The Green Building Council of Australia (GBCA) has released a discussion paper aimed at initiating a crucial dialogue within the property sector regarding the reporting and accounting of Scope 3 emissions.
This move comes as part of a broader effort to drive large-scale emissions reductions in the real estate industry.
Jorge Chapa, Chief Impact Officer at GBCA, emphasised the growing importance of Scope 3 emissions in reducing the real estate sector’s carbon footprint.
“Scope 3 are the largest and most elusive source of emissions for companies, and until now the property sector hasn’t had much specific guidance on how to report on them,” Chapa stated.
The discussion paper addresses the challenge of translating asset emissions into corporate accounts and calls for precise measurement to ensure significant emissions sources in the built environment are properly addressed.
It also highlights the importance of accurate and consistent reporting in meeting climate commitments, assessing investment sustainability, and complying with regulations.
Rory Lonergan, Chief Investment Officer at the Clean Energy Finance Corporation (CEFC), noted an increasing urgency around progress towards net zero emissions by 2050.
“It’s clear that this urgency is leading investors, regulators and consumers to demand greater transparency when it comes to the drivers of emissions right across the economy,” Lonergan said.
The paper identifies key sources for Scope 3 emissions, including purchased products and services for building construction and operations, emissions from regulated services in operation from sold leased assets, and emissions from the construction and de-fit of all fit-outs during a building’s lifetime.
GBCA plans to use industry feedback from this discussion paper to create a comprehensive guidance document for Australia, in partnership with the Property Council of Australia.
The initiative is supported by the Clean Energy Finance Corporation, with technical guidance provided by Andefena.
This effort by GBCA represents a significant step towards improving emissions accountability in the property sector and aligning the industry with global climate goals.