As climate risk assessment and reporting becomes mandatory and mainstream, the ability to understand and assess climate risk accurately and comprehensively will be critical, and will confer significant strategic advantage.
Forward-thinking real estate investors, working to understand the risk held in their portfolios, have begun considering market-level impacts as a way to fully measure the effects of climate change on specific investment properties. But until now, there has not been a comprehensive framework and toolkit enabling this work.
That’s why in July, The Climate Service, a leader in climate risk analytics, launched a study designed to guide comprehensive market-level climate risk assessment for real estate investments. The best way to do this work is through a framework such as that described in this report — capturing the full picture of market impacts.
Going beyond existing research and providing a structured approach to analyzing the relationship between projected physical climate hazards, policy, economics, and demographics, the study considers five different factors:
1. Municipal Adaptation
2. Building-Level Adaptation
3. Insurability
4. Rental Market Growth
5. Liquidity.
During this session, The Climate Service will provide important takeaways from this study and the strategies investors are now employing to assess the market-level impacts of climate change.
