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
4. Rental Market Growth
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.