RM4.2: Embodied Carbon in Acquisitions

Maximum Score

Not scored

Input Method

Assessment Portal

Prefill

Eligible

Scoring method

Not scored

Validation

Evidence not required

2026 Updates

None

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Does the entity perform asset-level risk assessment of embodied carbon emissions for new acquisitions?

Assessment Instructions

Intent: What is the purpose of this indicator?

This indicator identifies whether the entity performs an asset-level embodied carbon risk assessment for new acquisitions.

Embodied carbon is an emerging topic rapidly gaining prominence within the real estate industry. This underscores the need for building purchasers and developers to assess and potentially mitigate upfront and/or future embodied carbon emissions.

This is an exploratory indicator designed to gain intelligence on how participants are including embodied carbon in their process for acquiring new properties.

Input: How do I complete this indicator?

Select yes or no. If yes, select all applicable sub-options.

GRESB does not prescribe specific processes for evaluating asset-level embodied carbon risks. Below are several examples illustrating when and how building purchasers and/or developers might assess embodied carbon:

• GHG Protocol guidelines and Scope 3 reporting: When an asset's ownership is transferred, the new owner may report its carbon footprint as part of their Scope 3 emissions for the year.

  • This aligns with the option: Actual embodied carbon from construction activities.

• Brown-to-green strategies: When value-add and opportunistic funds buy brown assets, invest in renovations, and upsell them, they may evaluate the potential embodied carbon they will emit with this work.

  • This aligns with the option: Expected embodied carbon from retrofit activities.

• Whole life carbon impact for the remaining lifespan of the building: Although a building's embodied carbon value is already determined, it may be possible to evaluate (or extrapolate) future embodied carbon emissions of (1) replacement cycles, (2) repair & refurbishment works needed, (3) minor renovations, and/or (4) disassembling the building in the future (end-of-life considerations).

  • Potential 'Other:_____' option

Terminology

Embodied carbon

Refers to emissions that arise from producing, procuring and installing the materials and components that make up a structure. It may also include the lifetime emissions from maintenance, repair, replacement and ultimately demolition and disposal. 

Risk assessment

Careful examination of the factors that could potentially adversely impact the value or longevity of a real estate asset. The results of the assessment assist in identifying measures that have to be implemented in order to prevent and mitigate the risks.

Validation: What evidence is required?

No evidence required.

Scoring

This indicator is not scored.

Get Support: Solution Providers

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Currently, there are no GRESB Solution Providers associated with this indicator.

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