Future-ready buildings: how CRREM supports the route to net zero

The future value, cost and desirability of a building are increasingly tied to how quickly it can decarbonise and whether it’s on track for net zero. That’s why British Land’s use of CRREM decarbonisation pathways is good news for customers and investors.

Net zero can feel like a slogan. Everyone’s “committed” and “on a journey”; every brochure looks reassuringly green. But behind the confident language sits a harder truth: buildings don’t decarbonise through ambition — they decarbonise through plans, investment and performance that can be measured and improved, year after year.

So what is CRREM — and why does it matter?

CRREM stands for Carbon Risk Real Estate Monitor. CRREM pathways provide science-based trajectories for how real estate must cut emissions to align with a 1.5°C future — the global target for limiting climate change. Importantly, they can be applied to individual buildings and entire portfolios – and they’re rooted in science.

Every building has a point at which, without improvement, it will become misaligned with a 1.5°C scenario. A point where carbon performance stops being a nice-to-have and starts becoming a commercial risk. That’s the carbon deadline. And it’s closer than many organisations think.

CRREM also solves a challenge the real estate sector has quietly struggled with for years: it makes it easier to compare performance. Rather than being dependent on building owners’ self-defined targets – which often have different baselines and reporting methodologies – CRREM provides a clear, standardised methodology that doesn’t require heavy technical expertise or investment in accreditations.

There is still room for improvement though. CRREM is relatively new and doesn’t yet work equally well for all asset types. For example, premium fashion brands on retail parks are currently assessed against the same trajectory as large retail warehouses, despite having very different energy demands. In addition, CRREM’s early levelling year brings forward the net zero deadline, potentially requiring building systems to be replaced before their end-of-life under CIBSE guidance, increasing embodied carbon and misaligning with replacement cycles.

Whilst CRREM is not perfect, it’s the most robust framework available for deployment at scale and pace. We therefore welcome the ongoing consultation on its methodology and pathways.

For building owners, a high-performing asset expands your options. It supports stronger leasing conversations. It gives confidence to investors about resilience. It improves liquidity at sale. It helps unlock green finance.

Occupiers have agency here too, as their energy use is one of the biggest opportunities. And when owners and occupiers collaborate, decarbonisation accelerates and costs reduce.

One of the most exciting implications of CRREM is what will happen when it becomes widespread. If more landlords report against the same framework, investors will be able to benchmark portfolios more easily.

^* Proposed Minimum Energy Efficiency Standards (MEES) require non-domestic buildings to be rated EPC A or B by 2030.