In today's rapidly evolving banking landscape, the need for sustainable practices is more crucial than ever. Banks are not only under pressure to report emissions on their property portfolios voluntarily, as per the PCAF framework or aligned with their own ambitious decarbonisation targets, but also for mandatory sustainability reporting under the EU's Taxonomy. Furthermore, new regulations, such as the Energy Performance of Buildings Directive (EPBD), are expected to set minimum energy class requirements for properties further driving the need for energy performance data.

Yet, there's a significant challenge to address - approximately 80% of single-family homes lack valid Energy Performance Certificates (EPCs). Traditionally, EPCs have been the primary source of energy performance data.

Hemma's groundbreaking solution offers an innovative platform that bridges this data gap, providing energy performance data for all (100%) single-family homes through high-resolution bottom-up data and advanced AI models.

Understanding the baseline

Through Hemma's unique data platform, using bottom-up energy metering data from thousands of households and advanced AI models for energy performance estimates. Banks can augment their mortgage portfolio with high quality energy performance data. The Calculation Model employed by Hemma adheres to official standards from Boverket's Building Regulations, ensuring high data quality. For lower data quality scenarios, advanced AI models come into play, offering superior accuracy. Hemma's unique platform enables banks to supplement their entire mortgage portfolio with energy performance data, utilizing exclusively the data sourced from the land survey data (Lantmäteriet).

Hemma's solution empowers banks with detailed energy performance data for individual properties, complete with quality scores. This enables informed reporting and comprehensive assessments of their property portfolios. Banks, traditionally averaging a data quality score of over 4 in PCAF reporting, can now achieve scores ranging from 2 to 4. In practice this means that banks can lower(better) their PCAF data quality score significantly. The importance of energy performance data extends to evaluating properties at risk of not meeting minimum standards under new EPBD regulations. Furthermore, there's untapped green potential in banks' mortgage portfolios. Establishing a baseline allows banks to identify and engage with households likely within the top 15%, assisting them in obtaining a valid Energy Performance Certificate (EPC).

Translating insights to actions

Presently, constraints on data accessibility stem from Boverket's regulations governing the utilization of energy performance data obtained from EPCs (Energy Performance Certificates). This hinders banks' capacity to initiate meaningful conversations and interact with customers using such information. In contrast, Hemma's platform liberates banks from these restrictions, providing unhindered opportunities to engage with customers based on the data. This empowerment facilitates banks in spearheading a green transition and assisting their customers in a data-driven manner.

Summary and next step

Hemma’s portfolio analysis gives banks the ability for their complete mortgage portfolio to:

• Augment it with energy performance data
• Obtain better accuracy and data scores in carbon accounting
• Verify an energy performance and emission baseline and track the progress
• Use unrestricted data that helps driving a green transition

To support banks in their continued work in decarbonising their mortgage portfolio Hemma has a suite of offerings on-top of their platform. Hemma's turnkey solutions for aggregating and acting on energy performance data fit into the bank's existing processes.

Hemma's innovative platform helps banks meet their reporting requirements, gain valuable insights into their property portfolio, and drive green transitions in a structured, data-driven manner. It's the future of sustainable banking, and Hemma is leading the way.

Interested in learning more about our solutions and how it can power your green transition initiatives? Get in touch.