ESG reporting for commercial real estate has moved from "nice to have" to "table stakes." Here's how to do it well.
Framework guidance: You don't need to implement every framework at once. Start with GRESB (most relevant for real estate investors) and GHG Protocol (the foundation for all emissions calculations). Add TCFD/ISSB disclosures when required by your investors or regulators.
The Framework Landscape
The main frameworks relevant to Canadian CRE: - GRESB — the de facto standard for real estate ESG benchmarking - GHG Protocol — the foundation for emissions calculations - TCFD/ISSB — climate risk and financial disclosure - ENERGY STAR Portfolio Manager — EPA's benchmarking tool
Scope 1 and 2: Getting It Right
Scope 1 (Direct): On-site combustion. Track natural gas, diesel (generators), and refrigerant leaks. Use emission factors from Environment and Climate Change Canada's National Inventory Report.
Scope 2 (Indirect): Purchased electricity and steam. Use location-based factors from your provincial grid, and consider market-based factors if you purchase RECs or green power.
Scope 2 dual reporting: ISSB and GHG Protocol now recommend reporting both location-based and market-based Scope 2 emissions. If you purchase renewable energy credits (RECs), your market-based figure may be significantly lower — but you must disclose both.
Data Quality Matters
The biggest challenge isn't methodology — it's data: - Ensure 100% meter coverage (no estimated readings) - Reconcile with utility invoices - Account for tenant-metered areas - Document all assumptions
Key Takeaway
Estimated utility readings are the silent killer of ESG report credibility. Auditors flag them, GRESB penalizes them, and regulators will increasingly require actual data. Pursue direct meter access or sub-metering wherever estimated data appears.
Key Takeaway
Start with good data, use established frameworks, and be transparent about methodology. EdiMono handles the calculations — you focus on the narrative.