How Does CBRE Tackle Scope 3 in the Property Industry?

CBRE, the world's largest property management firm, has unveiled a comprehensive plan to tackle greenhouse gas (GHG) emissions across its portfolio.

Its ambitious Climate Transition Strategy aims to achieve net zero carbon emissions by 2040, focusing on Scope 3 emissions, which dominate the company’s carbon footprint.

Buildings are significant contributors to global CO₂ emissions, given their energy demands for heating, cooling and powering operations. With around seven billion square feet under management, CBRE recognises its unique position to influence climate action in the commercial real estate (CRE) sector.

Addressing Scope 3: The toughest challenge

Scope 3 emissions, originating from sources outside a company’s direct control—such as supply chains, tenant energy use and procurement—constitute 99.5% of CBRE’s GHG emissions. This category presents the greatest obstacle to achieving net zero but also the largest opportunity to drive impactful change.

CBRE’s strategy sets ambitious goals for 2030, including reducing Scope 1 and 2 emissions by 50% and decreasing emissions per square foot across client-managed properties by 55%.

These targets align with its Science-Based Targets initiative (SBTi) validated goals, ensuring the firm’s commitments meet rigorous environmental standards.

Robert Bernard, Chief Sustainability Officer at CBRE, highlights the complexity of addressing Scope 3: “Minimising GHG emissions—particularly across the supply chain—can be complex, which is why we’ve outlined the actions we’ll take in our Climate Transition Strategy to reach our net zero goal by 2040.”

The four pillars of CBRE’s strategy

CBRE’s Climate Transition Strategy is structured around four key pathways:

1. Maximising resource efficiency
   The firm aims to optimise energy usage through smarter design and operation of facilities. By leveraging technology, CBRE reduces waste and ensures buildings operate efficiently.

2. Increasing renewable energy
   By expanding renewable energy procurement, CBRE is committed to powering both its corporate operations and client properties sustainably. As of 2023, 23% of its corporate energy use came from renewable sources, up from 16% in 2022.

3. Electrifying operations
   Electrification plays a central role in decarbonisation. CBRE plans to transition building systems and vehicles to electric alternatives, aligning with its goal of a fully electrified fleet by 2035.

4. Decarbonising the supply chain
   By fostering partnerships and collaborating with suppliers, CBRE aims to lower emissions throughout its supply chain, setting an example for other companies in the CRE sector.

These pathways encompass initiatives for both CBRE’s direct operations and its role in managing properties for clients, amplifying its impact on global emissions.

Tracking progress and scaling impact

CBRE has already made significant strides in reducing emissions.

Since 2019, the company has decreased total Scope 1, 2 and 3 emissions by 18%. Corporate Scope 1 and 2 emissions alone have fallen by 25%, thanks to optimised office operations and increased use of renewable energy.

Robert notes the importance of demonstrating leadership: “We developed our plan in part to show our clients and suppliers what is possible and what actions will drive progress. Their success in reducing emissions is our success.”

Further milestones include a 12% reduction in electricity use and a 9% reduction in natural gas use across corporate offices from 2019 to 2023. With a goal of sourcing 100% renewable energy for corporate operations by 2025, CBRE is well-positioned to achieve its 2030 Scope 1 and 2 targets as early as 2026.

The acquisition of NRG Energy’s renewable energy advisory group has also strengthened CBRE’s capabilities, enabling the firm to offer comprehensive support for clients transitioning to low-carbon solutions.

CBRE’s Climate Transition Strategy exemplifies how a global industry leader can navigate the complexities of decarbonisation.

By prioritising Scope 3 emissions and setting clear pathways, the company is not only advancing its sustainability goals but also encouraging the broader CRE sector to follow suit.

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