SUSTAINABILITY AND ESG INDICATORS REPORTED BY PUBLICLY TRADED REITS IN EUROPE – A CLOSE LOOK AT CARBON INTENSITY
SUSTAINABILITY AND ESG INDICATORS REPORTED BY PUBLICLY TRADED REITS IN EUROPE – A CLOSE LOOK AT CARBON INTENSITY

Summary/Abstract: The article analyzes trends in carbon intensity at large-capitalization real estate investment trusts (REITs) in Europe. The author’s company sample consists of the twenty largest components of the FTSE EPRA/NAREIT Developed Europe ex UK Dividend+ Index. The analysis of carbon intensity is based on kilogram CO2 emissions per m², with a focus on operational carbon rather than embodied carbon. Sectors with high carbon intensity are healthcare and residential, while retail and office tend to have lower carbon intensity. Real-time sensors, renewable energy, and carbon offsetting are used to reduce carbon intensity. The extent to which these measures are used determines the carbon intensity of a given company, as my research found that companies operating the same type of real estate can have an eightfold difference in carbon intensity. Nevertheless, across the property sectors I examined there was broad improvement (reduction) in carbon intensity in 2022relative to 2021.

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