We developed a decarbonisation strategy for one of the world’s leading real estate asset managers – supporting their goals to become net zero by 2050.
In 2020, Generali – one of the largest integrated insurance and asset management groups worldwide – joined the UN-Convened Net Zero Asset Owner Alliance (NZAOA). This member-led initiative was launched to encourage investors and asset owners to transition their investment portfolios to net zero emissions by 2050.
In line with this commitment, Generali Real Estate, the real estate asset manager of the Generali Group, is pursuing a decarbonisation strategy across the real estate portfolio under management.
To help them achieve this goal, we were appointed by Generali Real Estate to develop a decarbonisation strategy. This involved assessing the energy performance of the company’s assets across Europe and verifying their alignment with 2025, 2030 and 2050 decarbonisation targets. We then defined an action plan to improve performance and ensure compliance by 2050 with the goals set by the Paris Agreement.
Assessing existing energy performance
Our first task was to assess the energy performance – specifically the energy consumption and carbon footprint – of Generali Real Estate’s assets across Europe.
Given that the project involved 321 assets in 12 different European countries with a relevant market value, collaboration was essential.
Under the coordination of Generali Real Estate, we carried out energy data analysis, site visits and energy and decarbonisation assessments of all assets distributed across the 12 countries involved. While the project was led by our team in Italy, we worked closely with teams in the UK, Germany, France, Spain and Poland for site visits and data reviews.
Additionally, we identified any environmental risks or issues for each asset and created a list of recommendations to reduce their carbon footprint and ensure adherence to EU Taxonomy regulations.
Developing a decarbonisation strategy
Using the large amount of data gathered, we provided Generali Real Estate with a comprehensive overview of the energy performance of the selected assets in their portfolio which we compared against decarbonisation targets set by the NZAOA.
We then helped Generali Real Estate develop a strategic action plan to improve the performance of the assets and identified adaptation and mitigation measures with relevant CAPEX and OPEX costs, which was submitted to the client’s senior management.
Alongside this, we helped Generali Real Estate develop a sustainable business strategy, highlighting priorities and risks and ensuring that investments are in line with EU Taxonomy.
Practical steps towards achieving net zero
Thanks to our decarbonisation strategy, Generali Real Estate can now proactively work towards the net zero targets set by the NZAOA. Not only will the strategy help the company improve the energy efficiency of their assets, but it will also provide a clear roadmap to achieving net zero emissions by 2050 – leading the way for others in the industry to follow.