What is the function of CRREM?

CRREM, which stands for Carbon Risk Real Estate Monitor, serves a vital role in the assessment of carbon risk pathways for real estate assets in relation to climate targets. As the climate crisis progresses, the importance of understanding how real estate portfolios align with international climate goals has become paramount. CRREM offers methodologies and tools that allow real estate companies and investors to evaluate their assets' carbon emissions and the necessary pathways to transition towards net-zero emissions.

This assessment is not just about measuring current carbon emissions but also involves analyzing how these emissions compare against set climate targets, enabling stakeholders to identify risks associated with climate change and potential regulatory changes while also guiding necessary actions for improvement. Its focus on carbon risk allows for the incorporation of sustainability into real estate decision-making processes, ensuring alignment with global climate initiatives.

Other choices, while related to real estate, do not encapsulate the primary purpose of CRREM. Measuring financial returns or managing investments pertains more to traditional real estate financial tools, while urban development plans focus on broader city planning rather than the specific climate risk management function CRREM provides.