Investors have clubbed together to fund a new initiative aimed at assessing climate change transition risk in real estate investment portfolios.

Launched on 16 September in Amsterdam, the project will involve the development of property type-specific decarbonisation pathways. These will help investors understand and mitigate the long-term systemic risk associated with the retrofit investments required to transition to a low carbon economy. Investors will be able to use the pathways as a proxy measure for transition risk and help the real estate industry meet the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD).

Research into the pathways will be carried out by the Austria-based Institute for R