An increase in the number and intensity of severe weather-related events, such as hurricanes and flooding, has demonstrated more clearly the real risks that climate change presents to real estate, according to Urban Land Institute and Heitman’s report Climate risk and real estate investment decision-making.
It is an urgent and complex challenge, which must be addressed, but for which the industry does not yet have a clear strategy.
The report is the result of collaboration between ULI and global investment manager Heitman, which has developed a proactive approach to address climate risks and is at the forefront of investment managers looking to better quantify these risks. The timeliness and relevance of the topic was clearly demonstrated by the high response rate of ULI members asked to participate.
The research addresses the state of current practice for assessing and mitigating climate risk in real estate as well as highlighting best practices across the industry. Although not all investors and investment managers have been public about their work, many have started to develop innovative strategies to assess and mitigate near-term and long-term climate risks.
To read the full report, click here.