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Environmental considerations in underwriting

This project aims to move the industry beyond theoretical discussions to a more tangible, numbers-driven approach to integrating environmental factors in underwriting. As part of the next phase of this work we will stress test different scenarios and factors. INREV welcomes input on market experiences and feedback on this project.
1.Do you agree with the four scenarios proposed in the modelling section of the paper [LINK]?(Required.)
Yes
No
Somewhat

Scenario: Ambitious environmental goals

Potential features:
·Net zero/carbon positive
·CRREM compliant across all time periods; full EU Taxonomy alignment

Scenario: Economically feasible environmental goals

Potential features:
·Specific performance targets, e.g. ASHRAE
·End target CRREM compliant; partial EU Taxonomy alignment

Scenario: Compliance-only limited environmental goals

Potential features:
·Minimum regulatory requirements e.g. EPC, carbon limits

Scenario: No defined environmental goals

Potential features:
·Downside risk of assets/portfolio
2.Table 1 of the paper presents six environmental factors. Do you agree that these are the most quantifiable for underwriting purposes?(Required.)
Yes
No
Energy consumption / energy use intensity
Energy ratings
GHG emissions
Stranded year based on energy/ carbon intensity
Physical climate risk score/ level
Building certificates
3.Which location characteristics do you believe impact investment underwriting the most? Rate the impact of each characteristic as Low, Medium or High. Add any others you consider important.(Required.)
Impact
Asset type (Office, Residential, Logistics)
Climate risk zone (i.e. flooding, wind, etc.)
Energy consumption and intensity
Transition risks (i.e. carbon tax, energy efficiency regulations)
4.Did the paper miss any other market practices or inputs that might be useful for phase 2 of the project?
5.What type of member are you?(Required.)
6.Please provide your email address, in case we seek further clarification.