Navigating physical climate risks

Essential insights for real estate professionals

Published on
29/01/2025

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The rise in climate-related disasters is becoming a pressing challenge for the Real Estate sector. The risks vary by region, they affect the value, safety, and long-term performance of assets. Regulators are embedding climate risk into non-financial reporting, while businesses are actively developing strategies to address these challenges and plan for the future.

Climate risk assessments are increasingly vital in real estate as the industry faces growing challenges from climate change. To navigate these challenges, climate risk assessments have become an indispensable tool for stakeholders in the industry.

Why Understanding Physical Climate Risk Matters to You

As a real estate professional, you are likely aware of the significant financial threats posed by physical climate risk. Increasingly frequent extreme weather events, rising sea levels, and higher temperatures can disrupt your operations, inflate costs, and diminish the value of your properties. It is crucial to understand these climate-related challenges to protect your investments and ensure their long-term viability.

The urgency to address physical climate risk is growing, especially as the impacts of climate change become more apparent. Additionally, the evolving regulatory landscape—such as the EU Taxonomy, which aims for a climate-resilient society by 2050—underscores the importance of making investments that can withstand these inevitable changes. This is also incorporated in the CSRD, Corporate Sustainability Reporting Directive, which mandates that companies disclose details about their sustainability practices, including climate risk management.

Empowering You Through Informed Decision-Making

Our Climate Resilience team is dedicated to providing you with actionable insights that will help you effectively navigate the challenges posed by physical climate risks.

Ensuring Compliance and Building Trust

Our Physical Climate Risk Assessments comply with all relevant regulatory and disclosure standards, including the EU Taxonomy and requirements for sustainable certifications. This commitment helps your organization meet growing expectations for transparency and responsible investment practices. Our team developed one study that integrates the requirements to comply with both the EU Taxonomy, which can be used for CSRD reporting, and BREEAM In-Use standards. In this way we support companies in a cost- and time efficient way! For real estate professionals, understanding and addressing physical climate risks is vital, as regulatory compliance increasingly intertwines with investment strategies and financial performance. By proactively managing these risks, you can not only fulfill CSRD requirements but also enhance your reputation among potential investors and tenants who prioritize sustainability. Position Yourself as a Leader in Sustainable Real Estate

By prioritizing the understanding and management of physical climate risk, you protect your assets and establish yourself as a leader in sustainable real estate. Our assessments align with EU Taxonomy, CSRD standards, and BIU criteria, demonstrating your commitment to responsible investment practices and appealing to sustainability-minded investors.

OUR COMPREHENSIVE APPROACH IS TAILORED TO YOUR NEEDS:

1. Identifying Exposure to Physical Climate Hazards:

We assess potential climate-related risks and evaluate your assets' exposure, giving you a clear picture of the possible risks.

2. Evaluating Vulnerability and Conducting Risk Assessments:

Our experts conduct thorough analyses to determine how sensitive your assets are to climate impacts, considering factors like location, asset type, and current resilience measures.

3. Recommending Customized Adaptation Strategies:

Based on our assessments, we provide tailored strategies designed to enhance your properties’ resilience to climate change and mitigate associated risks.

By assessing the vulnerability and adaptability of your assets, we deliver realistic assessments of the risks involved. This empowers you to identify specific adaptation measures and investment strategies, ensuring you are well-prepared to tackle the challenges of physical climate change.

Take the initiative to manage climate risks effectively and enhance your investment appeal today.

Together, we can navigate the complexities of a changing climate and ensure your success in the real estate market.

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