A B D You are a risk manager at a large bank assigned to estimate the...

Transcribed Image Text:

A B D You are a risk manager at a large bank assigned to estimate the amount of financed emissions on a commercial real estate (CRE) loan in your bank's portfolio for a carbon accounting disclosure exercise. The property is a single story office building. This CRE loan is estimated to have a value of $35M and the remaining loan amount is $26.25M. The building is heated and cooled with electricity and you have obtained the following information on emissions factors of various energy sources from the US Energy Information Administration. You have also found that building consumes 17 KWH per square foot of space for this 100,000 square foot building. 1 2 B 4 5 Energy Source Emissions Factor CO2 lbs/KWH Electricity 0.85 Natural Gas 0.92 Electricity 0.85 Oil 2.12 UNK 1.15 6 Question: Using information above what is the estimated amount of financed emissions for this loan? Answer: O 1. Calculate the Attribution Factor in the Financed Emissions formula H L N A B C D E F G H | J K L M N You have also found that building consumes 17 KWH per square foot of space for this 100,000 square foot building. Energy Emissions Source Factor CO2 lbs/KWH Electricity 0.85 Natural Gas 0.92 Electricity 0.85 Oil 2.12 UNK 1.15 Question: Using information above what is the estimated amount of financed emissions for this loan? Answer: 1. Calculate the Attribution Factor in the Financed Emissions formula 2. Calculate Energy Consumption 3. Calculate Emissions 4. Calculate Financed Emissions A B D You are a risk manager at a large bank assigned to estimate the amount of financed emissions on a commercial real estate (CRE) loan in your bank's portfolio for a carbon accounting disclosure exercise. The property is a single story office building. This CRE loan is estimated to have a value of $35M and the remaining loan amount is $26.25M. The building is heated and cooled with electricity and you have obtained the following information on emissions factors of various energy sources from the US Energy Information Administration. You have also found that building consumes 17 KWH per square foot of space for this 100,000 square foot building. 1 2 B 4 5 Energy Source Emissions Factor CO2 lbs/KWH Electricity 0.85 Natural Gas 0.92 Electricity 0.85 Oil 2.12 UNK 1.15 6 Question: Using information above what is the estimated amount of financed emissions for this loan? Answer: O 1. Calculate the Attribution Factor in the Financed Emissions formula H L N A B C D E F G H | J K L M N You have also found that building consumes 17 KWH per square foot of space for this 100,000 square foot building. Energy Emissions Source Factor CO2 lbs/KWH Electricity 0.85 Natural Gas 0.92 Electricity 0.85 Oil 2.12 UNK 1.15 Question: Using information above what is the estimated amount of financed emissions for this loan? Answer: 1. Calculate the Attribution Factor in the Financed Emissions formula 2. Calculate Energy Consumption 3. Calculate Emissions 4. Calculate Financed Emissions