Climate change is a significant threat across varied sections and in varied regions there has been a consensus about the need for businesses to play key role in ensuring transparency around climate risks and opportunities. To steer climate action, science-based emissions reduction targets validated by Science Based Target initiative (SBTi) and climate change scenario analysis based on the TCFD recommendations have been suggested to be adopted. These aimed to future proof businesses by identifying risks for mitigation and adaptation with the view to deliver value for business, investors, stakeholders and the environment at large. With real estate, contributing to one third of all the global carbon emissions according to UNEP, the responsibility has increased manifolds to address the impact of climate change on real estate portfolio.
This document discusses using quantitative climate risk analysis and economic appraisal of adaptation options to shape climate-resilient development. It summarizes a case study in Barisal, Bangladesh that analyzed current and future flood risk to inform decision-making. The study found flood risk will increase due to development and climate change without action. It identified cost-effective adaptation options like flood-resilient crops, early warning systems, and infrastructure improvements that could reduce risks and maximize benefits. The document advocates integrating such analyses into National Adaptation Plans to prioritize actions and access funding to strengthen climate resilience.
2.5.2 Introduction to quantitative climate risk analysis - MuehlhoferNAP Events
This document provides an overview of quantitative climate risk analysis and adaptation option appraisal. It summarizes a case study on multi-hazard risk mitigation in San Salvador that utilized this methodology. The case study involved quantifying current and future risks from tropical cyclones, floods, and landslides under climate and socioeconomic scenarios through 2040. Risk was assessed for eight asset categories and population. Potential adaptation options were then evaluated based on their ability to reduce risk and costs.
General Introduction to the SYR: focus on the Social Science Aspectipcc-media
The document summarizes key topics from the IPCC AR5 Synthesis Report, including:
1) Four main topics covered in the report focusing on evidence of climate change, impacts, projections, and adaptation/mitigation strategies.
2) Risk and uncertainty are important themes, with both high-probability and low-probability/high-impact outcomes producing high risk.
3) Effective decision-making requires considering a wide range of factors beyond economic assessments alone, including ethics, equity, and diverse perceptions of risk.
4) Adaptation is a complex social process that requires recognizing diverse interests and societal contexts. Transformational adaptation may be needed in some cases.
Guidelines for mainstreaming climate change and key consideration ENVIRONMENTALALERTEA1
The document outlines objectives and approaches for mainstreaming climate change into sector plans and budgets in Uganda. It provides guidelines to help sectors conduct climate impact and vulnerability assessments, identify adaptation and mitigation opportunities, and integrate climate considerations into policymaking, financing, implementation and evaluation. Specific steps are outlined, along with tools to screen projects for climate risks and identify resilience measures to address risks. Progress in institutionalizing climate screening and budget tagging is discussed.
The IPCC is an intergovernmental body established by the United Nations Environment Programme (UNEP) and the World Meteorological Organization (WMO) that assesses scientific information related to climate change. It involves thousands of experts and government representatives and produces comprehensive assessment reports to inform climate policy. The IPCC aims to provide rigorous and balanced summaries of climate science in a policy-relevant but not policy-prescriptive manner. Its reports have informed major international agreements on climate change including the UNFCCC and Paris Agreement.
Adaptation options, needs, opportunities and associated costs: An African Con...ipcc-media
1) The document summarizes key findings from the IPCC's 5th Assessment Report regarding adaptation to climate change in Africa. It outlines increasing vulnerabilities, needs, and options for adaptation across sectors like water, agriculture, ecosystems, and health.
2) It notes that while awareness of climate risks and options is growing, translation to action remains a challenge. Mainstreaming adaptation into development is important to build synergies.
3) Costs of adaptation are estimated to reach billions annually by 2030, far more than current funding, indicating a large adaptation deficit. Successful implementation requires addressing institutional, financial, and knowledge barriers.
1. The authors argue that using average global temperature alone is an inadequate goal for guiding climate policy and that a "basket of vital signs" is needed instead to capture the full risks of climate change.
2. They propose establishing a set of "planetary vital signs" indicators that measure tangible impacts like sea level rise, extreme weather, and effects on ecosystems in addition to temperature.
3. Developing useful indicators requires integrating practical policy needs with climate science and focusing on impacts that matter most to policymakers like economic costs and risks to populations.
- Climate change is a broad issue that involves many scientific disciplines as well as social sciences, business, citizens, politicians and more.
- The main components of the climate system are the atmosphere, hydrosphere, cryosphere, lithosphere and biosphere and their interactions. Human activities like burning fossil fuels and land use changes are releasing greenhouse gases and pollutants that are changing the composition of the air and land.
- Global temperatures have risen due to increased greenhouse gases and will continue to rise substantially without mitigation efforts, leading to severe impacts like water stress, flooding, crop failures and extinctions.
This document discusses using quantitative climate risk analysis and economic appraisal of adaptation options to shape climate-resilient development. It summarizes a case study in Barisal, Bangladesh that analyzed current and future flood risk to inform decision-making. The study found flood risk will increase due to development and climate change without action. It identified cost-effective adaptation options like flood-resilient crops, early warning systems, and infrastructure improvements that could reduce risks and maximize benefits. The document advocates integrating such analyses into National Adaptation Plans to prioritize actions and access funding to strengthen climate resilience.
2.5.2 Introduction to quantitative climate risk analysis - MuehlhoferNAP Events
This document provides an overview of quantitative climate risk analysis and adaptation option appraisal. It summarizes a case study on multi-hazard risk mitigation in San Salvador that utilized this methodology. The case study involved quantifying current and future risks from tropical cyclones, floods, and landslides under climate and socioeconomic scenarios through 2040. Risk was assessed for eight asset categories and population. Potential adaptation options were then evaluated based on their ability to reduce risk and costs.
General Introduction to the SYR: focus on the Social Science Aspectipcc-media
The document summarizes key topics from the IPCC AR5 Synthesis Report, including:
1) Four main topics covered in the report focusing on evidence of climate change, impacts, projections, and adaptation/mitigation strategies.
2) Risk and uncertainty are important themes, with both high-probability and low-probability/high-impact outcomes producing high risk.
3) Effective decision-making requires considering a wide range of factors beyond economic assessments alone, including ethics, equity, and diverse perceptions of risk.
4) Adaptation is a complex social process that requires recognizing diverse interests and societal contexts. Transformational adaptation may be needed in some cases.
Guidelines for mainstreaming climate change and key consideration ENVIRONMENTALALERTEA1
The document outlines objectives and approaches for mainstreaming climate change into sector plans and budgets in Uganda. It provides guidelines to help sectors conduct climate impact and vulnerability assessments, identify adaptation and mitigation opportunities, and integrate climate considerations into policymaking, financing, implementation and evaluation. Specific steps are outlined, along with tools to screen projects for climate risks and identify resilience measures to address risks. Progress in institutionalizing climate screening and budget tagging is discussed.
The IPCC is an intergovernmental body established by the United Nations Environment Programme (UNEP) and the World Meteorological Organization (WMO) that assesses scientific information related to climate change. It involves thousands of experts and government representatives and produces comprehensive assessment reports to inform climate policy. The IPCC aims to provide rigorous and balanced summaries of climate science in a policy-relevant but not policy-prescriptive manner. Its reports have informed major international agreements on climate change including the UNFCCC and Paris Agreement.
Adaptation options, needs, opportunities and associated costs: An African Con...ipcc-media
1) The document summarizes key findings from the IPCC's 5th Assessment Report regarding adaptation to climate change in Africa. It outlines increasing vulnerabilities, needs, and options for adaptation across sectors like water, agriculture, ecosystems, and health.
2) It notes that while awareness of climate risks and options is growing, translation to action remains a challenge. Mainstreaming adaptation into development is important to build synergies.
3) Costs of adaptation are estimated to reach billions annually by 2030, far more than current funding, indicating a large adaptation deficit. Successful implementation requires addressing institutional, financial, and knowledge barriers.
1. The authors argue that using average global temperature alone is an inadequate goal for guiding climate policy and that a "basket of vital signs" is needed instead to capture the full risks of climate change.
2. They propose establishing a set of "planetary vital signs" indicators that measure tangible impacts like sea level rise, extreme weather, and effects on ecosystems in addition to temperature.
3. Developing useful indicators requires integrating practical policy needs with climate science and focusing on impacts that matter most to policymakers like economic costs and risks to populations.
- Climate change is a broad issue that involves many scientific disciplines as well as social sciences, business, citizens, politicians and more.
- The main components of the climate system are the atmosphere, hydrosphere, cryosphere, lithosphere and biosphere and their interactions. Human activities like burning fossil fuels and land use changes are releasing greenhouse gases and pollutants that are changing the composition of the air and land.
- Global temperatures have risen due to increased greenhouse gases and will continue to rise substantially without mitigation efforts, leading to severe impacts like water stress, flooding, crop failures and extinctions.
The IPCC Fifth Assessment Report from 2008-2014 found that:
1) Humans are the dominant cause of global warming since the mid-20th century.
2) Each successive decade since 1850 has been warmer than the last.
3) Oceans have absorbed over 90% of the increased heat from climate change.
4) Emissions must be rapidly reduced to limit global temperature rise to 2°C.
Scientists - IPCC Working Group II: assessing research on impacts, adaptatio...ipcc-media
The document discusses the work of the IPCC Working Group II on assessing research related to climate change impacts, adaptation, and vulnerability for the 6th assessment cycle. It outlines the group's focus on influencing policy decisions in line with the goals of the Paris Agreement. Key topics to be assessed include risks to vulnerable ecosystems from ocean warming and acidification, risks of high sea level rise beyond 2100, and health impacts of extreme heat. The document emphasizes the need to strengthen climate policies and identify limits to adaptation, as well as the role of conservation and sustainable development in addressing climate change.
Topic related to the Physical Science Basis of Climate Change ipcc-media
The document summarizes key findings from the IPCC's Physical Science Basis report. It discusses how human activities have unequivocally warmed the climate system and that limiting future warming requires substantial emissions reductions. Specifically, it notes that human influence has clearly warmed the atmosphere, ocean and land. If emissions continue, the IPCC projects further warming and changes to all parts of the climate system. The document also summarizes regional projections for West Asia, showing increased temperatures and altered precipitation patterns under different emissions scenarios.
This document discusses the growing costs and impacts of wildfires globally and mechanisms for effective risk transfer. Over the past decade, wildfire occurrences and costs have increased substantially around the world. Currently, a large portion of wildfire costs are uninsured, placing a significant burden on public finances. The document outlines various sources of financial capital that have emerged to cover insurance risk and gives examples of public sector disaster risk financing programs. It also compares indemnity and parametric insurance products and provides recent examples of parametric covers. In closing, it discusses challenges for parametric wildfire solutions and the impacts of climate change in exacerbating wildfire risks.
Findings - A glance on mitigation in the report of IPCC-WGIII AR5Jesbin Baidya
The document summarizes key findings from the Working Group III contribution to the IPCC Fifth Assessment Report on mitigation of climate change. It finds that greenhouse gas emissions continue to rise despite some reduction efforts. Without more mitigation actions, global temperatures are projected to increase 3.7-4.8°C by 2100. Effective mitigation requires changes across all sectors of the economy and large shifts in investment. International cooperation is also essential for significantly reducing climate change impacts given the global nature of the problem.
Climate Change Adaptation and Masnaging Extreme Eventsipcc-media
This document summarizes key points from the IPCC's 2012 Special Report on Managing the Risks of Extreme Events and Disasters to Advance Climate Change Adaptation (SREX). The SREX report defined climate extremes and risk, and observed increases in the frequency and intensity of climate extremes. It discussed how adaptation and disaster risk management can help address increasing disaster risk from climate change impacts. Effective strategies incorporate development benefits, address current risks while preparing for future changes, and integrate local and scientific knowledge.
The ius economic perspective is an analytical tool that delivers a broader vision from its multidisciplinary core, based on law, ecologic economics and ecology. It is dialogic and argumentative and is rooted in the defense of human rights, it adheres to nature´s laws, as described by thermodynamics.
Follows that an energy metric is presented as being more transparent, universal, clearly understood, thus better suited for the mission. The new actors for global action: civil society and business will value it. The resulting transparency will facilitate financing.
The IPCC was jointly established in 1988 by the World Meteorological Organization and the United Nations Environment Programme to provide comprehensive assessments of the scientific basis of climate change. It produces major reports every 5-7 years that inform international climate change negotiations and policies. The IPCC aims to objectively assess climate science and its impacts in a transparent process involving governments and hundreds of experts. Its reports have progressively strengthened conclusions on human-caused warming and influenced major agreements like the UNFCCC and Paris Agreement. The IPCC also engages in outreach activities to improve communication of its findings.
Climate Change, Public Debt and Financial Crises: an Agent-based Modelling An...OECD Environment
Presentation given during the OECD Expert workshop on Economic Modelling of Climate and Related Tipping Points by Francesco Lamperti, Scuola Superiore Sant'Anna and RFF-CMCC European Institute on Economics and the Environment
The ACPR pilot exercise aims to assess climate-related risks for banks and insurers in France through 2050. It uses consistent scenarios based on international models to analyze transition and physical risks across 55 business sectors. The main challenges for stakeholders are transforming climate assumptions into financial variables, incorporating physical risks that are "smoothed out" over long time horizons, and assessing strategies under dynamic balance sheet assumptions out to 2050, which is very far in the future for financial institutions.
Parliament - IPCC Working Group II: assessing research on impacts, adaptation...ipcc-media
This document summarizes the work of the IPCC Working Group II on assessing research related to climate change impacts, adaptation, and vulnerability for the 6th assessment cycle. It discusses the role of the IPCC in providing comprehensive and objective scientific assessments to inform understanding of climate risk. It also outlines the key reports and findings of past assessment cycles that have influenced international climate policy agreements. Finally, it previews some of the open questions that Working Group II plans to explore further in the 6th assessment cycle, including more detailed analysis of risks associated with warming of 1.5°C versus higher levels.
Key messages from the AR5 WGI with focus on Saudi Arabia and the regionJesbin Baidya
The document discusses future climate change in Southeast Asia and extreme events according to the IPCC. It notes that human influences on the climate system are clear based on multiple lines of evidence. If greenhouse gas emissions continue, warming and changes will affect all parts of the climate system. Limiting climate change will require substantial reductions in emissions. The region will likely see increased warming, changes in precipitation patterns including more variable rainfall, and more frequent extreme weather events.
Disaster Risk Reduction (DRR) and Climate Change Adaptation (CCA)FAO
This document discusses Disaster Risk Reduction (DRR) and Climate Change Adaptation (CCA). It defines DRR as reducing disaster risks through analyzing and managing causal factors, reducing exposure to hazards, lessening vulnerability, improving land and environment management, and preparing for adverse events. CCA is defined as adjusting systems in response to actual or expected climate impacts to moderate potential damages or benefit from opportunities. The document outlines international processes and agendas for DRR and CCA and priorities for action. It discusses rationales for and barriers to harnessing synergies between DRR and CCA, and approaches to facilitate their integration, such as improved access to climate information and risk governance.
The IPCC: How it works and what it’s working on ipcc-media
The IPCC was jointly established in 1988 by the World Meteorological Organization and the United Nations Environment Programme to provide comprehensive assessments of the scientific basis of climate change. It has released several assessment reports and special reports that have informed international agreements on climate change. The IPCC involves hundreds of scientists and experts from around the world and uses principles of openness, transparency, and neutrality with respect to policy. It prepares reports through working groups that assess different aspects of climate change science and impacts. The current sixth assessment cycle will produce several special reports and three main reports by 2022 to inform the global response to climate change.
Climate Change Mitigation: key messages of the IPCC Fifth Assessment Report a...ipcc-media
Climate Change Mitigation: key messages of the IPCC Fifth Assessment Report and content of the Sixth Assessment Report by Diána Ürge-Vorsatz, Vice-Chair of the IPCC Working Group III
Academia - SESSION 2: IPCC role and activitiesipcc-media
The Intergovernmental Panel on Climate Change (IPCC) was established in 1988 by the World Meteorological Organization and the United Nations Environment Programme. It assesses scientific information relevant to understanding climate change. The IPCC has produced several assessment reports since 1990 that have informed international climate change agreements and policies. The IPCC's role is to objectively evaluate climate science and its impacts in a comprehensive and transparent manner. Its reports involve hundreds of scientists and are used as an input in international climate negotiations under the UNFCCC.
The potential impact of climate-related change on the assets owned and managed by institutional
investors is significant. Asset managers can expect present-day losses of US$4.2trn to the US$143trn of current manageable assets as a result of climate change by 2100. Find out more>> http://bit.ly/1GJIL7Q
This document discusses the risks of climate change to global financial assets. It estimates that under a business-as-usual emissions scenario, expected climate change losses to the $143 trillion in global manageable assets by 2100 would be $4.2 trillion on average. However, worse-case scenarios of 5°C or 6°C of warming could result in losses of $7 trillion or $13.8 trillion respectively. These climate risks threaten investors' ability to fulfill their fiduciary duties. However, the risks can be substantially reduced through mitigation efforts to keep warming below 2°C. Some large investors have already started reducing climate risks in their portfolios by investing in low-carbon solutions and divesting from high-carbon
The IPCC Fifth Assessment Report from 2008-2014 found that:
1) Humans are the dominant cause of global warming since the mid-20th century.
2) Each successive decade since 1850 has been warmer than the last.
3) Oceans have absorbed over 90% of the increased heat from climate change.
4) Emissions must be rapidly reduced to limit global temperature rise to 2°C.
Scientists - IPCC Working Group II: assessing research on impacts, adaptatio...ipcc-media
The document discusses the work of the IPCC Working Group II on assessing research related to climate change impacts, adaptation, and vulnerability for the 6th assessment cycle. It outlines the group's focus on influencing policy decisions in line with the goals of the Paris Agreement. Key topics to be assessed include risks to vulnerable ecosystems from ocean warming and acidification, risks of high sea level rise beyond 2100, and health impacts of extreme heat. The document emphasizes the need to strengthen climate policies and identify limits to adaptation, as well as the role of conservation and sustainable development in addressing climate change.
Topic related to the Physical Science Basis of Climate Change ipcc-media
The document summarizes key findings from the IPCC's Physical Science Basis report. It discusses how human activities have unequivocally warmed the climate system and that limiting future warming requires substantial emissions reductions. Specifically, it notes that human influence has clearly warmed the atmosphere, ocean and land. If emissions continue, the IPCC projects further warming and changes to all parts of the climate system. The document also summarizes regional projections for West Asia, showing increased temperatures and altered precipitation patterns under different emissions scenarios.
This document discusses the growing costs and impacts of wildfires globally and mechanisms for effective risk transfer. Over the past decade, wildfire occurrences and costs have increased substantially around the world. Currently, a large portion of wildfire costs are uninsured, placing a significant burden on public finances. The document outlines various sources of financial capital that have emerged to cover insurance risk and gives examples of public sector disaster risk financing programs. It also compares indemnity and parametric insurance products and provides recent examples of parametric covers. In closing, it discusses challenges for parametric wildfire solutions and the impacts of climate change in exacerbating wildfire risks.
Findings - A glance on mitigation in the report of IPCC-WGIII AR5Jesbin Baidya
The document summarizes key findings from the Working Group III contribution to the IPCC Fifth Assessment Report on mitigation of climate change. It finds that greenhouse gas emissions continue to rise despite some reduction efforts. Without more mitigation actions, global temperatures are projected to increase 3.7-4.8°C by 2100. Effective mitigation requires changes across all sectors of the economy and large shifts in investment. International cooperation is also essential for significantly reducing climate change impacts given the global nature of the problem.
Climate Change Adaptation and Masnaging Extreme Eventsipcc-media
This document summarizes key points from the IPCC's 2012 Special Report on Managing the Risks of Extreme Events and Disasters to Advance Climate Change Adaptation (SREX). The SREX report defined climate extremes and risk, and observed increases in the frequency and intensity of climate extremes. It discussed how adaptation and disaster risk management can help address increasing disaster risk from climate change impacts. Effective strategies incorporate development benefits, address current risks while preparing for future changes, and integrate local and scientific knowledge.
The ius economic perspective is an analytical tool that delivers a broader vision from its multidisciplinary core, based on law, ecologic economics and ecology. It is dialogic and argumentative and is rooted in the defense of human rights, it adheres to nature´s laws, as described by thermodynamics.
Follows that an energy metric is presented as being more transparent, universal, clearly understood, thus better suited for the mission. The new actors for global action: civil society and business will value it. The resulting transparency will facilitate financing.
The IPCC was jointly established in 1988 by the World Meteorological Organization and the United Nations Environment Programme to provide comprehensive assessments of the scientific basis of climate change. It produces major reports every 5-7 years that inform international climate change negotiations and policies. The IPCC aims to objectively assess climate science and its impacts in a transparent process involving governments and hundreds of experts. Its reports have progressively strengthened conclusions on human-caused warming and influenced major agreements like the UNFCCC and Paris Agreement. The IPCC also engages in outreach activities to improve communication of its findings.
Climate Change, Public Debt and Financial Crises: an Agent-based Modelling An...OECD Environment
Presentation given during the OECD Expert workshop on Economic Modelling of Climate and Related Tipping Points by Francesco Lamperti, Scuola Superiore Sant'Anna and RFF-CMCC European Institute on Economics and the Environment
The ACPR pilot exercise aims to assess climate-related risks for banks and insurers in France through 2050. It uses consistent scenarios based on international models to analyze transition and physical risks across 55 business sectors. The main challenges for stakeholders are transforming climate assumptions into financial variables, incorporating physical risks that are "smoothed out" over long time horizons, and assessing strategies under dynamic balance sheet assumptions out to 2050, which is very far in the future for financial institutions.
Parliament - IPCC Working Group II: assessing research on impacts, adaptation...ipcc-media
This document summarizes the work of the IPCC Working Group II on assessing research related to climate change impacts, adaptation, and vulnerability for the 6th assessment cycle. It discusses the role of the IPCC in providing comprehensive and objective scientific assessments to inform understanding of climate risk. It also outlines the key reports and findings of past assessment cycles that have influenced international climate policy agreements. Finally, it previews some of the open questions that Working Group II plans to explore further in the 6th assessment cycle, including more detailed analysis of risks associated with warming of 1.5°C versus higher levels.
Key messages from the AR5 WGI with focus on Saudi Arabia and the regionJesbin Baidya
The document discusses future climate change in Southeast Asia and extreme events according to the IPCC. It notes that human influences on the climate system are clear based on multiple lines of evidence. If greenhouse gas emissions continue, warming and changes will affect all parts of the climate system. Limiting climate change will require substantial reductions in emissions. The region will likely see increased warming, changes in precipitation patterns including more variable rainfall, and more frequent extreme weather events.
Disaster Risk Reduction (DRR) and Climate Change Adaptation (CCA)FAO
This document discusses Disaster Risk Reduction (DRR) and Climate Change Adaptation (CCA). It defines DRR as reducing disaster risks through analyzing and managing causal factors, reducing exposure to hazards, lessening vulnerability, improving land and environment management, and preparing for adverse events. CCA is defined as adjusting systems in response to actual or expected climate impacts to moderate potential damages or benefit from opportunities. The document outlines international processes and agendas for DRR and CCA and priorities for action. It discusses rationales for and barriers to harnessing synergies between DRR and CCA, and approaches to facilitate their integration, such as improved access to climate information and risk governance.
The IPCC: How it works and what it’s working on ipcc-media
The IPCC was jointly established in 1988 by the World Meteorological Organization and the United Nations Environment Programme to provide comprehensive assessments of the scientific basis of climate change. It has released several assessment reports and special reports that have informed international agreements on climate change. The IPCC involves hundreds of scientists and experts from around the world and uses principles of openness, transparency, and neutrality with respect to policy. It prepares reports through working groups that assess different aspects of climate change science and impacts. The current sixth assessment cycle will produce several special reports and three main reports by 2022 to inform the global response to climate change.
Climate Change Mitigation: key messages of the IPCC Fifth Assessment Report a...ipcc-media
Climate Change Mitigation: key messages of the IPCC Fifth Assessment Report and content of the Sixth Assessment Report by Diána Ürge-Vorsatz, Vice-Chair of the IPCC Working Group III
Academia - SESSION 2: IPCC role and activitiesipcc-media
The Intergovernmental Panel on Climate Change (IPCC) was established in 1988 by the World Meteorological Organization and the United Nations Environment Programme. It assesses scientific information relevant to understanding climate change. The IPCC has produced several assessment reports since 1990 that have informed international climate change agreements and policies. The IPCC's role is to objectively evaluate climate science and its impacts in a comprehensive and transparent manner. Its reports involve hundreds of scientists and are used as an input in international climate negotiations under the UNFCCC.
The potential impact of climate-related change on the assets owned and managed by institutional
investors is significant. Asset managers can expect present-day losses of US$4.2trn to the US$143trn of current manageable assets as a result of climate change by 2100. Find out more>> http://bit.ly/1GJIL7Q
This document discusses the risks of climate change to global financial assets. It estimates that under a business-as-usual emissions scenario, expected climate change losses to the $143 trillion in global manageable assets by 2100 would be $4.2 trillion on average. However, worse-case scenarios of 5°C or 6°C of warming could result in losses of $7 trillion or $13.8 trillion respectively. These climate risks threaten investors' ability to fulfill their fiduciary duties. However, the risks can be substantially reduced through mitigation efforts to keep warming below 2°C. Some large investors have already started reducing climate risks in their portfolios by investing in low-carbon solutions and divesting from high-carbon
- Climate change poses risks of catastrophic and uncertain impacts from rising carbon emissions. Estimating appropriate prices for carbon is challenging due to uncertainties but crucial for risk management.
- Standard utility models used in climate economics calibrate risk preferences too low, underestimating appropriate carbon prices. Higher societal risk aversion, as seen in equity markets, implies much higher carbon prices to account for hard-to-predict climate risks.
- Delaying reductions in emissions increases future mitigation costs and disaster risks. Higher carbon prices now can lower total costs by incentivizing early emissions cuts and new technologies.
The document summarizes the findings of a physical climate risk analysis conducted on a sample portfolio provided by UNEP FI. Key insights include:
- River flooding and coastal flooding pose the highest risks to assets in the portfolio.
- The largest risks are concentrated in real estate assets in Canada, Australia, South Africa, Turkey, and the US.
- Assets in the 'real estate activities' sector face the greatest overall risk in the portfolio.
This 3 sentence summary provides the high level information from the document:
The document analyzes the Stern Review report on climate change policy and discusses key points such as the economics of choosing a goal for global action on climate change, the social cost of carbon, and conclusions from the report. It examines evidence that the benefits of strong early action on climate change outweigh the economic costs of inaction, and suggests stabilization goals for atmospheric concentrations of greenhouse gases between 450-550ppm CO2 equivalent.
Blueprint Fossil Fuel Industry Transition From Carbon TrackerEnergy for One World
The document introduces Carbon Tracker Initiative's Blueprint Series, which aims to provide fossil fuel companies a roadmap for managing risks from an energy transition to a low-carbon future. It outlines key risks like commodity price risk, demand risk, and capital allocation risk. It argues companies should assess lower demand scenarios and have governance processes to manage transition risks. The goal is for companies to test their ability to cope with a climate-secure energy system consistent with limiting global warming to 2 degrees Celsius.
- Climate change presents risks and opportunities to investors through physical, technological, regulatory and social changes. Physical risks include more frequent extreme weather events. Technological risks include disruption from renewable energy and electric vehicles. Regulatory risks include tighter emissions standards. Social risks include changing consumer preferences.
- Meeting emissions reduction targets will require large investments in green infrastructure but current infrastructure spending is insufficient. Removing fossil fuel subsidies could save governments money while incentivizing green technologies.
- All investors should consider how to manage climate-related risks, exploit opportunities, and potentially have a positive impact through climate-aware investing strategies.
- 80% of FTSE 100 companies identify substantive climate change risks, with utilities identifying the highest proportion of high significance risks. Many companies perceive international physical risks more than UK risks due to operating globally.
- Opportunities related to climate adaptation are seen as current, suggesting expectations of a green economy are influencing business decisions now. However, most physical climate risks are expected to impact over a longer time period.
- Less than half of responding FTSE 100 companies incorporate climate adaptation into their business strategies, focusing mainly on assets, logistics and finance. Engagement with policymakers occurs but is less than engagement around climate mitigation.
- The document is a report analyzing responses from 89 FTSE 100 companies regarding risks and opportunities from climate change and their adaptation strategies.
- Key findings include that 80% of responding companies see substantive risks from climate change, with utilities identifying the highest risks. Companies focus more on international rather than UK risks. Adaptation strategies vary significantly by sector.
- Opportunities related to climate adaptation are seen as current, suggesting companies expect benefits from green business decisions now. However, risks are often seen as having longer term impacts.
The document is a preview of IRENA's forthcoming World Energy Transitions Outlook 2023 report. It finds that:
1) Current pledges and plans will result in global emissions that are 16 gigatonnes higher than what is needed by 2050 to keep warming below 1.5°C.
2) Annual investment in the global energy transition must quadruple to USD 5 trillion on average to achieve the 1.5°C pathway.
3) Most progress has been in the power sector, but greater efforts are needed in sectors like transport and heating to accelerate the transition worldwide.
Many businesses and governments have been reporting on environmental and climate data for over 15 years now, but the way they do is set to change. Following the UN’s Paris
Agreement to address climate risk by cutting greenhouse gas emissions, financial regulators are increasingly concerned about the systemic risks that climate change poses to the financial
system. After the 2008 financial crisis, regulators do not want any disorderly transitions in the market due to a misallocation of capital
NGO data manipulation of financial markets?
Everywhere data has been manipulated to suite or fit
the Greenpeace & Co 100% WindSolar UTOPIA?
Not 1 word on Methane 10,000 billion tons of Gas? Puts long term large Green Energy investment decisions into an unforeseeable level of risk, as the go no go or careful timing for these very capital intensive investments in the long term, is suddenly unimaginable or non existing 4 the investor = Not a word Not 1 in Carbon Tracker?
Business guide on carbon emission redution and sustainabilityBarney Loehnis
This document provides a 6-step guide for businesses to reduce emissions and addresses climate change. It discusses the risks of climate change and regulations, measuring emissions, setting reduction targets, implementing initiatives, offsetting remaining emissions, and tracking progress. Solutions discussed include energy efficiency in buildings, lighting, office equipment, and green procurement. The business case for action includes cost savings, competitive advantage, and responding to future regulations and consumer expectations.
The WWF report identifies solutions to meet growing global energy demand through 2050 without exceeding a 2-degree Celsius temperature rise. It finds that existing sustainable energy technologies could meet demand if deployed rapidly and at scale. However, urgent action is needed in the next 5 years to set policies driving this transition, as delays will increase costs and risks. Key solutions identified are improving energy efficiency, stopping deforestation, developing renewable technologies concurrently, building infrastructure for flexible fuels, replacing coal with gas in the near-term, and implementing carbon capture and storage. Global cooperation and leadership are imperative to guide investment towards sustainable options.
The document proposes 7 principles to integrate climate risk into bank capital requirements from Basel III to Basel IV. It argues that climate risk is currently undercapitalized and that banks are not incentivized to accelerate their transition to green financing. The principles aim to make climate risk a pillar 1 risk, create a climate stability fund financed by banks, use the fund to absorb unexpected losses from green loans, gradually increase capital requirements for transition risk aligned with IPCC scenarios, and implement a variable capital ratio based on the color of bank assets. It also suggests isolating climate effects on credit risk and reviewing the ASRF model to better anticipate climate crisis impacts.
Climate Change and Capital Markets FINAL 05-13-2015Luca Toscani
This document provides an overview of climate change and its impacts on capital markets. It begins with a summary of climate science, noting that global temperatures have risen 0.85°C since 1880. Nine of the ten hottest years on record have occurred since 2000. It then reviews strategies for responding to climate change, including mitigation to reduce greenhouse gas emissions and adaptation to address impacts. The remainder of the document details challenges in integrating climate risk into capital markets and provides options for mitigating climate change through emissions reductions and incentivizing carbon pricing. It concludes with recommendations for further research.
This document contains forward-looking statements from Eni regarding future performance based on current expectations and assumptions. Certain statements regarding management objectives, trends, margins, costs, risk management and competition are forward-looking in nature. Actual results may differ from those expressed or implied due to various risk factors. These factors include fluctuations in oil, gas and product prices; strong competition; safety, security and environmental regulation; risks of oil and gas exploration and development projects; uncertainties in natural gas reserves estimates; and political and economic instability.
An application of ‘willingness to pay’ method as a quantifier for environment...Odysseas Kopsidas
1) The document discusses a study that uses the willingness to pay (WTP) method to quantify the environmental impact of Lake Kastoria in Greece.
2) A survey of 80 people found that the average WTP to restore the lake was 13.16 euros, with most willing to pay 5 euros. Regression analysis identified factors like the importance of the lake that influenced WTP amounts.
3) The study aims to provide policymakers information on the economic benefits of sustainably managing the lake, as environmental preservation requires costly taxation but generates tourism income. The WTP method was used as market valuation is not possible.
The document summarizes the findings of an interagency working group on estimating the social cost of carbon (SCC) to be used in cost-benefit analyses of U.S. federal regulations. Key points:
- The group developed estimates for the SCC in 2010 dollars per metric ton of CO2 for years 2010-2050 using three integrated assessment models and considering uncertainty and updated modeling.
- Four SCC estimates were selected for regulatory analysis, ranging from $5 to $65 per ton in 2010, increasing over time.
- The estimates are intended to reflect the economic damages of climate change and be updated periodically as scientific and economic understanding improves.
This document provides a summary of a dissertation report on the costs and benefits of transitioning to net-zero emissions by 2050. It outlines the key requirements needed to achieve net-zero, including physical infrastructure changes, economic adjustments, and policy commitments. The report focuses on estimating the economic shifts in demand, capital allocation, costs and jobs that would occur between now and 2050 under a hypothetical net-zero scenario. The analysis covers major emitting sectors like power, transportation, buildings, and land use across 69 countries, but notes limitations and uncertainties in any energy transition modeling.
Similar to Setting Newer Positive Verticals for Investors and Real Estate Developers – (20)
The document summarizes key discussions and presentations from the Innovate 4 Climate event in 2021. The event focused on mobilizing climate finance and shaping green development. Panelists discussed aligning climate ambitions like NDCs with long-term strategies, financing climate action in cities, and tools to promote green finance. They emphasized blended finance, carbon pricing, and regulatory reforms to translate ambitions into concrete climate actions and investments.
Country’s progress and sustained economic growth is a reflection to the way we dwell in the place we thrive and strive. Building healthy dwellings and developing niche in sync with Industry 4.0 interface which are based on IoT,data analytics and smart grids are the latest revolution to march ahead by applying it in real estate sector.
Covid 19 pandemic outbreak has resulted in unrest, medical emergency, uncertainty and global economic slowdown. It has also resulted in wide open gap and unforeseen inadequacy in investment in pandemic preparedness and response. Though a number of guidelines, protocols, panel and commissions have been set up for recommendations and preparedness on how to better identify, handle, prevent, respond in such cases, government seems to struggle to reconcile and take the advantage edge out of the lockdown as at the primary stage if preparedness and response was taken, it would have not created conflict between health, economy and livelihoods. A citizen centric support to government interventions and protocols given if followed by the citizens shall strengthen government machinery and planning.
Preparedness in cities and other urban settlements is critical for effective local, regional, national and global responses to COVID-19. A well-designed pandemic plan in urban settlements allows to respond in a flexible way to varying levels of severity and to refine your response as needed. Education, housing, work, socializing and community kinship shapes the way we live, strive and thrive in cities. Population density is not the only parameter to be blamed for the pandemic in developing countries. The type of housing - township, apartments, independent houses, make shift homes, informal settlements, redevelopment buildings and slums also are a key parameter that hinders controlling the spread or transmission of outbreak. The way we live – sanitation, hygiene, food habits, our environment, transport, connectivity, our social outlook and approach also are detrimental and have a direct bearing for the outbreak to spread to the extent of being a pandemic.
Be it with regard to natural, accidental or intentional means, public health has always been under threat. As is the case with the current COVID 19 pandemic, public health preparedness to prevent, respond to and recover is key for securing country’s overall development and growth.
There is increasing pressure on energy producers from climate risks. One key concept which is gaining prominence in lieu of the risks is “Carbon Bubble” and the related impact of divestment movement. As a part of the Paris climate agreement, 192 countries reaffirmed their commitment to reduce emissions and limiting the global temperature increase to less than 20C. Energy producing companies are under scrutiny from investors, shareholders, employees and customers and other related stakeholders to reduce carbon footprint and to demonstrate that their business are aligned to help build an efficient “Low Carbon Portfolio”. The goal is to channelize investments, assess climate risks and opportunities and mitigate future climate change trajectories, align it as key service for fossil fuel energy divestment, portfolio and asset management.
There is increasing pressure on energy producers from climate risks. One key concept which is gaining prominence in lieu of the risks is “Carbon Bubble” and the related impact of divestment movement. As a part of the Paris climate agreement, 192 countries reaffirmed their commitment to reduce emissions and limiting the global temperature increase to less than 20C. Energy producing companies are under scrutiny from investors, shareholders, employees and customers and other related stakeholders to reduce carbon footprint and to demonstrate that their business are aligned to help build an efficient “Low Carbon Portfolio”. The goal is to channelize investments, assess climate risks and opportunities and mitigate future climate change trajectories, align it as key service for fossil fuel energy divestment, portfolio and asset management.
As part of the Paris Climate Agreement goal of limiting global warming to 2oC, annual emissions reductions from agriculture must reach 1 gigatonne of carbon dioxide equivalent (GtCO2e/yr) by 2030. Plausible options to do this only deliver 21–40% of this target. Agricultural systems are witnessing ambitious goals and require transformative actions. Across food systems actions include: application of next generation technologies, increasing investment flows and improving returns, change in pattern of landholdings, enhancing capacities through skill development and capacity building, and via changes in the distribution and dynamics of the population and labour force. This transformation would generate multitude of benefits such as education, nutrition, health, water, sanitation, and empowerment of women and youth, and transforming rural livelihoods and indigenous communities.
Sustainability is regarded as a key goal for policy makers across all sectors and at all levels, be it with regard to local, regional and global scale. Sustainability as a criteria attribute in real estate sector, which was ignored over a period of years has gained enhanced level of importance in recent years amongst varied stakeholders including developers, investors, owners, tenants, private entities, government bodies and the communities. Policies regarding sustainability have been demonstrated in the Kyoto Protocol, United Nations Principles of Responsible Investment (PRI) and the European Union Directive on Energy Performance of Buildings. Similarly regulation at the city level have council enforcing environmental building codes and have varied rebate options, incentives such as tax breaks, flexible and cost effective financing mechanisms, for green buildings. The real estate sector has both set of risks and benefits associated and most often the risks are associated with future uncertainties in terms of policies, regulation and enforcement. Urban housing and the burgeoning infrastructure requirement have triggered local and regional issues such as energy policies, deforestation, water scarcity, air pollution and over exploitation of resources.
The concept paper with regard to e-voting in India – suggestive policy framework is conceptualized under the Eco Endeavourers Network endeavour initiative – innovation hub and new concepts. It is an endeavour towards greater citizen participation and for their rights and their role in nation building and constitutional affairs. It aims at improving greater security, transparency and to increase the voter turnout, use of limited resources in a resource constraint economy, reduced manpower that are deployed before, during and after the elections are held. Foreseeing increased application of blockchain technology, big data and app based advancement, the paper considers suggestive policy framework of e-voting to oversee the prospects and its suggestive implications for the decision and policy makers. Prospects of having an internet enabled/e-voting can be an efficient alternative to the current EVM voting based elections.
World Oceans Day 8th June, 2019 provides an opportunity to honour, protect, and conserve the oceans. United Nations Sustainable Development Goal # 14 commits countries to unite over what is a truly global responsibility – the protection of our oceans and the lives that depend on it.
The aim of this primer is to putforth a perspective on - how does sustainability matters in real estate sector and why it should be a prime agenda of firms in making environmental friendly decision making and operations. Real estate sector can showcase their stewardship towards environment via efficient environmental friendly policies. There are varied environmental standards which are applied at the builings or infrastructure level in real estate sector, however what it lacks is uniformity in sustainability applicability to the sector. The type of material used, the design per se, installations and retrofits all matter in real esate sustainability mission and vision. Understanding environmental and climate risks and its real implications is a intricate challenge for property investors.
The document discusses World Environment Day which focuses on beating air pollution. It notes various sources of air pollution including household, industry, transport, agriculture, and waste burning. Poor air quality negatively impacts health. Cities concentrate health hazards and risks as the global population becomes increasingly urbanized. Effective solutions require addressing pollution sources, improving transportation systems, strengthening urban governance, and benchmarking cities based on air quality, sustainability, and public health indicators.
The Eco Endeavourers Network is requesting participation in a one-day online campaign and awareness drive on their Facebook and Twitter pages on June 5, 2019 to commemorate World Environment Day, which has the theme of "Beat Air Pollution." The goal is to strive for sustainable, clean, healthy and climate-positive cities and communities and pledge to "climate proof our cities" on this Environment Day.
This 22nd May, 2019 as we commemorate the International Day for Biodiversity with the theme: Our Biodiversity, Our Food, Our Health, the focal point is on how biodiversity acts as a basis for transforming food systems and improving health and well-being. The theme also aims to leverage the opportunity in knowledge transfer, spreading awareness about the dependency on our food systems for nutrition, health and sustainability.
The document discusses the increasingly important role of sustainability practitioners in organizations, especially as chief sustainability officers (CSOs). It argues that CSOs play a key role in communicating the business value of sustainability strategies to investors and stakeholders. However, many companies still do not have CSOs and sustainability practitioners do not always have influence or decision-making power equal to their responsibilities. The document calls for more companies to formally recognize the role of CSOs and empower them to steer sustainability efforts as part of the C-suite level of management.
As a part of annual Diwali celebration at school of my son, Podar Jumbo Kids at Hiranandani Estate, Thane conducted an event Diwali Fete at their school premises on 2nd November, 2018. Eco Endeavourers Network (EEN) leveraged this opportunity and held a “Sustainable Development Goals Educative and Awareness Kiosk” for the school children and parents accompanying them by raising awareness on United Nations Sustainable Development Goals (SDGs) and in simple way provided educative and fun learning and play mode games and handout/tool kit mentioning what each of the 17 goals mean.
COP14 - The Conference of the Parties 14 to the Convention on Biological diversity conference kick started on 17th of November with pre-conference meet ups and briefing on 13th, 14th, 15th and 16th November. The conference by United Nations aims at calling upon the decision makers from more than 190 countries to intensify their efforts to reduce and stop the biodiversity loss and protect the ecosystems that support food and water security and health for billions of people. The theme of this year’s ongoing conference is “Investing in Biodiversity for People and Planet”.
The World Water Week from 26th - 31st 2018 event concluded yesterday. As like every year, it was organized by Stockholm International Water Institute (SIWI). It highlighted water as a critical resource. It emphasized nature based solutions as way forward towards resolving water issues. This year the theme was – “Water, Ecosystems and Human Development”. Be it with regard to water shortage, water quality, water issues in extreme weather events - floods, water has been the most pressing issue and challenging resource that needs to be addressed. Healthy ecosystems allow plant and animal life to thrive and strive and offer multitude of benefits for human development and all these work together as microcosm in itself and for developing synergy, work in co-operation during trans-boundary conflicts with regard to water, water governance strengthening, and equitable access to clean water.
The newsletter for the month of August 2018 main focus is Sustainability with the thought "We co-create a culture, when we practice sustainability in our day to day life"
Kinetic studies on malachite green dye adsorption from aqueous solutions by A...Open Access Research Paper
Water polluted by dyestuffs compounds is a global threat to health and the environment; accordingly, we prepared a green novel sorbent chemical and Physical system from an algae, chitosan and chitosan nanoparticle and impregnated with algae with chitosan nanocomposite for the sorption of Malachite green dye from water. The algae with chitosan nanocomposite by a simple method and used as a recyclable and effective adsorbent for the removal of malachite green dye from aqueous solutions. Algae, chitosan, chitosan nanoparticle and algae with chitosan nanocomposite were characterized using different physicochemical methods. The functional groups and chemical compounds found in algae, chitosan, chitosan algae, chitosan nanoparticle, and chitosan nanoparticle with algae were identified using FTIR, SEM, and TGADTA/DTG techniques. The optimal adsorption conditions, different dosages, pH and Temperature the amount of algae with chitosan nanocomposite were determined. At optimized conditions and the batch equilibrium studies more than 99% of the dye was removed. The adsorption process data matched well kinetics showed that the reaction order for dye varied with pseudo-first order and pseudo-second order. Furthermore, the maximum adsorption capacity of the algae with chitosan nanocomposite toward malachite green dye reached as high as 15.5mg/g, respectively. Finally, multiple times reusing of algae with chitosan nanocomposite and removing dye from a real wastewater has made it a promising and attractive option for further practical applications.
Improving the viability of probiotics by encapsulation methods for developmen...Open Access Research Paper
The popularity of functional foods among scientists and common people has been increasing day by day. Awareness and modernization make the consumer think better regarding food and nutrition. Now a day’s individual knows very well about the relation between food consumption and disease prevalence. Humans have a diversity of microbes in the gut that together form the gut microflora. Probiotics are the health-promoting live microbial cells improve host health through gut and brain connection and fighting against harmful bacteria. Bifidobacterium and Lactobacillus are the two bacterial genera which are considered to be probiotic. These good bacteria are facing challenges of viability. There are so many factors such as sensitivity to heat, pH, acidity, osmotic effect, mechanical shear, chemical components, freezing and storage time as well which affects the viability of probiotics in the dairy food matrix as well as in the gut. Multiple efforts have been done in the past and ongoing in present for these beneficial microbial population stability until their destination in the gut. One of a useful technique known as microencapsulation makes the probiotic effective in the diversified conditions and maintain these microbe’s community to the optimum level for achieving targeted benefits. Dairy products are found to be an ideal vehicle for probiotic incorporation. It has been seen that the encapsulated microbial cells show higher viability than the free cells in different processing and storage conditions as well as against bile salts in the gut. They make the food functional when incorporated, without affecting the product sensory characteristics.
Evolving Lifecycles with High Resolution Site Characterization (HRSC) and 3-D...Joshua Orris
The incorporation of a 3DCSM and completion of HRSC provided a tool for enhanced, data-driven, decisions to support a change in remediation closure strategies. Currently, an approved pilot study has been obtained to shut-down the remediation systems (ISCO, P&T) and conduct a hydraulic study under non-pumping conditions. A separate micro-biological bench scale treatability study was competed that yielded positive results for an emerging innovative technology. As a result, a field pilot study has commenced with results expected in nine-twelve months. With the results of the hydraulic study, field pilot studies and an updated risk assessment leading site monitoring optimization cost lifecycle savings upwards of $15MM towards an alternatively evolved best available technology remediation closure strategy.
Optimizing Post Remediation Groundwater Performance with Enhanced Microbiolog...Joshua Orris
Results of geophysics and pneumatic injection pilot tests during 2003 – 2007 yielded significant positive results for injection delivery design and contaminant mass treatment, resulting in permanent shut-down of an existing groundwater Pump & Treat system.
Accessible source areas were subsequently removed (2011) by soil excavation and treated with the placement of Emulsified Vegetable Oil EVO and zero-valent iron ZVI to accelerate treatment of impacted groundwater in overburden and weathered fractured bedrock. Post pilot test and post remediation groundwater monitoring has included analyses of CVOCs, organic fatty acids, dissolved gases and QuantArray® -Chlor to quantify key microorganisms (e.g., Dehalococcoides, Dehalobacter, etc.) and functional genes (e.g., vinyl chloride reductase, methane monooxygenase, etc.) to assess potential for reductive dechlorination and aerobic cometabolism of CVOCs.
In 2022, the first commercial application of MetaArray™ was performed at the site. MetaArray™ utilizes statistical analysis, such as principal component analysis and multivariate analysis to provide evidence that reductive dechlorination is active or even that it is slowing. This creates actionable data allowing users to save money by making important site management decisions earlier.
The results of the MetaArray™ analysis’ support vector machine (SVM) identified groundwater monitoring wells with a 80% confidence that were characterized as either Limited for Reductive Decholorination or had a High Reductive Reduction Dechlorination potential. The results of MetaArray™ will be used to further optimize the site’s post remediation monitoring program for monitored natural attenuation.
Setting Newer Positive Verticals for Investors and Real Estate Developers –
1. 1
Setting Newer Positive Verticals for
Investors and Real Estate Developers –
A Primer on Know-how on Climate Value Risk
for Real Estate Sector and how to protect their
Portfolio
2020
Eco Endeavourers Network
Striving for the Planet in Peril
Authored by: Dr. Prachi Ugle Pimpalkhute
2. 2
How to Initiate Setting Positive Verticals for Investors and Real Estate
Developers?
Beginners Guide for Setting Real Estate Portfolio
Climate change is a significant threat across varied sections and in varied regions there has been a
consensus about the need for businesses to play key role in ensuring transparency around climate
risks and opportunities. To steer climate action, science-based emissions reduction targets
validated by Science Based Target initiative (SBTi) and climate change scenario analysis based on
the TCFD recommendations have been suggested to be adopted. These aimed to future proof
businesses by identifying risks for mitigation and adaptation with the view to deliver value for
business, investors, stakeholders and the environment at large. With real estate, contributing to one
third of all the global carbon emissions according to UNEP, the responsibility has increased
manifolds to address the impact of climate change on real estate portfolio. Also climate risk has
added another variable that needs to be addressed in evaluating “Value at Risk” by developing and
implementing steps to safeguard client’s investments in real estate properties. Climate resilience
here means the future of communities and citizens who are connected to the buildings, who reside
needs to be better managed and be served to strengthen and cater to their benefits. Considering
this, the investors and real estate developers have a major role to play in moving the world to a low
carbon future. Qualitative and quantitative approach will be needed to prioritize the development
and deployment of effective asset level climate mitigation strategies in real estate sector.
“The onus is to Walk the Talk on Climate Value Risk and on how to better manage the
real estate asset portfolio”
Ever since the “Task Force on Climate-Related Financial Disclosures” (TCFD) released its final
recommendations in 2017, more and more financial institutions across the globe are responding
to climate risk. Also, leading investors, perceive strong connection between the ability to generate
positive returns and capacity to manage the risks posed by climate change. Effective asset
allocation and management decision making depends on inputs on risks institutions and on how
their investments are exposed and also on how climate risk creates opportunity amidst their
exposure to slowdown. A main crucial point of mention is that TCFD providesframework to assess,
measure and disclose information by key stakeholders both externally and internally. Another,
key point of relevance is prime targets for emission reductions to be in line with below 20 targets.
As such though the in-use energy intensity of building is falling, the reduction is quite less than
what is required to offset the rise in global floor area and also in bending the sector emission
trajectory strongly downwards.
3. 3
Since buildings are energy-intensive to build and operate, they are key targets in global efforts to
reduce carbon emissions. Also, since two-thirds of the overall building stocks currently in most
countries is expected to be in-situ in 2050 according to UNEP, there will be need of deep and
potentially costly retrofits to increase energy efficiency and in switching towards lower carbon
power sources to meet expected jurisdictive requirements as cities and countries target on
net-zero emissions. Without upgrading the design, fittings and plan outs there shall be risk of
buildings which are inefficient becoming “Stranded.” To match with the asset level and whole of
portfolio analysis TCFD most recommended “Climate Value at Risk” (CVaR) and “Warming
Potential” metrics would be best suited for assessing the impact of climate change related
transition and physical risks on real estate property value. Also the policy risk (transition risk)
model which combines top down and bottom up hybrid methodology to assess policy risks from
future efforts to address climate change. Moving ahead, the physical risk model utilizes climate
hazard data for the set of assets where they are located.
Methodological steps in the Regulatory Transition and Physical Risk computations as per
UNEP
Regulatory Transition Risks
Physical Risks
Assets
Energy
/Emissions
Reduction
Requirements
Costs
Assets Emissions Locations Costs
Climate
VaR
Climate
VaR
4. 4
According to a report by UNEP “Changing Course” – Real Estate: the transition risk modelling
includes a 3°C Scenario (equivalent to the NDCs of the Paris Agreement), a 2°C scenario, and a
1.5°C Scenario (“Carbon Net Zero”). Emissions reductions required from the buildings sector are
based on a fair share principle, with the reduction for buildings equal to the share of emissions
from buildings out of the country’s total emissions. Country-level targets in the 2°C scenario are
calculated by amplifying the emission reduction targets in the NDC-compliant 3°C scenario using
the 2°C-compliant levels in line with the UNEP Gap report. For 1.5°C levels, the annual reduction
requirements are driven by the assumption that all buildings are carbon neutral by 2050.
UNEP states that emissions reductions are calculated against benchmark emission intensities
which are country and building-type specific. Asset-level carbon reductions for Scope 1 and 2
emissions rely on reported/actual data and are compared to reduction pathways for the 3°C, 2°C,
and 1.5°C compliant scenarios. The greenhouse gas (GHG) reduction requirements are given a
cost to the building owner using modelled future carbon prices according to the scenario.
Discount factors are utilized to calculate the present value of the cost of the emission reductions.
The results are also displayed as the level of anthropogenic warming an owner ‘s investments
correspond to – the asset or portfolio’s warming potential.
The physical risk modelling captures two types of physical climate risk: chronic risks, which
manifest slowly over time (extreme heat, extreme cold, and severe wind conditions), and acute
risks, which are the result of extreme weather events such as tropical cyclones and coastal
flooding. The methodology used to assess physical risks for real estate covers the financial
impacts due to asset damage by climatic events and trends for commercial and residential
buildings. The formula includes:
Methodological Components of the Physical Risk Model
VULNERABILITY Cost Function
HAZARD Extreme Weather
EXPOSURE Asset
Expected Cost = Vulnerability * Hazard * Exposure
5. 5
Most of the physical risks impacts are estimated under Business-As-Usual (BAU) scenario, rather
than different policy scenarios. Also, more so extreme physical risks are covered in an
‘aggressive’ scenario.
The CVaR for chronic risks is derived from costs from physical property damage as well as
changes in the operational costs to specific buildings. Thresholds for damage occurrences are
calculated for each of the chronic risks, and damage functions assigned for conditions that exceed
these thresholds.
Furthermore, calculation from asset damages and changes in operating needs are then
discounted for the present value. The Climate Value-at-Risk is the present value of cost in relation
to Gross Asset Value (GAV).
According to UNEP report Changing Course – Real Estate: For acute physical risks, value at risk
calculations are based on projections of future intensity and frequency derived from selected
hazard models. Costs are quantified based on expected damages, calculated as the product of the
value of the facility, and the proportion of damage expected. Similar to chronic risks, the
difference between future and current costs from the hazard are assessed and then discounted
for present value. To demonstrate the utility of the modelling and the information generated,
assets from several individual participating institutions are pooled into single portfolio. The data
is then anonymized so that no specific asset information or owner/manager details are disclosed.
The analysis of the portfolio reveals an aggregated CVaR of -1.9% of gross asset value, based on
the 2°C transition risk scenario and the average outcome of the physical risk scenario. The value
at risk significantly sits with the physical risk: -1.57% of the -1.9% total is due to physical rather
than transition risk factors. The findings also suggest that the transition CVaR is more sensitive
to the scenario utilized than is the case with the physical risk modelling. The transition costs
more than double moving from a 2°C to a 1.5°C scenario. Overall, the portfolio shows a weighted
warming potential of 3.16°C. Compared to the global Business-as-Usual (BAU) predicted
temperature rise of 3.8°C, the portfolio generally performs better in terms of carbon efficiency
compared to industry at large benchmarks but still is some distance from what is collectively
needed to avert the worst effects of climate change.
Results from the transition analysis are then mapped by region and property type against the
asset value and the carbon emission reduction requirements. Properties which have high
reduction requirements and a low value per m2 may be considered high risk: these properties
could face high retrofitting costs that may be difficult to absorb considering the lower property
value.
Physical Risk Impacts - Business –As-Usual (BAU) + Aggressive Scenario
Chronic Risks - Cost from physical property damage
+ Operational costs to specific buildings
6. 6
Data modelling shows that average Climate Value-at-Risk can appear relatively low across
portfolios and selectively for individual assets. Also missing hazards to which modelling
challenges remain (such as fluvial flooding and wildfire); and modelling being limited to direct
impacts and excluding indirect ones (e.g., climate change if unaddressed will create an economy-
wide strain on growth and GDP which will indirectly affect real estate values). Public policy and
private actions are aligning with strengthening political commitment as global leaders
implement measures to keep temperature to ‘’well below 2°C “as was set out at the UN Climate
Summit in Paris in 2015. Also the second set of nationally determined contributions (NDCs) are
due to be recommitted by the parties at UNFCCC - COP26 in December 2020 (nearly 90 countries
have registered building-sector actions in their current NDCs), though COP 26 meet at the
conference level platform has been cancelled in lieu of COVID 19 pandemic, however
at the virtual/online level platform conference and its deliberations will be done to derive best
possible solutions, recommendations and major outcomes. Earlier in September, 2019, 77
countries and more than 100 cities committed themselves by setting up targets to be net zero
carbon emissions by 2050 at the Climate Action Summit; and 3,000 city-level commitments were
registered under the United Nations Framework Convention on Climate Change (UNFCCC).
SETTING REAL ESTATE PORTFOLIO – Starting, Growing and Implementing
Starting: A real estate portfolio is a group of different investments assets that are being hold and
managed to achieve financial goals and set new positive verticals for the real estate sector. It
includes, planned catalog of current and past real estate dealing, be it with regard to rental
properties, REITs or for rehabs to have ease of financial returns. Not all real estate portfolio shall
look the same, the matter that are considered part of the portfolio will generally be dependent
on a combination of factors such as their aim, time horizon and risk tolerance. Risk and incentives
are inherently interconnected with real estate investment, so the risk tolerance will ultimately
be decided by an investor’s willingness to lose some–or all–of their original investment in pursuit
of achieving their financial targets. A well-designed portfolio will basically include personal
investment goals and strategies, the intrinsic workings of deals completed and currently owned,
as well as success or failure rate. The type of real estate investment, one has in the portfolio will
play significant role in achieving the goal – such as rental properties and multifamily properties
aim is to achieve passive income, while assets such as wholesaling and rehabs look into accruing
short-term gains.
Real Estate Portfolio building depends upon the following aspects:
NUMBERS: They provide a window towards transparency in the very way deals are done.
It shall include each of the investment asset being broken by various numbers such as
purchase price, transaction or holding costs. Profit, repair costs and sales price.
FINANCING: Includes how finding and structuring the financing options of the deals is
done. Also whether financing is being done through traditional institutes like Banks or
from private money lenders is looked upon.
IMPROVEMENT COSTS: Includes operating costs, associated costs and how to leverage
the potential of earning profits.
7. 7
Growing of Real Estate Portfolio:
In order to grow a real estate portfolio, the key aspect shall be leveraging the potential to pursue
newer positive verticals. It includes:
Using the asset to resource to advantage
Collection of assets being leveraged to gain credibility in the market.
Reducing risks by diversifying the portfolio
Implementation:
Implementation includes: executing efficient systems so that economies or savings of scale
become achievable.
Example Case: COVID 19 Pandemic
Are we seeing the Fuzzy Objects or Known Unknowns or is it worsening of market being
considered as the beginning of New Normal?
As regard to housing market bubble, wherein land and residential prices drift far above their
intrinsic values, there are parallel disconnects between the cost of a house, the cost to rent, and real
wage growth. Though the rebates and perks being given by the government shows that real estate
sector is in recovery mode, it is other way round as there is downturn of the economic growth bell
rather than that of virus. The resultant of pandemic is construction projects got delayed, new sales
slip and expenses continue to rise. The government have had in March announced under Atma-
Nirbhar Bharat Schemes varied, multiple relief options to the developers which includes: special
liquidity scheme worth INR 30,000 crore for Non-Banking Finance Companies (NBFC’s), Housing
Finance Corporations (HFC’s) and Micro Finance Institutions (MFI’s), which carry a guarantee by the
Government of India. Further, an amendment was made under the Real Estate (Regulation and
Development) Act, wherein COVID-19 disruption will be treated as force majeure and an extension
of 6 months/9 months (depending on which part of the country the project is being constructed)
will be provided for varied to completion timelines. Though it reaped some benefits like infusion of
liquidity to let the survival of green shoots, empowering the promoters as well as the developers’ via
loan rebates by allowing Date of Commencement for Commercial Operations (DCCO) by one year,
and assistance such as collateral and guarantee free loans, equity funding options, better access to
government procurement, e-market linkage and higher thresholds.
What were the Gaps and What would also have been included?
Reduced homes loans – would have benefited those investing in property during that period, also
enhancing sales, huge task of covering the loss time and uncertainty in constant cash flow, migrant
labour crisis – as government has announced a certain percentage of labour at construction sites for
operating - migrant crisis, reduced labour force as per the capacity requirement shall not sustain
projects construction for long as there shall be delay in delivering and causing higher interest rates
which shall neither benefit the sector nor the customers. As regard to the government Atma-Nirbhar
Bharat Scheme for housing other than the above mentioned rebates provided, for any future
amendments to the scheme - government should include Hedge funds along with private equity
curbs towards risks return for reaping long term benefits, optimized asset allocation benefits and
reducing volatility.
8. 8
Implementation: How to Frame Climate Change in Investment Strategy?
In 2017, LaSalle added environmental factors to the housing investment strategy which are a
long term drivers of real estate demand, and includes: Demographics, Technology and
Urbanization. The E-factors include: energy conservation, carbon footprint reduction, climate
change, waste water reduction and waste recycling and green building certification/ratings.
Pricing of E- factors and the return on investment (ROI) for improving environmental
performance of an asset which takes local market into account is most often a Win- Win
Preposition. Also, economic and financial frameworks for analyzing risk return characteristics
of E- factors was introduced. These analytical tools ensure sustainability features are
appropriately priced in an organized way to improve both financial and environmental
performance.
Also introduced are economic and financial frameworks for analyzing the risk-return
characteristics of E-Factors. These analytical tools ensure that sustainability features are
appropriately priced in a well-organized way to improve both financial and environmental
performance. In framing ESG in E factor + investment strategy, concepts like resilience (which
focuses on adaptation strategies for climate change, in contrast to mitigation strategies for
greenhouse gas emissions), social sustainability (which focuses on economic/social justice
issues), and health/welfare (which focuses on the well-being and safety of individuals who
build, occupy and travel to buildings) are included. Real estate investors have a role to play in
how buildings contribute to a healthy and just society, as well as in better stewardship of
natural resources.
• Climate change
Impacts
•v Energy Efficiency
•Energy & Carbon
regulations
• Environmental Standards
Certification
• Water Scarcity
• Unrelenting
Urban Sprawl
•Planning regulations -
Allowing Density
•Impact of Urban Sprawl
•Regeneration of fringe areas
•Evolving customer expectations
(amenities and accessibility)
• Internet and e-commerce
•Retail & LogisticsImpact
•Shared Economy
•Innovation Districts
•Data Analytics &
Algorithms
•Smart Buildings
• Millenium Generation Impact
•Students,immigrants and
refugees
•Ageing, population and longivity
•Adaptive work places for
health, well -being &
productivity
•Rise of South East
Asia
Demographies Technology
Environment
Urban
Sprawl
9. 9
Global Real Estate Index:
The FTSE EPRA/ Nareit Global Real Estate Index is a free-float adjusted, market capitalization-
weighted index designed to track the performance of listed real estate companies in both developed
and emerging countries worldwide. Constituents of the Index are screened on liquidity, size and
revenue.
List of Real Estate Indexes
Global Real Estate (View Global Real Estate ETFs)
Alpha Shares China Real Estate Index
Alpha Shares Emerging Markets Real Estate Index
Cohen & Steers Global Realty Majors Index
Dow Jones Global ex-U.S. Real Estate Securities Index
Dow Jones Global ex-U.S. Select Real Estate Securities Total Return Net Index (USD) Hedged
Dow Jones Global Select Real Estate Securities Index
EPRA/NAREIT Emerging Index
FTSE EPRA/NAREIT Developed Asia Index
FTSE EPRA/NAREIT Developed Asia Real Estate Index
FTSE EPRA/NAREIT Developed Europe Index
FTSE EPRA/NAREIT Developed Index
FTSE EPRA/NAREIT Developed Real Estate ex-North America Index
FTSE EPRA/NAREIT Developed Real Estate ex-U.S. Index
FTSE EPRA/NAREIT Developed Rental ex-U.S. Index
FTSE EPRA/NAREIT Global Real Estate Index
iSTOXX Developed and Emerging Markets ex USA PK VN Real Estate Index
MSCI China Real Estate 10/50 Index
MVIS US Mortgage REITs Index
Northern Trust Global Quality Real Estate Index
S&P Asia Pacific Property Index
S&P Developed BMI Property Index
S&P Developed ex US Property Index
S&P Developed Property Index
S&P Europe Property Index
S&P Global Developed Property Index
S&P Global ex-U.S. Property Index
S&P Global ex-U.S. REIT Index
S&P Global REIT Index
S&P/Citigroup World Ex-U.S. Index
Wisdom Tree Global ex-US Hedged Real Estate Index
Wisdom Tree Global ex-US Real Estate Index
Wisdom Tree International Real Estate Index
10. 10
Real Estate (Real Estate ETFs)
Benchmark Data & Infrastructure Real Estate SCTR Index
Benchmark Industrial Real Estate SCTR Index
Benchmark Retail Real Estate SCTR Index
BofA Merrill Lynch US Real Estate Index
Cohen & Steers Realty Majors Index
Dow Jones U.S. Real Estate Index
Dow Jones U.S. Select REIT Index
Dow Jones U.S. Select Short-Term REIT Index
Dow Jones Wilshire Real Estate Securities Index
FTSE EPRA/NAREIT Global REIT Index
FTSE EPRA/NAREIT North America Index
FTSE NAREIT All Mortgage Capped Index
FTSE NAREIT All Mortgage Capped Index (price return)
FTSE NAREIT All Residential Capped Index
FTSE NAREIT Equity REITs Index
FTSE NAREIT Industrial/Office Capped Index
FTSE NAREIT Real Estate 50 Index
FTSE NAREIT Retail Capped Index
FTSE/NAREIT All REIT Index
Fundamental Income Net Lease Real Estate Index
Hartford Risk-Optimized Multifactor REIT Index
Hoya Capital Housing 100 Index
Indxx Real Asset Income Index
IQ US Real Estate Small Cap Index
KBW Premium Yield Equity REIT Index
Morgan Stanley REIT Index
Morningstar Real Estate Index
MSCI REIT Preferred Index
MSCI US REIT Index
MSCI USA IMI Liquid Real Estate Index
MSCI USA IMI Real Estate Index
MVIS Global Mortgage REITs Index
Northern Trust Real Assets Allocation Index
PPTYX - US Diversified Real Estate Index
PPTYX – U.S. Diversified Real Estate Index
Real Estate Select Sector Index
S&P 500 Equal Weight Real Estate Index
S&P U.S. Property Index
S&P United States REIT Index
S-Network REIT Dividend Dogs Index
Solactive Global SuperDividend REIT Index
Solactive Latin America Real Estate Index
Wachovia Hybrid and Preferred Securities REIT Index
11. 11
Wilshire U.S. Real Estate Investment Trust Index
Wilshire U.S. Real Estate Securities Index
MSCI World Real Estate Index
The MSCI World Real Estate Index is a free float-adjusted market capitalization index that
consists of large and mid-cap equity across 23 Developed Markets (DM) countries*. All
securities in the index are classified in the Real Estate Sector according to the Global Industry
Classification Standard (GICS). DM countries include: Australia, Austria, Belgium, Canada,
Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New
Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the UK and the US. MSCI
FaCS is a standard method for evaluating and reporting the factor characteristics of equity
portfolios. MSCI FaCS provides absolute factor exposures relative to abroad global index - MSCI
ACWI IMI. Neutral factor exposure (FaCS = 0) represents MSCI ACWI IMI.
FACTORS - KEY EXPOSURES THAT DRIVE RISK AND RETURNMSCI FACTOR BOX
Image Source Credit: MSCI World Real Estate Index, msci.com
MSCI FaCS
VALUE
Relatively in expensive Stocks
LOW SIZE
Smaller Companies
MOMENTUM
Rising Stocks
QUALITY
Sound Balance Sheet Stocks
YIELD
Cash Flow Paid Out
LOW VOLATILITY
Lower Risk Stocks
12. 12
Example Case: CBRE GLOBAL INVESTORS’ TCFD ALIGNMENT PROJECT
According to UNEP report Changing Course – Real Estate which focused on investors and TCDF
recommendations: CBRE Global Investors is committed to The Investors Agenda where in
Investors Disclosure Area of Impact and disclosure are in line with the recommendations of the
Financial Stability Board's Task Force for Climate-Related Financial Disclosures (“TCFD”).
Disclosure already includes participation in the pilot reporting based on TCFD recommendations
through the 2018 and 2019 Principles for Responsible Investment (“PRI”) reporting frameworkand
Global Real Estate Sustainability Benchmark (“GRESB”) Resilience Module. CBRE Global Investors’
programme report and act were in line with TCFD recommendations and were led by the Global
Head of ESG, overseen by the Global Responsible Investment Management Committee (“RIMCo”)
and sponsored at the executive level by the Global Chief Operating Officer and Global Chief
Investment Officer. CBRE Global Investors designed its overall approach to TCFD alignment in two
main phases
Phase 1: started in 2018 and is targeted for completion by the end of 2019. This phase covers
initiatives to:
1. Undertake an internal governance gap analysis of existing risk governance and implement any
amendments, and
2. Identify the most comprehensive tools and approaches to conduct portfolio scenario analyses of
risks and opportunities and develop a climate-change value-at-risk heat map.
The next phase, commencing in 2020, with a completion deadline in 2022, envisages full integration
of climate-change scenario analysis in the due diligence process, 'deep-dive' analysis of high-risk
assets identified through scenario mapping, integration of mitigation actions and cost assessments
in asset business plans and transparent reporting. Climate change analysis is thus to be explicitly
included across the investment process. For the indirect business, targeted engagement will be
undertaken with managers and companies to promote adoption and implementation of carbon
Example Case: LINK AND CLIMATE RISK
Link Real Estate Investment Trust (Link) is Asia’s largest REIT and one of the world’slargest REITs
(with focus on retail) in terms of market capitalization. With a diversified portfolio, we aim to
deliver sustainable growth and create long-term value for Unitholders and other stakeholders.
Committed to delivering on our vision to be a world classreal estate investor and manager, serving
and improving the lives of those around us, Link unveiled Vision 2025, outlining medium-term
goals in three focus areas: portfolio growth, culture of excellence and visionary creativity. Link
plays a leading role in the UNEP FI’s effort to develop ground-breaking and comprehensive
guidance on how to assess the impact of climate change on investment portfolios and in particular,
real estate-focused portfolios. Previously, Link relied on a set of primarily qualitative indicators
to quantify the portfolio’s overall climate risk. However, a lack of quantitative transparency and
accountability on specific assets at risk presented difficulties in developing and prioritizing both
portfolio and asset-level climate mitigation strategies. Through this pilot initiative, Link gained
better understanding of the short, medium and long-term climate-related risks the current
portfolio is exposed to, including extreme weather events such as flooding, tropical cyclones and
instances of very hot and cold days.
13. 13
targets, and enhanced reporting. Finally, the Phase 3 target is to achieve a full alignment with TCFD
guidelines in the CBRE Global Investors ESG Report to be published in 2023.
TASK FORCE CLIMATE RELATED DISCLOSURES
Source: CBRE GLOBAL INVESTORS’ TCFD ALIGNMENT PROJECT
PORTFOLIO SCENARIO ANALYSIS PHASE I
GOVERNANCE GAP ANALYSIS
ASSET DATA
• Location
• Type
• Age
• Size
• Value
TRANSITION RISKS
• Policy & Legal (e.g. stringent energy rating regulation)
• Technology (e.g. cost to upgrade an obsolete plant)
• Market (e.g. increased vacancy as tenants require green buildings)
• Reputation (e.g. fossil-fuel infrastructure investment fails to raise capital)
ASSET PERFORMANCE
• Energy & water use intensity
• Carbon intensity
• Energy rating
• Green certification
PHYSICAL RISKS
• Acute (e.g. plant in the
basement of an asset flooded)
• Chronic (e.g. over-heating
damages rail-lines)
OPPORTUNITIES
• Resource efficiency (e.g.
reduced operating cost)
• Energy source (e.g. reduced
exposure to energy cost
increases)
• Products/services (e.g.
increased rent for green RE)
• Markets (e.g. diversification to
green bonds)
• Resilience (e.g. increased
valuation)
POLICIES & PROCEDURES
INVESTMENT RISK
MANAGEMENT
PROCESSES
OPERATIONAL RISK
MANAGEMENT
PROCESSES
MONITORING AND
REPORTING PROCESSES
GOVERNANCE
• Board oversight
• Management role
RISK MANAGEMENT
• Identifying Risks
• Managing Risks
• Integration
METRICS AND TARGETS
GOVERNANCE
Existing risk
management and due
diligence processes
enhanced
VALUE-AT-RISK HEAT-
MAP
14. 14
Source: CBRE GLOBAL INVESTORS’ TCFD ALIGNMENT PROJECT
Warming Potential and Policy Risks:
According to the UNEP Changing Course – Real Estate: The Warming Potential allows investors to
understand the alignment of the portfolio to the global 2°C target. The aggregated portfolio has a
warming potential of 3.16°C (Figure 9), which means that the portfolio is currently in breach of a
global 2°C target. The global Business-as-Usual (BAU) predicted temperature rise is currently
3.8°C. This indicates that the properties in the portfolio are generally performing better in terms
of carbon efficiency compared to industry at large benchmarks, but still at some distance from
what is collectively needed to avert the worst effects of climate change
Global Real Estate Sustainability Benchmark (GRESB): The GRESB is an industry-driven
organization that assesses the sustainability performance of real estate portfolios across the world. It
conducts a survey every year that serves as input for its benchmark. The Sustainable Property Equities
portfolio has an overall average score of 81 in the GRESB analysis, versus 72 for the listed benchmark
average and 72 for the GRESB average out of 1,005 participating entities. The fund has high scores for
both of the two underlying dimensions: for implementation and measurement, it scores 78 (versus 69
for the benchmark), and for management and policy, it scores 88 (versus 80).
UNEP report mentions that cutting carbon footprints in real estate is important as the sector accounts
for nearly 40% of the world’s energy consumption and over 30% of global greenhouse gas emissions.
Robeco Sustainable Property Equities targets an environmental footprint that is at least 20% below
the index average. Additionally, Robeco actively engages with companies in the portfolio on carbon
management.
PHASE 2
PHASE 3
DEEP DIVE ANALYSIS
• High-risk high-value
assets prioritized
• Detailed climate change
impact analysis on asset
level
DUE DILIGENCE
• Phase 1 climate
change scenario
analysis at acquisition
• Enhanced DDQ and
engagement for indirect
ASSET BUSINESS
PLAN
• Phase 1 climate change
scenario analysis at
acquisition
FULL ALIGNMENT
• Increasing data granularity
• Increasing public and client disclosure
• Full TCFD recommendations
compliance 2023
15. 15
According to Carbon Report - SEB Fastighetsfond with focus on Global Real Estate Index
Total carbon emissions
measure the carbon footprint of a portfolio considering Scope 1-2 as well as Scope 3emissions.
Relative carbon footprint
Is a normalized measure of the portfolio's contribution.
It enables comparisons with a benchmark between multiple portfolios, over time and
regardless of portfolio size.
Carbon intensity
Allows investors to measure how much carbon emissions per SEK of revenue are generated.
It therefore measures the carbon efficiency of a portfolio per unit of output.
Next Step after setting up implementation of real estate portfolio is Risk Management:
Risk management are classified into five categories in the framework:
• Real Estate Exposure – Investors’ choice on overall allocation to real estate, within a multi-
asset class portfolio
• Vintage Year Exposure – Timing and pace of real estate exposure, including some
important considerations on measurement and monitoring of vintage year exposure
• Property Sector Exposure – Portfolio concentrations relative to managers, property types,
geography, strategic risk classification, investment life cycle, and investment structure
• Leverage – Approach and exposure to leverage in investment ventures and portfolios,
including suggested metrics for measuring and monitoring leverage.
Conclusions
Moving forward, aligning with the TCFD recommendations and fine tuning disclosures of climate
related financial information will be the key aspect of Real Estate Portfolio. Continuing collaboration
with investors and engaging more closely with city-level and regional-level policymakers to develop
comprehensive climate resilience strategies for housing projects and building real estate portfolio
trajectories.
References
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