What is Climate Risk?
Climate Risks can impact humans, animals, nature and man-made environments, and infrastructure, including real estate.
They are usually divided into two categories – physical and transitional.
Physical climate risks result from climate hazards, such as extreme weather events: hurricanes, storms, extreme heat, cold, or precipitation that could result in flooding. In addition to these acute hazards, there are chronic conditions, that more persistently linger due to climatic changes, exacerbating risks, such as droughts, water stress or heat stress.
Transitional risks are risks associated with the costs and efforts of transitioning to a lower carbon economy – but they are also associated with opportunities such as new solutions and technologies.
Who needs to consider it?
Climate risks can be experienced by anyone.
Their consideration is relevant to all real estate investors and asset managers. Climate risks are already impacting the built environment from damage during extreme climate change-fuelled weather events or from needing to comply with stringent energy efficiency or carbon emissions intensity requirements and regulations.
What can you do?
The first step is to deepen your understanding of the actual risk and its materiality for an asset or portfolio.
Climate Resilience analysis helps to understand how vulnerable the asset/portfolio is to transitional and physical climate risks and what types of solutions can be put in place to manage that risk.
“Knowing more is better.”
How can EVORA help?
Our Climate Resilience Strategy and Disclosure team at EVORA readily offers consulting services to conduct in-depth climate risk assessments – for transitional and physical risks – for assets and portfolios. We can also develop regulations and/or certification framework-aligned assessments and resilience strategies.
In addition, we offer the ability to “dig deeper” with asset-level vulnerability analyses, which allow a more in-depth understanding of the climate risk to the building envelope and its surroundings.
We can then offer appropriate recommendations for solutions to increase the resilience of an asset or an entire portfolio and related investments.
Our team also supports real estate managers and investors with TCFD framework alignment and reporting, including climate scenario analysis, implementation and climate-related disclosures.
EVORA’s deep understanding of complementary sustainability services, such as ESG strategy development, and alignment with regulatory and certification frameworks, such as GRESB, CREEM, and BREEAM, allows us to comprehensively support your Fund, portfolio or asset-level sustainability needs.
We are proud to have supported some of the largest organisations make principles-based disclosures on ESG-related activity
“EVORA has been a strong partner as we continue to develop our ESG policy and actions. They have a deep understanding of the real estate markets; this was a critical piece in their support of our TCFD agenda as we seek to further embed ESG principles and climate resilience across all elements of the investment cycle.”
Jonathan Flaherty, Global Head of Sustainability and Building Technology Innovation, Tishman Speyer
“EVORA’s ability to deliver practical solutions on the ground across multiple jurisdictions as well as engage at strategic level with our Board sets them apart from other providers in this space. They have become a trusted advisor to Patrizia.”
Martin Trodden, Director, PATRIZIA