Skip to main content

Real Estate

Below is NZIF 2.0 implementation guidance for real estate. For approaches to achieving the asset level targets and more detailed guidance, please click on the NZIF 2.0 guide below.

Alignment targets
  • Asset alignment target: A 5-year target for increasing the % of AUM (or financed emissions) in material sectors that are ‘aligning’ or ‘aligned’ to a net zero pathway, or achieving net zero’.
  • Engagement threshold target: A minimum proportion of financed emissions are assessed as achieving net zero or ‘aligned’ to a net zero pathway, or are subject to engagement.
  • Include individual direct investments, investments in assets pooled through a fund or trust structure, investments in listed real estate companies, and real estate debt.
  • Include all types of real estate: retail, office, industrial, residential, hotel, lodging, leisure & recreation, education, and technology/science.
  • Include existing real estate assets and those in development.


Criteria underpinning alignment assessment
  • Green ticks represent when a criterion is required to be fulfilled for a particular alignment category to be obtained.
Committed to aligning
Aligning to a net zero pathway
Aligned to a net zero pathway
Achieving net zero

Asset with emissions intensity required by the sector and regional pathway for 2050 and whose operational model will maintain this performance.

Emissions performance: Current absolute or emissions intensity is at least equal to a relevant net zero pathway.

Decarbonisation plan: Development and implementation of a quantified plan setting out a decarbonisation strategy for scope 1, 2, and material scope 3 emissions.

Governance: Governance/management responsibility for targets and/or decarbonisation plan.

Disclosure: Disclosure of scope 1 and 2 emissions, and disclosure of material scope 3, in line with regulatory requirements where applicable or the PCAF Standard.

Targets: Short and medium term targets for scope 1, 2 and material scope 3 emissions in line with science-based ‘net zero’ pathway. These may be absolute, or intensity based: a) where available, a sectoral decarbonisation / carbon budget approach should be used; b) minimum for other assets is a global or regional average pathway.

A long term goal consistent with the global goal of achieving net zero by 2050.

*Additional alignment criteria that a corporate within a high impact material sector needs to meet.

Download PDF reports

Useful resources

Explore further IIGCC resources which offer additional guidance or information which is complimentary to the use of NZIF.