# T1.2: Net Zero Targets

			Cover image
Maximum Score	2 points
Input Method	Asset Portal
Prefill	Not eligible
Scoring method	Static
Validation	Evidence not validated
2026 Updates	Yes

*** #### *Assessment Portal Input* **Has the entity set GHG reduction targets aligned with Net Zero?**

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Is the target aligned with a Net Zero target-setting framework?

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## Assessment Instructions

Intent: What is the purpose of this indicator?

Greenhouse gas (GHG) reduction targets are a central component of an entity’s decarbonization strategy. Setting targets aligned with global net-zero pathways signals a formal commitment to reducing emissions in line with the goals of the Paris Agreement (i.e., limiting global warming to well-below 2°C above pre-industrial levels and pursuing efforts to limit warming to 1.5°C). Clear targets strengthen investor confidence, provide direction for long-term transition planning, and support the entity’s progress toward a low-carbon, resilient portfolio. **Note**: GRESB will use data from this indicator and the asset portal to provide an insight that plots the entity's actual portfolio performance against its Net Zero target.

Input: How do I complete this indicator?

**Assessment Portal Input** Select yes or no. If yes, select all applicable sub-options. If “yes,” participants must provide **at least one** short-term, medium-term, **or** long-term reduction target. The target(s) provided must include a scope, metric, base year, target year, and target reduction %. **Target characteristics**: * **Target scope:** Select the GHG emissions Scope(s) covered by the reduction target. Options include: * Scope 1+2 (market-based) * Scope 1+2 (location-based) * Scope 1+2 (market-based) + Scope 3 (operational emissions) * Scope 1+2 (location-based) + Scope 3 (operational emissions) * Scope 3 (operational emissions) * **Target metric:** Select whether the target is based on absolute emissions or emissions intensity (kgCO₂e / m²). * **Base year**: Include a baseline year. Participants have the option to select a baseline year starting from 2015.  * **Base year performance** *(optional)***:** Input the base-year GHG performance (absolute or intensity value, depending on the selected target metric) of assets included within the target's scope. * **Short-term target year:** The year for the short-term target. Must be greater than the base year and less than 2100.\ **Short-term target reduction (%):** Reduction percentage for the short-term target, expressed as a value between 0 and 100%. * **Medium-term target year:** The year for the medium-term target. Must be greater than the short-term year. * **Medium-term target reduction (%):** Reduction percentage for the medium-term target, expressed as a value between 0 and 100%. * **Long-term target year:** The year for the long-term target. Must be greater than the medium-term year, or short-term year (if no medium-term year is present). * **Long-term target reduction (%):** Reduction percentage for the long-term target, expressed as a value between 0 and 100%. **Asset Portal Input** In the Asset Portal, select "TRUE" if the asset is included in the entity's Net Zero target. This field is located within the GHG tab of the Asset Spreadsheet. #### Terminology **Base year performance** > A a measurement of the entity's GHG emissions from the year at which the target begins. **Validated by a third party** > Refers to targets that have been independently verified or assessed by an external organization to confirm alignment with recognized Net Zero or climate science methodologies. Examples include validation or approval by the Science Based Targets initiative (SBTi), Carbon Trust, or equivalent accredited verification bodies. **Publicly communicated** > The targets that are shared with any third party and are not restricted solely to an internal audience within the reporting entity. Examples include public disclosures, communications to investors, etc. **Net Zero** > Net zero means cutting greenhouse gas emissions to as close to zero as possible, with any remaining emissions re-absorbed from the atmosphere. **Science-based target** > Science-based targets provide a clearly-defined pathway for companies to reduce greenhouse gas (GHG) emissions, helping prevent the worst impacts of climate change and future-proof business growth. Targets are considered ‘science-based’ if they are in line with what the latest climate science deems necessary to meet the goals of the Paris Agreement.

Validation: What evidence is required?

#### Evidence Evidence is required, but it will NOT be subject to manual validation in 2026. However, GRESB will utilize it to inform future validation developments, ensuring the quality of net-zero target-setting exercises. This evidence requirement aims to capture what documentation participants have available to substantiate their net-zero target. The indicator collects the underlying characteristics of the target and does not mandate a single Net Zero definition in line with a specific framework. Validation Basics

## Scoring

Scoring: How does GRESB score this indicator?

Scoring is based on the **existence** of a GHG reduction target aligned with Net Zero. **Open text box:** The open text box is not scored and is for reporting purposes only. Scoring Basics

## Frequently Asked Questions

Does GRESB recommend Net Zero frameworks for adherence?

No. GRESB does not mandate a single Net Zero definition in line with a specific framework.

How should I report a single “Scope 1+2 + Scope 3” target when the scopes have different reduction percentages?

GRESB recommends reporting a weighted average reduction percentage based on emissions volume. Example: * Scope 1+2 target: Reduce Scope 1 + 2 emissions 50% from a baseline of 100,00 tCO₂. * Scope 3 target: Reduce Scope 3 emissions 20% from a baseline of 200,000 tCO₂ The weighted average reduction is calculated as:\ (100,000 × 0.50 + 200,000 × 0.20)÷(100,000 + 200,000) = 0.30 In this example, the reported combined target would be a 30% reduction.

If the entity's targets and asset-level emissions reporting differ in scope and/or metric, will this have any implications on how GRESB plots an entity's progress towards those targets?

Participants must flag which assets are included in the entity's Net Zero target (as reported to T1.2) in the GHG section of the Asset Portal. GRESB will use this data to plot the entity's progress towards its target in an additional Benchmark Report insight. However, the insight will only display performance data of the same scope — and of the same scope 2 accounting method — as the target metric selected in T1.2. For example, if the entity sets targets using a market-based method, but does not report market-based emissions, GRESB will not plot its performance against the reported targets.

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References

CDP Climate Change Reporting Guidance, 2019: C4.1 Recommendations of the Task Force on Climate-Related Financial Disclosures June 2017: Metrics and Targets- C Science Based Targets initiative, 2020 Whole life carbon assessment for the built environment, RICS professional standards and guidance, UK, 2017 SBTi Corporate Net-Zero Standard, version 1.1, April 2023

## Get Support: Solution Providers **GRESB Solution Providers** are independent, third-party organizations within the GRESB Partner network that offer specialized products, tools, and services to support sustainability performance outside the GRESB Assessment process. The organizations below deliver commercially available solutions designed to help drive improvement for this indicator. Engagement is managed directly between the reporting entity and the Solution Provider. GRESB will continue to update this section as the GRESB Solution Provider network grows. Please check back regularly to find GRESB Solution Providers who can support your sustainability performance.

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See Directory Profile	/files/JHWT6AJwb7yH7C6BiKpN	The Carbon Trust

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