Should GHG emissions for Indicator 18 be adjusted for the fund’s ownership share?

SFDR Delegated Regulation: Annex I, Table 2, Indicator 18

In simple words

Yes. You must scale the GHG emissions of each real estate asset by your ownership share, not just sum total emissions.

Official question

In Annex I, Table 2, indicator 18 (GHG emissions), do we take the % of ownership into account when calculating the total GHG emissions (i.e. should GHG emissions be calculated as sum of all GHG emissions, or should we also include % ownership to make it a weighted average)?

Official answer

Regarding the GHG emissions of real estate in indicator 18 of Table 2 of Annex I, the ESAs consider that the disclosure of the adverse impact for GHG emissions generated by real estate assets should reflect the share of ownership of the assets by the financial market participant, as detailed in the GHG emissions calculation formula in Annex I”.

Answered by

European Supervisory Authorities

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