Significantly more of Canada’s prominent commercial real estate players have begun reporting greenhouse gas (GHG) emissions and pursuing net-zero emissions targets during the past year. REALPAC’s newly released update of industry sustainability trends reveals that 68 per cent of its membership now reports scope 1 and 2 emissions, up from 48 per cent in 2023.
Nearly half (49 per cent) are targeting net-zero emissions in their portfolios at some point by 2050, up from 33 per cent last year, and 49 per cent are also tracking some scope 3 emissions, up from 37 per cent last year. Consistent with findings presented in last year’s inaugural report, REALPAC members identified net-zero carbon as their top sustainability priority, but energy management and climate resilience are viewed with more importance compared to 2023.
Results gleaned from REALPAC’s member survey are a companion to the resource document’s wider discussion of range of issues that are increasingly raised in investment decisions and regulatory compliance. That includes an overview of GHG accounting and scope 1, 2 and 3 emissions — direct on-site (scope 1); indirect from purchased energy (scope 2) and emissions tied to activities and products/materials that owners/managers and building users conduct, consume and/or produce (scope 3) — along with insight on embodied carbon, low-carbon energy, carbon offsets and an example pathway for achieving net-zero emissions.
It also delves into climate risk and resilience, sustainable financing mechanisms and ESG reporting with the aim of providing guidance on emerging and evolving resources, policies and practices. As well, a comprehensive glossary defines key terms and concepts, spells out a proliferation of acronyms and identifies organizations and standards that are coming into prominence. In an introduction to the report, REALPAC’s chief executive officer, Michael Brooks, tallies the growing list of investment management, regulatory and consumer expectations that prudent commercial real estate operators need to consider.
“There is a continuing progression of carrots, sticks and, of course, disclosure obligations affecting our industry,” he observes. “The number of companies committed to achieving Paris-aligned decarbonization pathways using the science-based targets initiative (SBTi) is increasing exponentially around the world.”
The sustainability report is available to download for free from REALPAC’s website.
