NZC

Portfolio analysis

CRREM Analysis

Map your assets and portfolios against 1.5°C and 2°C science-based decarbonisation pathways — identify stranded asset risk, Misalignment Year and Carbon Value at Risk.

What it is

Carbon Risk Real Estate Monitor (CRREM) analysis maps an asset or portfolio against 1.5°C and 2°C science-based decarbonisation pathways for real estate.

The output identifies the Misalignment Year — the point at which a building's carbon or energy intensity exceeds its pathway and is at risk of becoming a stranded asset.

CRREM is the de facto standard used by investors, lenders and fund managers to quantify transition risk across real estate exposure.

When you need it

  • You are preparing fund-level transition risk reporting for investors or regulators.
  • A lender or investor is conducting climate due diligence on an asset or portfolio.
  • You are screening an acquisition for stranded asset risk before committing capital.
  • You need to identify which assets in a portfolio require intervention — and by when.
  • You want to test the impact of capex options on Carbon Value at Risk before committing spend.

Our approach

  1. 1

    Use the CRREM EU tool (V2.07)

    All analysis is run through the official CRREM EU tool (V2.07) to guarantee methodology alignment with investor and lender expectations.

  2. 2

    Populate asset energy and carbon data

    We gather floor areas, energy consumption by fuel, occupancy and asset typology, and load this into the CRREM model for each asset.

  3. 3

    Reconcile to current DEFRA factors

    Energy data is reconciled against current DEFRA grid emission factors so reported intensities match your wider SECR, GHG Protocol and investor reporting.

  4. 4

    Scale from single asset to 500+ properties

    We use a batched workflow to run anything from a single asset through to portfolios of 500+ properties with consistent assumptions and audit trail.

  5. 5

    Generate transition risk outputs

    Outputs include Misalignment Year, GHG intensity vs pathway, excess emissions and Carbon Value at Risk for each asset and the portfolio in aggregate.

  6. 6

    Prioritise capital interventions

    We identify where capex — fabric, plant, electrification, on-site renewables — most effectively pushes back the Misalignment Year and reduces Carbon Value at Risk.

What you receive

Per-asset and portfolio Misalignment Year

Misalignment Year against 1.5°C and 2°C pathways for every asset, plus a portfolio-weighted view.

Stranding-risk ranking

Assets ranked by stranding risk so capital and management attention can be focused where it matters.

Excess emissions and Carbon Value at Risk

Quantified excess emissions over the asset's holding period and the resulting Carbon Value at Risk in monetary terms.

Prioritised intervention list

A practical list of where capital intervention changes the outcome — with indicative impact on Misalignment Year and Carbon Value at Risk.

Why NZC Consultants

  • Accredited ESOS Lead Assessor
  • Sterling Accreditation registered
  • Energy Institute member
  • Independent — no software resale, no kit sales

Frequently asked questions

Reference library

Related official guidance

Reference links to the standards, regulations and governing bodies that underpin this service.

  • CRREM

    CRREM — Carbon Risk Real Estate Monitor

    CRREM Initiative

    Official CRREM project portal with downpathways, tools and methodology for assessing transition risk in real estate portfolios.

    View official guidance
  • CRREM

    CRREM decarbonisation pathways

    CRREM Initiative

    Country and asset-type specific 1.5°C and 2°C decarbonisation pathways for energy and carbon intensity benchmarking.

    View official guidance
  • CRREM

    CRREM stranding risk methodology

    CRREM Initiative

    Methodology for assessing the year at which an asset crosses its decarbonisation pathway — the stranding year.

    View official guidance
  • CRREM

    Better Buildings Partnership — Climate Commitment

    Better Buildings Partnership

    UK real estate owner commitment framework aligning portfolio decarbonisation with science-based pathways including CRREM.

    View official guidance

Speak to an NZC Consultants assessor

Tell us about your asset or portfolio and we'll scope a CRREM analysis that fits — we'll respond within one working day.

💬 Ask us about NZC services