Net Zero Carbon Guide – SIERA

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Fund Dashboard – Net Zero Carbon Summary

Businesses need to reach Net Zero Carbon (NZC) emissions by 2050. SIERA helps you track your progress. To see how your investment portfolio is doing, check your Fund Dashboard. It covers the time from when SIERA began tracking your funds up to projections for 2050. There are three important indicators for Net Zero Carbon.

Carbon Emissions and Energy Intensity: key indicators for reaching net zero emissions.
Net Zero Carbon BAU Stranding: shows how your fund is performing compared to the 1.5°C target for net zero by 2050.

For example, this fund comprises 6 assets, 273,619 tonnes of Carbon Emissions, an Energy Intensity of 133 kilowatts/square meter, and a predicted BAU Stranding for 2029. These annual carbon summary metrics and performance indicators provide valuable insights to guide your carbon reduction decisions.

Fund Dashboard – BAU Stranding Summary

What is BAU Stranding?

The Net Zero Carbon BAU Stranding box projects how well your fund is performing compared to the scientific target (1.5C) for net zero by 2050. It features two net zero carbon pathways and the projected year of stranding for your fund.

Business As Usual (BAU) Pathway: This pathway illustrates the projected direction of your carbon emissions based on your fund’s current performance.
Science-Based Target (SBT) Pathway: This pathway shows the trajectory you need to follow to align with the Net Zero Coalition's scientific guidelines for achieving net zero by 2050, thereby keeping global warming below 1.5 degrees Celsius.
BAU Stranding Year: SIERA compares both pathways to predict when your fund might fall short of the scientific target. We mark this point with a pink circle. At this point, your funds won't meet the Net Zero Coalition's goals. Recognizing when and where BAU Stranding occurs enables you to take immediate action to reduce carbon emissions at specific assets within your funds, aligning them with science-based targets and making them more sustainable to enhance your overall fund.

For example, SIERA began tracking carbon data for this fund in 2019 and projected pathways until 2050. The BAU pathway forecasts the fund's carbon emissions based on its current performance. Conversely, the SBT pathway outlines the path towards achieving net zero carbon emissions by 2050. Notably, BAU Stranding is anticipated to occur in 2029. To avert this and meet the net zero goal by 2050, significant improvements are needed to reduce the fund's carbon footprint.

Net Zero Carbon Dashboard – Grid Decarbonisation

What is Natural Carbon Reduction?

Even without taking extra steps to reduce carbon emissions, your fund will emit less carbon over time. This is due to cleaner energy sources like solar and wind power becoming more efficient and widespread, reducing the need for fossil fuels and lowering emissions. For instance, as you use more renewable energy sources, your fund will become less carbon intensive.

When calculating your carbon emissions, SIERA accounts for this natural impact and adjusts it year-on-year according to your fund’s changing energy usage. You can track, enable or disable, this natural carbon reduction in the Grid Decarbonisation graph, accessible via the tick box in Settings on your Net Zero Carbon page.

However, it’s important to note that relying solely on this natural reduction in carbon emissions may not be sufficient to achieve Net Zero Carbon by 2050. Additional efforts are necessary to accelerate your transition to sustainable assets and funds before or by that date.

Net Zero Carbon Dashboard – Carbon Intensity

What is Carbon Intensity?

Carbon Intensity is a standardised measure representing the amount of carbon emissions produced by an asset or fund each year per floor area. Carbon Intensity displays an equitable comparison for different assets, regardless of their type, size, or energy source. It creates a level playing field for assessing the environmental impact of each asset.

Carbon Intensity = All Carbon Emissions / GIA

What does your Carbon Intensity graph show?

On the Net Zero Carbon dashboard, the Carbon Intensity graph gives you a detailed projection of carbon performance for individual assets and your entire fund. By default, it displays the Carbon Intensity for your entire fund. If you want to see this data for each asset, just pick the asset you're interested in from your Assets list.

This insight is valuable because it allows you to concentrate on specific actions to reduce carbon emissions from your most carbon-intensive assets. By doing so, you can maximise carbon reductions for your entire fund, making considerable progress towards achieving net zero emissions by 2050.

How is your Carbon Intensity BAU line created?

Baseline consumption data for an asset or fund refers to the energy consumption data recorded by energy meters, including gas and electricity usage. This data is the starting point for calculating future Carbon Intensity projections.

SIERA uses consumption data from the Model Baseline Year for these calculations. This data might be 100% complete, 50-99.9% complete, or < 50% complete.

If 50-99.9% complete, it can be uplifted.

Incomplete data based on time can be uplifted to account for missing months. This generates an estimated 12-month timeframe (Actual Consumption/Actual days) x (Total Days in Timeframe).
Incomplete data based on area can be uplifted to account for missing floor space. This generates an estimated complete area (Actual or Uplifted Consumption/Meters NLA) x (Asset NLA). However, uplifts are only applicable for electricity meters procured by tenants and are not covered by Outdoor/Exterior Area/Parking. Plus, uplifts are only applicable to electricity meters procured by landlords and covered by Tenant Space.
Incomplete data based on occupancy can be uplifted when an asset is partly occupied. This generates an estimated full occupancy level (Actual or Uplifted Consumption/Occupancy) x 100. Occupancy uplifts are applicable for all meters, except those covered by Outdoor/Exterior Area/Parking. If no occupancy data is available, occupancy is assumed to be 100%.

If < 50% complete, it can be benchmarked on CRREM data for that asset’s location, GRESB sector, and year multiplied by its GIA.

How does SIERA display your fund’s progress for Carbon Intensity?

The graph displays your fund’s progress over time using the latest available data. This means that even if we need to estimate/benchmark certain years, your Carbon Intensity will still be displayed (diamonds).

For example, if the current year is 2023, but we only have actual data available up to 2020, the graph will display:

Solid line up to 2020 (actual data)
Dotted line with diamonds for 2021 and 2022 (estimated/benchmarked data)

When actual data becomes available for 2021 and 2022, the graph will be updated to display:

Solid line up to 2022 (actual data)

To access more detailed information, you can click on a diamond to open a pop-up with fund-level Carbon Intensity details for that specific year.

How does SIERA use target pathways to model your carbon reduction?

You can model future actions to reduce Carbon Intensity in your assets or funds.

Currently, we calculate percentage reductions in Carbon Intensity for each year from a baseline year to 2050. We input these reduction values into your Net Zero Carbon Target Pathway. These Target Pathway lines are overlaid on your Carbon Intensity graph to show how we expect your Carbon Intensity to reduce compared to the baseline year.

You can regularly review your Carbon Intensity/Target Pathway graph to track your asset/fund’s progress – and adjust your plans as needed.

What are the key target pathways shown in your Carbon Intensity graph?

Business As Usual (BAU) Pathway: this pathway represents your Carbon Intensity over time if no action is taken to reduce carbon emissions. It serves as a baseline for comparison with other pathways.
Science Based Target (SBT) Pathway: to calculate this pathway, SIERA adds the Gross Internal Area (GA) of each asset to get a total and then calculates the percentage of each asset’s floor area relative to the total floor area. This percentage is multiplied by the CRREM greenhouse gas value for each year, based on the asset’s country and sector. These values are added together every year to calculate your Science Based Target Pathway. If multiple assets share the same country and sector, we can calculate them together using their total floor area.
Action-based Target Pathway: this pathway shows the collective impact of planned actions in terms of carbon savings. You can add actions through your Actions page to track their effect on carbon reduction.
Interim Target Pathway: this pathway calculates the percentage reduction between the current year’s data point and the chosen year’s Target Pathway data point for your fund. This helps you measure your progress toward specific targets within your carbon reduction plan.
BAU Stranding: this data point indicates when your asset or fund may become economically unviable due to changes associated with decarbonising the economy. This is based on no action being taken unlike target pathway stranding which is based on if actions are taken. It signals the importance of taking sufficient actions to ensure the long-term economic viability of your assets.

To effectively manage your carbon reduction actions, you need to review your Carbon Intensity/Target Pathway graph regularly to track progress and make informed decisions for carbon reduction. The graph helps you to adjust your plans and actions in line with your desired carbon reduction goals.

What does the BBP REEB line on your Carbon Intensity/Target Pathway graph mean?

The Real Estate Environmental Benchmark (REEB) is an operational benchmark for the environmental performance of commercial property. It’s available to the public. SIERA uses the UK Office and Retail Shopping Centre BBP REEB (typical practice). Here’s how we calculate BBP REEB.

BBP REEB is published, and reported in SIERA, as kWh/m2/year. This value is converted to kgCO2/m2/year (using emissions factor).
When uplifting data for GIA (Gross Internal Area), BBP REEB is calculated based on NLA (Net Lettable Area).
All BBP REEB updates are reflected in SIERA.
When calculating Energy Intensity logic for offices, we assume that the NLA is 76% of GIA (ECON19). The market GHG benchmark for offices (A/C) is 89.4%.
When calculating Energy Intensity logic for general/large retail, we assume the NLA is 55% of GIA (CIBSE TM46). The market GHG benchmark for retail shopping centres (enclosed A/C) is 49.7.

Net Zero Carbon Dashboard – Energy Intensity

What is Energy Intensity?

Energy Intensity is the quantity of energy required per unit output or activity per floor area.

CRREM reports Energy Intensity as net energy demand intensity. This expresses energy consumed per floor area. Calculating Energy Intensity is remarkably similar to calculating Carbon Intensity, except for applying carbon factors. We get energy intensities directly from your actual or uplifted consumptions. The Energy Intensity graph displays the same information as the Carbon Intensity graph. However, Grid Decarbonisation is not applied for Energy Intensity.

Energy Intensity = Sum of actual or uplifted consumption data / asset GIA

What does your Energy Intensity graph show?

On the Net Zero Carbon dashboard, the Energy Intensity graph displays the same information as the Carbon Intensity graph. However, Grid Decarbonisation is not applied for Energy Intensity.

Calculating Energy Intensity is remarkably similar to calculating Carbon Intensity, except for applying carbon factors. We get energy intensities directly from your actual or uplifted consumptions.

What does your Energy Intensity BAU line show?

The Business As Usual (BAU) Pathway represents your Energy Intensity over time if no action is taken to reduce carbon emissions. It serves as a baseline for comparison with other pathways.

Net Zero Carbon Dashboard – Assets List

Your Net Zero Carbon Assets list displays your assets alongside a data coverage percentage based on the quality of the available data. This data is essential data for your Net Zero Carbon model.

Complete Data
Uplifted/Estimated Data
Benchmarked Data

To view the Carbon Intensity for each asset, simply select that specific asset from your Asset list to reveal its customised graph plus more in-depth details in its pop-up box.

Beneath the Carbon Intensity graph, you’ll find:

Model Notes: you can add notes to your SIERA Models here.
Performance for Assets used in Model: displays key information about your fund for the latest year with Complete Data.

Aggregated Data Quality for Assets used in Model: displays the data quality for all assets in the Model based on the cache data calculations methodology. This differs from your Net Zero Carbon data. Furthermore, to reveal your Data Quality dashboard, click on the bar chart in the box.

The Assets list next to the graph has a filter feature, which allows you to filter by sector, country, and status. This feature is accompanied by a search option if you prefer to search by name/ location instead. If an asset has been sold, a label containing the month and year it was sold will be attached to it. Any assets that appear greyed out are not eligible for NZC due a lack of data.

Net Zero Carbon Dashboard – Targets & Pathways

SIERA focuses on energy-related actions for action-based targets and custom target pathways. SIERA calculates these at the asset level and shows them as aggregated actions at the fund level.

How to configure Action-Based Pathways

Action-based pathways enable you to choose specific energy-saving actions for your calculations. If you select an action, it will be included in your calculations. For example, if you choose an agreed action, only that action will be used in your calculations. If you pick multiple actions, SIERA considers them all.

Remember, the completion due date for an action must be later than the baseline year’s consumption data. If an action doesn’t have a due date, SIERA won’t include it in your calculations. Actions will only be displayed in the NZC module if they are setup with the impact type of Energy and when an estimated saving has been entered. These fields are mandatory to display the action within the module.

SIERA doesn’t calculate an estimated savings reduction for your baseline year.
You need to use baseline year meter consumption data for uplifted/benchmarked assets.
For an action to appear within the NZC module they must be setup with the below configuration.
- Status must be agreed or applicable
- Impact Type must be set to Energy
- Estimated Savings must be populated with a numeric value

How to forecast action-based pathway performance

To forecast the performance of an action-based pathway from the baseline year to the year end, follow these six simple steps:

Take the aggregated estimated savings data for each year and each asset.
Follow this formula: forecasted consumption = previous year consumption – current year estimated savings.
Multiply your forecasted consumption by the carbon factor (based on CRREM) to calculate the carbon value.
After calculating your forecasted consumption, apply these carbon factors to each asset and each year.
Follow this formula: add carbon emissions for all meters / asset GIA
Divide the carbon generated value by your asset’s GIA for Carbon Intensity. For multiple assets, use the average asset value. Follow this formula: forecasted Carbon Intensity for asset * asset GIA / total GIA of the scope or model

How to configure Custom Target Pathways

Custom Target Pathways enable you to create and customise carbon reduction pathways for specific assets.

Click on Custom Target Pathways.
Enter a % reduction for each year from the baseline year to 2050.
Select Apply.

Note

Years from 2030-2035, 2035-2040, and 2040-2050 are grouped into milestones with a single % reduction figure.
You can add up to 100% reduction and create a maximum of three different custom target pathways.
Years between planned reduction years are calculated as BAU.
You can edit, delete, and change pathways using the buttons in that section.

Net Zero Carbon Dashboard – Settings

How to change the baseline year for Grid Decarbonisation

You can change the Baseline Year and Show Grid Decarbonisation on your Settings page. You must select Apply to update this change.

Net Zero Carbon Dashboard – Settings – Chart Options

When you click on the Chart Options button (top-right corner of the Carbon Intensity graph), a pop-up box enables you to customise your graph view.

Select Plot Data for Individual Assets to display data for all assets in your fund on your graph. This enables you to compare the individual carbon reduction performance of each asset against the performance of your overall fund.

You can also customise the year range on the X-axis scale and the carbon/energy specific measuring unit on the Y-axis scale or select Autoscale which automatically configure a suitable range for you. By default, Show Stranding Dates is automatically selected, but you can deselect this option.

Net Zero Carbon Dashboard – Models

What is a model?

The Net Zero Carbon Module is founded on a Net Zero Carbon model – a live, interactive snapshot for carbon data analysis and predictions. These models start with a single year of data based on a collection of assets, chart settings, and one or more proposed carbon reduction plans.

Models include everything necessary to recreate or share your net zero carbon analysis with other SIERA users on their own SIERA accounts.

How are models created?

Models are created in two ways:

Users can manually create models in the Net Zero Carbon Module for specific assets and/or funds – and define the model’s data and settings.
SIERA can automatically create models. Auto-created models are designed to provide a comprehensive analysis while accommodating various data scenarios and asset types. They can be generated according to specific conditions.

What does SIERA include in its auto-created models?

As many assets as possible, with the exclusion of sold assets.
Assets without GIA (Gross Internal Area) data if their GIA data can be derived from their NLA (Net Lettable Area) and CPA (Common Parts Area) data.
Assets with ≥ 6 months’ data: uplift logic is leveraged to estimate and complete the missing data.
Assets with < 6 months’ data: benchmark data is leveraged to estimate and complete the missing data.

Net Zero Carbon Dashboard – Export

How do Data Export Models work?

By clicking on the Net Zero Carbon button on the navigation menu, you can use the data Export feature to save your current model and analyse it offline. It’s a useful tool when you want to replace the actual consumption data for an asset or fund, giving you more control over the data you use to predict future carbon emissions.

For instance, you might have detailed consumption data for asset A, but limited data for asset B. However, if you know that asset B is like asset A, you can export asset A’s detailed dataset to gain insights for asset B.

To offer flexibility, Admin users can upload an alternative dataset for an asset’s baseline consumption year. Importantly, this action doesn’t overwrite your actual meter data or affect other aspects of SIERA.

To enable this setting, go to the Models button, select Export Configuration Data to save the dataset, make any necessary adjustments, and then select Import Configuration Data to bring in the new data.

How do PNG Image Exports work?

On the Net Zero Carbon page, select the Export button to export a PNG image of the Data Export Model for business presentations external to SIERA.

Get in Touch with SIERA

If you encounter any difficulties while following these instructions or require further clarification, please get in touch with our team. We're here to support your needs and address any questions or concerns you may have.

Thank you for reading our latest Net Zero Carbon Guide,

SIERA Team