Since S&P Global Ratings launched its Analytical Approach: Second Party Opinions in 2023, 49% (87 of 179 as of Feb. 1, 2025) of its published second party opinions (SPOs) have included green building projects. Of the 87 issuance frameworks reviewed, 45% were from financial institutions, 31% from nonfinancial corporates, and 24% from governments. We view climate transition risk (energy use, heating sources, and embodied emissions) and physical climate risk as the most material environmental factors for commercial and residential buildings throughout their life cycle (see ” ESG Materiality Map: Real Estate “). In our view, biodiversity and resource use, water, and pollution, are also relevant for some real estate activities. We apply our Shades of Green approach in the context Since S&P Global Ratings launched its Analytical Approach: Second Party Opinions in 2023, 49% (87 of 179 as of Feb. 1, 2025) of its published second party opinions (SPOs) have included green building projects. Of the 87 issuance frameworks reviewed, 45% were from financial institutions, 31% from nonfinancial corporates, and 24% from governments. We view climate transition risk (energy use, heating sources, and embodied emissions) and physical climate risk as the most material environmental factors for commercial and residential buildings throughout their life cycle (see ” ESG Materiality Map: Real Estate “). In our view, biodiversity and resource use, water, and pollution, are also relevant for some real estate activities. We apply our Shades of Green approach in the context
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