Glossary

Glossary

GLOSSARY DECARBONATION & CIRCULAR ECONOMY

  1. Digital materials bank : digital instance of a building managed in the EC Platform.
  1. CRREM: The CRREM is a tool that defines decarbonization pathways by 2050. Based on the IPCC report and Europe's climate ambitions, it aims for a scenario limiting global warming to 1.5 or even 2°C maximum for each country and sector of activity.
  1. CSRD (Corporate Sustainability Reporting Directive) : European directive on extra-financial reporting, adopted in France in December 2023.
  1. PEMD Diagnostics: Mandatory resource inventory for any significant demolition or renovation, under the AGEC law of February 2020.
  1. Discounted Cash Flows (DCF): The Discounted Cash Flows method consists of determining the income that an asset will generate in the future.
  1. EPD (Environmental Product Declaration – FDES in France) : product sheet compliant with standard EN 15804 and describing the LCA footprints of a product in terms of carbon, water and energy.
  1. ESPR (Ecodesign for Sustainable Products Regulation ): law of July 18, 2024 aimed at encouraging the design and manufacture of sustainable products, while raising consumer awareness of the environmental impact of the products they buy, thus contributing to the transition to a more environmentally friendly economy.   
  1. Identifiers refer to both the user ID and password, to access the modules of the Upcyclea, Net-0 or Reporting platform.
  1. Owner: investor who owns a building.
  1. Noah Platform [1] : The Noah service ( www.noah-remploi.com ) centralizes the deposits of reusable, reconditioned or destocked products from several French marketplaces, manufacturers or recycling centers, as well as the catalog of reusable products from renovations/restructuring of assets.
  1. Digital Product Passport (or DPP) : digital sheet containing the environmental information of a product: composition, toxicity, recycled/biosourced share, future lives, manufacturing locations, EPD data (carbon, water, energy). The DPP has been a European standard since July 18, 2024 (under the ESPR law on eco-design) and will be applicable to all products (excluding food) from 2027. The Upcyclea Platform already contains a library 4 of 10,000 Passports with free access ( www.upcyclea.com/librairie-de-Passeports-circulaires-consultation).
  1. Operational scope of carbon calculation : in accordance with the BEGES decree [2] , the operational scope of a legal entity includes 1) direct GHG emissions which physically originate from the organizational scope [3] of the Legal Entity, 2) indirect emissions which arise from the operations and activities of the Legal Entity as well as, where applicable, from the use of the goods and services which it produces.
Furthermore, as indicated in TR/ISO14069, the IFRS standard adopted since 2019 stipulates that leased equipment and facilities must be included in the scope of consolidation of the financial statement. Consequently, a legal entity that chooses the financial control approach for its GHG statement must include the equipment and facilities it leases in its organizational scope.

In other words, both asset managers and tenants are required to take into account their respective Scope 1/2/3 emissions in their calculations. This interdependence will have a significant impact, both in terms of the content of the lease (low-carbon obligations, audits, etc.), and in terms of the services and advice offered by the asset manager to its tenants to reduce their Scope 1/2/3 emissions, especially for "Scope 3 buildings" (embodied carbon), when the latter are less subject to them due to their activities.
  1. PIRÉE 1 Platform (Inter-actor REEmployment Platform) : Urban mine shared between public and private landlords, launched by Upcyclea, USH, ULI France and ADI, which allows the sharing of inventories resulting from PEMD diagnoses or resources of subscribing actors, the declaration of reuse or upcycling needs, and the provision of a common Resource manager which offers reuse/upcycling ecosystems.
  1. Upcyclea Platform: Circular asset management platform. The Platform manages digital banks of materials from the real estate portfolio, and offers eco-design, reuse, and calculation services for incoming and outgoing ESG indicators (Incoming: Scope 3 carbon and embodied Carbon, health, circularity, economic value – Outgoing: waste and CO2 avoided, water preserved, financial report). It   includes the Upcyclea Net-0, Upcyclea Reporting , Upcyclea Noah and Upcycle Piraeus modules.
  1. Resource Manager : Operator in charge of administering the Upcyclea Platform , and whose function is to manage the resources and needs declared in the Platform, in order to propose recovery ecosystems, to generate environmental and financial indicators.
  1. Scope 1/2/3 : ISO 14064-1:2018 distinguishes six categories of emissions: 1) direct emissions, 2) indirect energy-related emissions, 3) indirect emissions associated with transport, 4) indirect emissions associated with purchased products, 5) indirect emissions associated with sold products, and 6) other indirect GHG emissions. Category 1) is called “Scope 1,” category 2) is called “Scope 2,” and categories 3) to 6) correspond to the definition of “Scope 3.”
In the case of owners or managers of real estate assets, the Scope 3 calculation depends 95% on the products constituting the building (also called “embodied carbon”).
  1. Services : services offered by the Upcyclea Platform , such as: importing resource inventories into the Digital Building Bank, updating the resources in the Digital Bank (quantity, state of wear, availability, etc.), calculating the building's ESG indicators (embodied carbon footprint scope 3 and carbon intensity per m2 , health, reuse, circularity, financial indicators, etc.) required for financial (European taxonomy law) and extra-financial (CSRD directive) reports, suggesting and monitoring the ecosystem for the reuse and upcycling of used resources, as well as the associated recovery indicators.
  1. Circular Signature (or Incoming ESG Indicators) : The Upcyclea Platform Services allow you to calculate the Circular Signature of a building or an entire asset. It includes the following incoming ESG indicators: carbon footprints (embodied carbon scope 3, carbon intensity according to RE2020 and LCBI [ 4] ), health, reuse, circularity, disassembly, share of recycled/biosourced, residual economic values of used resources according to several scenarios, data reliability, etc.
  1. Upcycling : Upcycling involves transforming resources into products of equal or higher quality. For example, used concrete reprocessed into concrete is said to be upcycled; but concrete used as a road base is simply recycled (we could say downcycled because there has been a loss of value).

[1] The Upcyclea, Noah, Piraeus platforms and the passport library are provided by the Upcyclea company

[2] BEGES Decree version 5 of July 2020, relating to the production of Greenhouse Gas Emissions Reports ( https://www.ecologie.gouv.fr/sites/default/files/methodo_BEGES_decli_07.pdf)

[3] ISO 14064-1:2018 describes two approaches to determining the organizational scope. 1) The “equity share” approach: Plant and equipment are included in the organizational scope to the extent of the company’s equity interest in them. 2) The “control” approach: Financial control > 100% of the plant and equipment over which it exercises financial control are included in the organizational scope, or Operational control > 100% of the plant and equipment over which it exercises operational control, i.e., which it operates, are included in the organizational scope.

[4] LCBI: Low Carbon Building Initiative V1.0, BBCA, January 2024



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