1. GRESB is developing a 5-year roadmap to expand its real estate assessment to include more embodied carbon metrics and targets. 2. Embodied carbon refers to emissions from materials and construction processes over a building's lifecycle. It accounts for 11% of global emissions and is a growing contributor as operational emissions decrease. 3. GRESB's current assessment includes some questions about embodied carbon policies, measurement, and disclosure, but coverage is still limited.

1. Embodied
Carbon in
Real Estate

2. Program
• Welcome & Introduction
• 5-year Assessment Roadmap | GRESB
• What is Embodied Carbon | GRESB
• Embodied Carbon in today’s GRESB Assessment | GRESB
• Carbon Accounting and Embodied Carbon/Scope 3 | eTool
• Embodied Carbon benchmarking & setting reduction
targets | eTool
• Q&A | GRESB & eTool
2

3. Program
Charles van Thiel – Director, Real Estate
(Moderator)
Victor Fonseca – Analyst, Real Estate (Speaker)
Henrique Mendonca – Co-Chief Executive Officer
(Speaker)
Adrian Giles - UK/EU/UAE Business Development
Manager (speaker)
3

4. 5-year Roadmap
A Shared Vision

5. A Shared Vision
Phase I:
Defining our joint vision
Phase II:
Creating a strategy to
guide our work toward
our vision
Phase III:
Defining technical
requirements and
execution for the five-
year roadmap
September –
December 2021
January –
April 2022
July 2022 –
January 2023
Creating a Roadmap for the GRESB Assessments
5

6. A Shared Vision
Principles that supports the GRESB Standards
Phase I:
Defining our joint
vision
Focus on the Most
Material Issues
Consider Sector
and Regional
Differences
Align with Industry
Frameworks and
Standards
Focus on both
Efforts and
Outcomes
Assess ESG
through the Whole
Life Cycle
Evaluate and
Benchmark at
Organizational,
Portfolio, and Asset
Level
Access for All
Review Regularly
6

7. A Shared Vision
Phase I:
Defining our joint
vision
ESG issues prioritization
• P r o g r e s s a g a i n s t n e t z e r o
t a r g e t s
• R e s i l i e n c e t o p h y s i c a l c l i m a t e
r i s k
• E m b o d i e d C a r b o n
• D i v e r s i t y , E q u i t y & I n c l u s i o n
• H e a l t h & w e l l - b e i n g
• H u m a n R i g h t s ( i n c l u d i n g M o d e r n
S l a v e r y )
• B i o d i v e r s i t y
• C y b e r s e c u r i t y
ESG issues
7

8. Embodied Carbon
What it is and why it matters

9. Embodied Carbon
What it is?
“Carbon emissions associated with materials and construction processes throughout the
whole lifecycle of a building.” (WorldGBC)
and why it matters?
“Globally, embodied carbon
is responsible for 11% of
annual GHG emissions and
28% of building sector
emissions. As operational
energy efficiency increases,
the impact of embodied
carbon emissions in
buildings will become
increasingly significant.”
(Architecture 2030)
9

10. Embodied Carbon
EN Standards
EN 15978:2011 – Sustainability Assessment of Construction Works
Source: The Building System Carbon Framework -
WBCSD
EN 15804 - Sustainability of construction works - Environmental product declarations (EPD)
10

11. Embodied Carbon
System boundaries & Life Cycle Assessment (LCA)
Common ground between all these
frameworks:
• Define reporting boundaries based
on Life Cycle stages of a building;
• Define reporting requirements 
what should be included in your
Life cycle analysis.
11

12. Embodied Carbon
Embodied Carbon/Whole Life carbon frameworks
• Building value chain:
Composed by sectors
that physically construct
and operate the
buildings throughout
their lifecycle.
• Influencer value chain:
Players that have a key
role in the very early
stages of buildings and
decisions will have
significant impact on the
future emissions of
buildings. 12

13. Embodied Carbon
GRESB Assessment of today

14. Embodied Carbon
2021 GRESB Real Estate Assessment analytics
DMA1 – Materials selection
requirements
• 5 2 % o f p a r t i c i p a n t s o f t h e D e v e l o p m e n t C o m p o n e n t h a v e a p o l i c y r e q u i r i n g l o w e m b o d i e d
c a r b o n m a t e r i a l s .
• 3 6 % o f p a r t i c i p a n t s o f t h e D e v e l o p m e n t C o m p o n e n t a s s e s s e s t h e l i f e c y c l e e m i s s i o n s o f i t s
d e v e l o p m e n t p r o j e c t s .
o 3 5 % o f t h o s e u s e t h e s t a n d a r d E N 1 5 9 7 8 .
o 2 9 % o f t h o s e f o l l o w t h e p r i n c i p l e s o f t h e s t a n d a r d I S O 1 4 0 4 0 / 4 4 .
DMA2.1 – Life cycle Assessment
.
DMA2.2 – Embodied Carbon
• 1 7 % o f p a r t i c i p a n t s o f t h e D e v e l o p m e n t C o m p o n e n t h a v e d i s c l o s e d t h e e m b o d i e d c a r b o n
e m i s s i o n s o f i t s d e v e l o p m e n t p r o j e c t s c o m p l e t e d w i t h i n t h e l a s t t h r e e y e a r s .
o 4 5 % o f t h o s e h a v e p u b l i c l y d i s c l o s e d t h e s e e m i s s i o n s .
o 8 2 . 5 % m e n t i o n e m b o d i e d c a r b o n i n t h e i r d i s c l o s u r e .
o 4 8 . 7 % h a v e a n y e m b o d i e d c a r b o n t a r g e t .
o 1 7 . 5 % h a v e a W h o l e L i f e C a r b o n r o a d m a p t o n e t z e r o .
14

15. Thank you
v.fonseca@gresb.com

17. Who we are?
and/or
2. Subscribe to the eToolLCD software
(to use it as a design /collaboration platform
within your organisation).
1. Engage eTool as a Consultant
(LCA modelling & reporting)
eTool developed the eToolLCD software to model the Environmental and Financial
performance of ‘whole of building’ projects.

18. Who we are?

19. eToolLCD Compliance - International Rating
Schemes

20. eToolLCD Compliance - Supporting Regulatory
Requirements

21. Who we work with:

22. Carbon Accounting & Scope 3
● All greenhouse gas emissions which a
reporting company has no direct ownership or
control over, are known as scope 3 emissions.
● Upstream emissions refer to those related to
purchased or acquired goods and services.
Examples include:
○ Emissions from logistics for
developments
○ Waste from own operations and
developments
○ Emissions from office space leased from
other companies
● Downstream emissions refer to those related
to sold goods and services. Examples include:
○ Assets leased to other organisations
○ Waste disposal and treatment of
products sold by the company
Illustration: UKGBC - Guide to Scope 3 Reporting in Commercial Real Estate

23. Recognised Methodologies
● ISO 14040 Environmental Management - Life Cycle Assessment
- Principles and Framework
● BS EN15978 - Assessment of Environmental Performance of
Buildings
● ISO 14044 Environmental Management - Life Cycle Assessment -
Requirements and Guidelines
● EN 15804 - Technical performance of a construction
product

24. Carbon Accounting & Embodied Carbon
Illustration: Zero Carbon Research Institute/ University of
Liverpool

25. Carbon Accounting & Embodied Carbon
Why is it important?
Embodied and Operational Carbon in new buildings between 2020 and 2070 -
Illustration: Embodied carbon review 2021

26. Carbon Accounting & Embodied Carbon
Why is it important?
Illustration: WBCSD Net Zero Buildings, Where do we stand

27. Utilise LCA across the value chain
Illustration: WBCSD Net Zero Buildings, Where do we stand

28. Use of LCA in the design process
Illustration: WBCSD Decarbonizing Construction

29. Benefits of using LCA to calculate
embodied carbon
● Reliable industry-based data (EPD, LCA process-based inventory)
● Data quality requirements (ISO, EN standard compliant)
● Tools and functionality (increased scope, streamlined modelling and
reporting process (Import, BIM)
● Consistency/common metric, standard compliant results
● Independent review

30. Embodied Carbon Benchmark needs to
be part of Whole Life Carbon benchmark.
Commitment to measure the whole life carbon emissions in a
clear and transparent way.
Embodied carbon benchmarking will help reduce upfront
emissions, increase durability and functionality as well as facilitate
adoption of circularity principles.
Embodied Carbon Benchmarking

31. Embodied Carbon Benchmarking
Indicator: Global Warming Potential, measured in kgCO2e/m2 over 60 years lifespan, offices
900 400
TOTAL 1300 kg CO2e / m2

32. Calculation method: Standard BS EN 15978:2011 Sustainability of construction
works. Assessment of environmental performance of buildings.
Technical Guidance: RICS Whole life carbon assessment for the built environment
System boundary, life cycle stages: Whole life carbon (A-D) and Embodied Carbon
(A1-A5, B1-B5, C1-C4)
Construction Scope: Substructure, Superstructure, Façade, Finishes, Services, Fittings
and Furnishing
Data quality: Standard compliant data (EN15804, ISO21930, EPD) Utilise detailed
spec: volume, mass, size, quantity, not only financial information.
Independent review: Standard compliant review (ISO14044)
Embodied Carbon Benchmarking

33. Embodied Carbon Regulation:
London Plan Policy SI 2 sets out a requirement for developments to
calculate and reduce WLC emissions.
Part Z - A Proposed Amendment to UK Building Regulations to introduce
legislation towards mandatory reporting of carbon emissions in the built
environment, along with limiting embodied carbon emissions on projects.
Regulations will help create free-to-use products and buildings database to
reduce complexity and assist the benchmarking and target setting process.
Embodied Carbon Benchmarking

34. Benchmarking and target setting using As-built calculation:
● Accurate measurement of the true embodied carbon to practical
completion of a project
● Specification and origin (for Modules A1–A3) of each product and
material delivered to site
● Transportation mode and distance (for Module A4), will be known in detail.
● On-site material waste tracking and construction activity energy metering
will inform a precise Module A5 value.
Embodied Carbon Benchmarking

35. AR6 WG1 report, IPCC (August 2021): carbon budget to remain within 1.5°
global warming with 66% probability is given as 400 billion tonnes CO2 from
the start of 2020
Global CO2 emissions are about 36 billion tonnes per year, so the 400
billion tonnes will last just 11 years if no reductions are made.
Embodied Carbon Reduction Targets

36. Route to Zero Carbon - Embodied Carbon becomes more relevant
with the ultra energy efficient buildings and grid decarbonisation
Embodied Carbon Reduction Targets
Average 40% reduction by 2030
(Reference: eTool, LETI, RIBA, GLA, CLF)

37. Functionality - maximise project primary function:
● Net Lettable Area
● Increased lifespan
● Occupancy
Design and Structural optimisation:
● Low Carbon Material (biobased)
● Run whole life carbon scenarios for energy and buildings services
● EPD - Use buying power to encourage and support the suppliers
in their value chain to adopt more sustainable business practices.
● Design for deconstruction and disassembly
Solutions to reduce emissions within the supply chain will be
the most challenging, yet most impactful.
Embodied Carbon Reduction Targets

38. To find out how eTool can support your global real
estate sustainability strategy, please contact one of
the members of our global team.
UK/EU/UAE – Adrian Giles
adrian.giles@etoolgloabl.com
AU/NZ/Asia – Maryia Perthen
maryia.perthen@etoolgloabl.com
NCSA – Henrique Mendonca
henrique.mendonca@etoolglobal.com

39. Q&A
Charles van Thiel – Director, Real Estate
(Moderator)
Victor Fonseca – Analyst, Real Estate
(Speaker)
Henrique Mendonca – Co-Chief Executive
Officer (Speaker)
Adrian Giles - UK/EU/UAE Business
Development Manager (speaker)
Please make sure to use the Q&A function of Zoom