ESG SDDS Wiring-Guide

Weighted average of the stranded/misaligned year is based on carbon intensity of all assets in the portfolio (e.g. using CRREM pathways).
 

"This indicator follows the same methodological principles as ESG4.4.1 (Energy stranded/misaligned year), but is based on carbon intensity (kgCO₂e/m²/year) rather than energy intensity (kWh/m²/year).

Managers should apply CRREM or equivalent pathways, disclose assumptions, data sources, and weighting approach.

Note that in market practice, the term 'Misaligned year' is increasingly used instead of 'Stranded year' to describe the first year an asset no longer aligns with the relevant decarbonisation pathway. For consistency with CRREM, the terms may be considered equivalent. CRREM initiatives refers to the term ‘Stranded asset’ or ‘Stranding year’ with regard to the non-compliance of assets related to the respective decarbonization pathway. ‘Stranding’ does not mean a property gets worthless.

This indicator is one of the six environmental factors considered most relevant for underwriting (see INREV (2025) Integrating environmental considerations in real estate underwriting paper)."