Topical Article: Climate leap – How investors are reaching major emissions cuts in existing property portfolios

A full-scope examination of a large section of Varma’s properties (nearly 60 residential buildings, in this case) offered a quicker and more efficient path to reducing emissions than the modernization of individual buildings. LeaseGreen analyzed their portfolio and the analysis is based on the initial data from the customer’s property portfolio, such as data on energy use and location. It is equally important to identify issues related to energy markets and the location of the properties.

The LeaseGreen’s way is to find the most profitable path to the climate objectives of the property investor. According to the analysis, Varma’s residential real estate portfolio consisting of 60 properties, was divided into five different baskets. This analysis was made at the end of 2019, and the energy overhaul on Varma’s first basket was carried out during 2020-2021.

For example, according to the analysis, the energy overhauls carried out on the first basket of 13 properties cut the CO2 emissions of Varma’s entire property portfolio by a fifth. The investment and savings of each improvement are analyzed in detail to reach a comprehensive understanding of the possibilities. The goal is to find the most profitable path to the climate objectives of the property investor. District heating currently accounts for a significant proportion of the carbon dioxide emissions from Varma’s residential properties.

Varma and LeaseGreen previously collaborated on the energy refurbishment of the headquarters of Elisa Oyj, a Finnish Telecom company. The headquarters is owned by Varma, and the partnership focused on reducing the building’s energy consumption and carbon footprint by around 40%. The energy provided by heat pumps will reduce the consumption of district heating and the need for cooling energy. In recent years, the profitability of energy refurbishments has improved clearly due to fast technological development.

Sarianna Sipola, Portfolio Manager, Varma, Finland
Jonni Ahonen, VP, Sales and Accounts, LeaseGreen, Finland

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