New Science-Based Target Setting Criteria for the Buildings Sector: Explained

Who Needs to Set Science-Based Targets? 

The SBTi Buildings Criteria targets different companies within the buildings’ value chain. Required users of the SBTi buildings criteria include: 

• Developers: Companies involved in the construction of new buildings 
• Owner-Occupiers: Companies that own and occupy buildings for their operations 
• Owner-Lessors: Companies that own buildings and lease them out to tenants 
• Property Managers: Companies that manage buildings on behalf of owners 
• Financial Institutions: Banks and investment firms that finance real estate projects 

Thresholds for Target Setting* 

For each of these companies, the SBTi defines two key conditions to determine whether the criteria for setting science-based targets are relevant to them: 

Mandatory Criteria for Setting Targets* 

If a company meets the above thresholds, they must adhere to the following mandatory criteria outlined by the SBTi (C3 to C14) when setting science-based targets: 

Additional Criteria for Financial Institutions* 

The guidance also includes 2 additional criteria specifically for financial institutions. 

Recommendations and Best Practices  

The guidance also includes several recommendations that are not mandatory but encouraged. 

Next Steps and How WatchWire Can Help 

To prepare for setting targets in line with the new SBTi criteria for buildings, we have outlined potential next steps and how WatchWire can help. 

1. Calculating Scope 1, 2 and 3 Emissions in line with GHG Protocol: WatchWire tracks Scope 1, 2 (both location- and market-based), and all 15 categories of scope 3 emissions in line with the GHG protocol, providing a comprehensive view of your carbon footprint. 
2. Using the location–based approach to track scope 2 emissions: WatchWire calculates both location-based and market-based emissions. In the US, location-based emissions are calculated using the lates United States EPA eGRID sub-region emissions factors, and market-based emissions are calculated by applying purchased and retired Renewable Energy Certificates (RECs), whether bundled or unbundled, then applying the latest Green-e residual mix emissions rates to the remaining MWh not covered by RECs. 
3. Check if operational emissions or embodied emissions exceed 20% of total emissions: WatchWire’s sustainability team provides consulting services to support data analysis and can help your team determine whether operational or embodied emissions exceed 20% of total emissions. 
4. Apply the SBTi criteria for the building sector for new target submissions or re-submissions, by February 28, 2025: WatchWire’s sustainability team supports clients and their partners/consultants in drafting and submitting their targets in line with the SBTi criteria.  
5. Implement energy efficiency improvements in your building: WatchWire’s Measurement & Verification module allows you to track all your efficiency projects, helping you monitor progress and performance. 
6. Track progress towards goals: WatchWire’s goal tracking feature allows you to track and monitor progress made towards your SBTi goals.

Key: 

*= Mandatory criteria to follow 

More About WatchWire

WatchWire by Tango is a market-leading, energy and sustainability data management platform that uses cloud-based software to collect, automize, and analyze utility, energy, and sustainability data metrics. WatchWire streamlines, automates, and standardizes your sustainability reporting process by integrating directly and/or providing reporting exports to ENERGY STAR Portfolio Manager, LEED Arc, GRESB, CDP, SASB, GRI, and more. The platform provides customizable dashboards, which allow asset managers, sustainability managers, engineers, and more to monitor individual key performance indicators (KPIs) and create custom views for specific use cases.

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