset life or report separately as capital carbon).
What's the carbon benefit of installing rooftop solar on commercial buildings?
Rooftop solar reduces Scope 2 (grid electricity). Calculate: Annual solar generation (kWh) × Grid emission factor (tCO2/kWh) = Avoided Scope 2 emissions. Does not reduce Scope 1 (natural gas heating). Example: 100,000 sqm office building, 2 MW rooftop solar → 3 GWh/year × 0.6 tCO2/MWh = 1,800 tCO2/year avoided. Building total Scope 2: 9,000 tCO2 → Solar reduces by 20%. Embodied carbon of solar panels: 2 MW × 500 kgCO2/kW = 1,000 tCO2 (one-time), payback in 7 months of avoided emissions.

Track Building Energy and Generate GRESB-Compliant Real Estate Disclosures

See how REITs calculate portfolio energy intensity, allocate tenant emissions, and achieve Green Star GRESB ratings—automated from utility data.

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