How do I calculate fossil-fuel exposure for real estate in a multi-asset product?

In relation to multi-asset investments in real estate and investee companies, specifically for the respective GHG emissions of real estate and investee companies, the ESAs consider that principal adverse impacts should be disclosed by type of exposure aggregated at the entity level. In other words, if the financial market participant makes investments through a multi-asset product in real estate, the impacts of that real estate exposure should be added to the relevant indicators for real estate in the template provided in Table 1 of Annex I.

Exposures to investee companies should be added in Table 1 of Annex I to the relevant indicators. The disclosure is not an aggregation of the entire adverse impact of the entity, but the aggregation of the impacts caused by exposures to different types of asset classes in the relevant indicators in Table 1 of Annex I. The ESAs are of the view that for the purpose of the calculation of indicator 17 of Table 1 of Annex I, the financial market participant should only include in the denominator all its investment in real estate assets.