CRREM is evolving: What the Retirement of the CRREM Tool Means for Portfolio Transition Risk

Author

Naomi Getzler

Summary

Last week it was announced that Carbon Risk Real Estate Monitor (CRREM) will retire its tool on the 1^{st of} July 2026. Launched in 2018, the landscape of ESG was still in its infancy. The regulatory landscape was fragmented; the Sustainable Development Goals had been announced only two years earlier, and investor expectations around decarbonisation and transition risk were still taking shape and evolving. CRREM is a pioneering tool, translating climate science into practical, asset and portfolio-level guidance for the real estate sector, aligned with the 1.5°C Paris Agreement.

Fast forward to today, transition risk analysis is no longer a peripheral consideration. It is a fundamental component of portfolio decision-making rather than a standalone exercise, embedded in portfolio reporting, net zero target setting and regulatory disclosures. The shift to retire the CRREM Risk Assessment Tool does not represent a step backwards, quite the opposite, it signals that the market has matured enough for the underlying methodology and data to be absorbed into a broader ecosystem across consultancy’s and in-house tools.

What is Changing?

CRREM has confirmed the Risk Assessment Tool will be retired from the 1^st of July 2026. The tool can still be downloaded and used prior to this date. However, there will be no further updates or maintenance. The outputs will quickly become outdated and misaligned with their new evolving data sets.

What is Not Changing

The tool’s retirement absolutely does not signal the end of CRREM. The methodology and data set will continue to shape market norms identifying when assets are misaligned from the CRREM pathways and providing the foundational climate science behind the transition risks that the tool identifies. In place of the standalone tool, CRREM will release:

Open access datasets – this will include the CRREM Pathways, the CRREM Misalignment Year methodology, and all underlying dataset for continued industry usage.

In addition to the data sets, EVORA’s clients will still be able to access:

Integration into reporting platforms – such as SIERA and GRESB, enabling integrated and automated transition risk reporting at scale.
Purpose-built tools – such as EVORA’s Net Zero Audits (at asset level) or Net Zero Pathways (at portfolio level) which apply CRREM methodology and pathways to help plan for future efficiency and deep retrofits required to meet Net Zero for the portfolios target.

Investors, fund, and asset managers should note that the retirement of the tool does not reduce the need for transition risk assessments. On the contrary, it underlines that an ecosystem now exists for the data to be integrated into tools and software developed outside of CRREM where real estate decisions can be made.

Why This Matters

The shift away from a standalone tool reflects CRREM’s focus on provision of climate-science to the real estate industry, specifically:

Market maturity – CRREM is now embedded in tools and software across the industry. Decision-makers no longer need to rely on a single spreadsheet. Instead, they can expect transition risk to be integrated into the tools used for portfolio management, reporting, and strategy.
Integration Needs – Investors and asset managers require transition risk tools to sit alongside financial planning tools to understand the CAPEX required to align assets to Market norms. Siloed tools negate effective planning which creates disconnects between decarbonisation pathways and capital allocation decisions.
Scalability – As reporting obligations became mandatory under frameworks such as SFDR, TCFD and EU Taxonomy, a manual-based spreadsheet approach is not a viable option for large portfolios. Integrating CRREM data in a software platform enables efficient and repeatable reporting across assets at a larger scale.

Implications for Investors

For investors that currently rely on the CRREM tool as part of their transition risk strategy, this is now the right moment to future-proof their approach. The priority should be identifying where the outputs of CRREM currently feed into existing decision-making processes such as sell-side due diligence, portfolio carbon pathway analysis, or asset level screening. The integration of these CRREM aligned tools such as EVORA’s net zero pathway with interventions can be integrated into each of the different work streams.

Immediate Actions for Clients

Understand where the CRREM tool is used in decision-making.
Engage with your platform provider to ensure that the CRREM data is integrated so CRREM pathways can be produced easily and efficiently. Currently, SIERA has a net zero module that allows clients to view their transition risks whilst using CRREM data at the backend.
Consider a Net Zero Audit or Pathway, EVORA’s asset-level and portfolio-level services apply CRREM methodology and removes the burden of in-house tool management.

Closing Remarks

The retirement of the CRREM tool is not an end of an era but an evolution of one. What began as a pioneering spreadsheet-based approach for transition risk, translating climate science of the 1.5° Paris agreed pathway into real estate decision-making tool became a crucial tool within the industry. The retirement of the tool marks the success of CRREM as it becomes integrated into platforms.

For investors and asset managers, the need for CRREM-aligned transition risk assessment remains unchanged. What has changed is who is conducting the analysis and who maintains it.

How EVORA Can Help You Beyond CRREM

EVORA’s platforms and Net Zero services are built precisely for this moment. If you would like to understand how your portfolio is currently positioned against the CRREM pathways, or how to ensure continuity beyond July 2026, our Net Zero team is here to help.

EVORA’s Net Zero Audits, Net Zero Pathways, EVORA’s Misalignment Risk Tool and Net Zero Module are all built on the CRREM methodology and will continue to evolve alongside it as new datasets are released and the tool retires.