In real estate, climate resilience is now an investment imperative. With losses in the sector due to climate impacts already mounting and insurance options evolving, market values on certain properties are very likely to diminish. Conversely, investments in resilient assets and in certain markets offer the prospect of improved financial returns over time. Real estate owners and investors need comprehensive, accurate, and transparent climate risk solutions to understand the financial impacts that are likely to be incurred throughout their holding period and those that may affect the property’s ultimate sale price.
The Climate Service works with an array of real estate owners and investors ranging from multinational investment management firms to the US Federal Government.
With the Climanomics® platform, owners and investors assess the physical and transition risks and opportunities from climate change on individual assets as well as on entire portfolios. TCS is also incorporating insights on market impacts such as rental market growth, municipal adaptation, liquidity, and insurability into its analysis of real estate investments to provide a fuller accounting of material climate risks. This analysis is used to support due diligence, strategic portfolio management, and for buying, selling, and pricing decisions. The software also plays a critical role in helping our clients identify opportunities, as defined by the TCFD framework. These may include greater resource efficiency, energy sourcing options, and enhancing the resilience of individual buildings, facilities, or portfolios so investment risk is reduced and assets can weather the impacts that are to come.