Issue link: https://resources.tangoanalytics.com/i/1532682
C O M P L I A N C E Regulations are affecting buildings, both directly with building performance standards and indirectly through other corporate disclosure mandates. Globally, buildings account for 40% of total emissions, but within cities, they are typically responsible for over 60%. So, while national policies are aiming to use tax schemes and corporate disclosure requirements to incentivize decarbonization, city governments looking to turn commitments into action are directly targeting emissions from real estate. . As of early 2024, these policies cover about 25% of all buildings in the U.S. A survey by Deloitte found that nearly 60% of global real estate CFOs said they don't have the data, processes, or internal controls they need to comply with current environmental regulations. Respondents also said it would take significant effort to be in compliance, requiring coordinated efforts across several departments to achieve readiness. Learning from this, and considering the fact that decarbonizing operations and retrofitting buildings involves extended timescales, taking action sooner to future-proof your business rather than waiting for new regulations to be announced will help companies stay ahead. Climate Disclosure Regulations Building Performance Standards Building Benchmarking Laws Climate disclosure regulations, like the SEC Climate Disclosures, CA SB 253 and SB 61, EU's CSRD, and IFRS S1 & S2, are laws that require companies to report on scope 1, 2, and 3 emissions. Building performance standards (BPS) are laws that require emissions reporting for buildings and set performance targets for buildings around energy, gas, water, or greenhouse gas emissions. These targets become stricter over time, driving continuous, long-term improvement. There are currently 14 passed BPS. Many cities and states have enacted energy benchmarking laws that require building owners to report their energy consumption data, typically via ENERGY STAR Portfolio Manager. Copyright © 2025 Tango. All rights reserved. 6