Carbon intensity

In order to compare the greenhouse gas emissions of properties and issuers, differences between properties and between issuers must be taken into account. In other words, the greenhouse gas emissions must be normalised. For properties, countries and companies, one approach is to consider greenhouse gas emissions in relation to a property’s gross floor area or a country’s nominal GDP or a company’s revenue, respectively. The resulting metric is called “carbon intensity”.

The definition of the carbon intensity for real estate applied by Swiss Life comprises greenhouse gas emissions resulting from the operation of the properties. In principle, greenhouse gas emissions are based on consumption values and emission factors that correspond to the methodological principles of the GHG Protocol Corporate Standard. For the PAM real estate portfolio held directly for investment purposes, the emission factors are based on the CRREM methodology. In 2023, the updated CRREM methodology, which results in adjusted emission factors, was made available. Emissions from its own operating locations and from locations of subsidiaries over which Swiss Life has operational control are reported. The CO₂ emissions of Swiss Life’s operating locations are determined using emission factors from the scientific databases Ecoinvent (Version 3.10 dated 2023), Ademe (version 17 dated 2017), International Energy Agency (World Energy Statistics and Balances dated 2018) and Mobitool (version 3 dated 2023).

Fluctuations in consumption values can arise based on the characteristics of properties, for example due to temporary vacancies (e.g. due to repurposing). In addition, purchases, sales and major conversions are excluded from the carbon intensity calculation for the year under consideration. The manual entry of consumption values for properties in Switzerland results in a time-lag. For the directly held PAM real estate portfolio, consumption values are read off by automatic meter systems or obtained from ancillary cost statements.

For some properties the data (excluding tenant electricity) is lacking or incomplete. Estimates were used for these properties. In addition, Swiss Life estimates the greenhouse gas emissions resulting from tenant electricity for a large proportion of its properties. These estimates take into account the existing standards and guidelines of the various countries as well as consumption values from previous years. In Switzerland and Germany, Swiss Life uses an estimation method based on the year of construction and the energy efficiency class of the properties. If no energy performance certificate is available, CRREM reference values are used. Deepki reference values are used in France.

When normalising the greenhouse gas emissions of properties (calculation of carbon intensity), Swiss Life is guided by CRREM, taking gross floor area as the basis. The definition of gross floor area corresponds to the specifications of CRREM and the Global Real Estate Sustainability Benchmark (GRESB).

MSCI ESG Research LLC defines the carbon intensity for countries regarding production-based greenhouse gas emissions as follows. These include greenhouse gases as defined by the GHG Protocol Corporate Standard:

MSCI ESG Research LLC defines the carbon intensity for companies regarding Scope 1 and Scope 2 emissions as follows. These comprise greenhouse gases as defined by the GHG Protocol Corporate Standard.