CO2 reduction path and climate strategy

We want to minimise the negative impact of our business activities on the environment and health as much as possible and have set ourselves a CO2 reduction target. Doing so, we also examine the extent to which climate risks could affect our buildings.

Risks and impacts of climate change

We examine the extent to which environmental influences and climate risks affect our buildings or could affect them in the future. Due to the location, the exposure of our portfolio to natural hazards such as floods, landslides or avalanches is rather limited. We see rising temperatures in summer as the greatest risk in connection with the physical effects of climate change. Adaptation to hotter summers is incorporated into the guidelines for new construction and modernisation. In the new replacement building Clime in Basel, for example, we installed innovative electrochromic windows to reduce the amount of cooling energy required. We counteract the possible transition risks such as higher CO2 prices or stricter building regulations with our CO2 reduction path.

In the 2023 Annual Report, we are reporting for the first time in accordance with the TCFD (Taskforce on Climate-Related Financial Disclosures) requirements and communicating more detailed information on our assessment of the physical risks associated with climate change:

TCFD reporting – physical climate risks

CO2 reduction target and CO2 reduction path

Since the launch of our sustainability programme in 2010, we have been able to reduce the specific Scope 1 and 2 emissions of our properties by more than half to 8.9 kg CO2e per square metre. In 2020, we calculated, analysed and defined a CO2 reduction path until 2050. In doing so, we were guided by international and national targets and framework conditions, but also by the actual conditions in the individual buildings. The details of the scenario on which the reduction path is based can be found in the Sustainability Report 2020. The base year for the CO2 reduction path and the interim targets is 2019. 

2023, we have compared our CO2 reduction pathway with CRREM’s 1.5 °C decarbonization pathway. The assumptions regarding the replacement of heating systems and renovation measures remain unchanged, but some adjustments were necessary with regard to area definitions and emission factors to facilitate comparability. From today’s perspective, we are well on track with our portfolio to make our contribution to the 1.5 °C target (“1.5 °C target-aligned”).

CO2 reduction pathway with reference to CRREM

CO2 target

Halving specific CO2 emissions by 2015.

By 2035, CO2 intensity is to be halved compared to 2019 and the share of scope 1 emissions from fossil fuels is to be reduced to near zero. Net zero is the target for operational emissions (scope 1, scope 2 and scope 3) by 2050.

In order to continuously reduce the CO2 emissions of our portfolio, our priorities are as follows:

 

Area Measures / Targets

Reduce CO2 intensity of energy consumption
Replace fossil fuel heating by heating with a lower CO2 footprint: dependent (in part) on lifecycle
  • As a general rule, no fossil fuel heating systems will be incorporated into new buildings.
  • When renewing heating/cooling systems, we shall where possible switch to heat pumps or district heating/cooling with a higher renewable element.
  • We are actively enquiring into connection opportunities to existing and planned district heating and cooling networks
Sourcing of electricity
  • We aim to source 100% of electricity from renewable energy sources by 2025.

Improve energy efficiency
Energy renovation (insulation, replacing windows): dependent on lifecycle
  • For new buildings and conversions we shall assess the scope for optimizing energy efficiency, flexible usage and tenant wellbeing.
  • Energy efficiency is optimised by improving the insulation of the façade, roof and basement, replacing windows and renewing the building services. As a general rule, we shall base our action on the Minergie standard, although will in many cases go further.
Measures not dependent on lifecycle (e.g. lighting)
  • Lighting units will be replaced by LED units where possible. By increasing tenant awareness we also aim to help reduce their electricity consumption in future.
Optimisation of operations
  • We regard the optimisation of operations as an ongoing task. In order to be able to better coordinate our efforts, we have further expanded our internal facility management expertise.

Own production of renewable energy
Increasing own photovoltaic capacity
  • We are always seeking to increase our own photovoltaic production within the ambit of the existing potential analysed. Implementation occurs in line with the renovation cycle and economic considerations.

 

Implementation in the portfolio

 
Gartenstrasse 32, Zurich
At Gartenstrasse 32 in Zurich, CO2 emissions should be reduced by 17 tonnes per year thanks to the renovation measures (2021/22). The new PV system supplies environmentally friendly electricity directly from the roof.
Bleicherweg 14, Zürich
The property was completely renovated in 2023, including insulation measures and replacement of the oil heating with an air-to-water heat pump. As a result, future CO2 emissions will be close to zero, which will lead to a reduction in CO2 emissions of around 12 tonnes per year.
Grubenstrasse 6, Zürich (B2Binz)
Thanks to the use of low-carbon cement, 82 tonnes of CO2 were saved in the new B2Binz building in Zurich. Changing the material used for the façade cladding from an aluminium sheet to a steel sheet also led to considerably lower emissions.
Waldeggstrasse 30, Liebefeld
The photovoltaic system on the roof of the property at Waldeggstrasse 30 with a capacity of 193 kWp was installed in 2023.
Rue du Mont-Blanc 12, Geneva
Thanks to renovation measures including the installation of a heat pump at the property Rue du Mont-Blanc 12 in Geneva (2021, tenant fit-out 2022), 28 tonnes of CO2 emissions will be saved annually in the future.
Haslerstrasse 30 / Effingerstrasse 47, Bern
Since autumn 2021, Haslerstrasse 30/ Effingerstrasse 47 in Bern has no longer been heated with oil, but with waste heat from the cooling process of Swisscom's server rooms. This will reduce CO2 emissions by almost 90 tonnes per year in the future.
Grosspeter Tower, Basel
At the "Grosspeter Tower" in Basel, the non-transparent façade parts consist of a fully integrated photovoltaic system. A ground probe field with 52 individual probes provides the tower's heat supply.

Embodied carbon

CO2 emissions generated during the production of the building materials used in construction and during the construction process itself (Scope 3) are not included in our CO2 reduction path. In the 2022 business year, we had the built-in CO2- emissions ("embodied carbon") of our three current new replacement buildings (ATMOS and B2Binz in Zurich and Clime in Basel) calculated. Based on these analyses, the various levers for reducing embodied carbon are now being discussed in workshops with the employees in the asset management and construction departments and systematically integrated into the specifications and planning. Thanks to the use of low-carbon cement, for example, 82 tonnes of CO2 were saved in the new B2Binz building in Zurich. Changing the material used for the façade cladding from an aluminium sheet to a steel sheet also led to considerably lower emissions.

Embodied carbon over the lifecycle