New breakthrough in quantifying climate transition risk: Measurabl and CRREM launch a listed real estate company-level dataset

Market Background: Urgent Need to Solve the Quantitative Challenges of Transition Risk in the Real Estate Industry

Against the backdrop of accelerating global net-zero emission targets, the real estate industry, as one of the main sources of carbon emissions, faces increasingly severe climate transition risks. According to the International Energy Agency (IEA), carbon emissions from building operations account for approximately 28% of global energy-related emissions. However, for listed real estate companies (REITs and real estate developers), investors have long lacked a unified and comparable way to assess the exposure of their asset portfolios to climate transition risks.

On June 23, 2026, Measurabl, a globally leading sustainability data platform for real estate, and the CRREM (Carbon Risk Real Estate Monitor) Foundation jointly announced the launch of the first company-level climate transition risk dataset targeting the constituents of the FTSE EPRA Nareit Developed Index. The index covers listed real estate companies with a market capitalization of approximately $1.7 trillion, marking a key step toward the standardization of ESG data in the real estate investment sector.

Current Capital Flow: Surging Demand for Transition Risk Data from Institutional Investors

The reference content indicates that the development of this dataset was a direct response to demands from large asset management companies and institutional investors. In the past, due to a lack of visibility into the details and performance data of underlying assets, investors found it difficult to consistently assess transition risk at the portfolio level.

Measurabl has added company-level CRREM pathway deviation year data to its ESGx Securities and ESGx Buildings products. The product covers 70,000 buildings and 370 listed real estate companies, generating standardized estimates of energy consumption, greenhouse gas emissions, green building certifications, etc., through machine learning models, and has been certified by the Carbon Accounting Partnership (PCAF).

This trend reflects that institutional investors are shifting from passive disclosure to actively quantifying climate risks and integrating ESG factors into core investment processes. Global pension funds, sovereign wealth funds, and insurance companies are increasingly referencing such data in their asset allocation decisions to mitigate the depreciation risks that high-carbon assets may face.

Investment Logic Analysis: Structural Drivers and Long-term Trends

Why is capital flowing in this direction?

• Regulatory Pressure and Compliance Needs: Multiple jurisdictions globally (e.g., EU SFDR, U.S. SEC climate disclosure rules) are strengthening corporate climate information disclosure requirements, and investors need reliable data to meet compliance and reporting obligations.
• Transmission of Financial Risks: The CRREM pathway benchmarks show that assets falling behind science-based decarbonization pathways face risks of rental discounts, higher financing costs, increased insurance premiums, and asset stranding. If institutional investors ignore such risks, they may be forced to write down assets in the future.
• Active Management under Passive Investing: With the growing prevalence of ETFs and index investing, investors need the ability to compare company transition risks at the index level to facilitate weight adjustments, exclusions, or thematic investing.Is the long-term trend sustainable?

According to Measurabl and CRREM in the reference content, this dataset integrates transition risk into investment decisions, helping investors with underwriting, engagement, and portfolio monitoring. As net-zero pathways tighten and capital markets demand greater climate resilience, such data will become a standard tool for listed real estate investment. It is expected that over the next three years, similar datasets will expand from developed markets to emerging markets and cover more asset classes.

Risk Factors

Although the dataset provides important quantitative insights, investors still need to be aware of the following risks:

• Macro risk: If global interest rates remain high, real estate valuations will be under pressure, potentially delaying owners' investment in energy efficiency retrofits.
• Policy risk: The implementation of climate policies varies across countries; for example, differences in carbon pricing mechanisms may distort cross-regional comparisons.
• Data quality risk: Although Measurabl's model has been PCAF-certified, some asset estimates still rely on assumptions, and actual differences in emissions data may lead to misinterpretation.
• Market valuation risk: Prematurely pricing high-carbon assets as "stranded" may cause irrational market sell-offs; conversely, underestimating transition risk could lead to asset bubbles.

Long-Term Outlook (2026-2036)

Over a 3- to 10-year horizon, the quantification of climate transition risk in real estate investment will go through three phases:

• Standardization phase (2026-2029): Starting with the Measurabl-CRREM dataset, the industry will develop a unified standard for measuring company-level transition risk. Index providers such as FTSE and MSCI are expected to gradually incorporate such indicators as ESG factors.
• Integration phase (2029-2032): Transition risk data will be deeply integrated with financial models, becoming a routine variable in asset valuation and capital budgeting. Insurers and banks will adjust risk premiums and loan conditions accordingly.
• Mainstreaming phase (2032-2036): As global carbon prices converge and decarbonization pathways become clear, assets that do not align with CRREM pathways will experience significant discounts, while companies that transition early will benefit from green financing premiums and lower equity costs.

For institutional investors, incorporating CRREM pathway deviation metrics early as input variables for asset allocation and investment monitoring will help manage long-term risk exposure and capture Alpha opportunities from the energy transition.

*This article is based on a press release issued by Measurabl and CRREM on June 23, 2026. All data and facts are derived from this public information and have not been fabricated.*