Climate Change Adaptation
The future climate poses clear and material risks to the real estate sector. In addition to the physical and social impacts of extreme weather, growing regulatory pressures and changes in market preference are also impacting investment performance.
According to leading research, 45% of the value of global investment portfolios could be lost as a result of a short-term market shift in response to climate risk, equating to a staggering $35.4tn. Importantly, research also suggests the economic benefits of early action will result in significantly higher returns in the long run.
Therefore, businesses require clear, comparable and consistent information on the financial risks posed by current and future climate change.
TFT helps real estate clients understand their potential climate-related risks, opportunities, and the financial impact on their properties. We develop strategies to manage climate-related risks and improve resilience.
Working in partnership with world-leading academics in the field of climate change, TFT takes a multi-disciplinary approach to assessing the changing physical exposure and vulnerability of portfolios or individual assets to current and future probabilistic climatic scenarios by:
- Determining material climatic threats, analysing exposure and vulnerability, and allocating risk against probabilistic climatic scenarios such as global temperature fluctuations
- Identifying short-term adaptation measures for high-risk assets as part of a strategy to improve resilience
- Establishing climate change mitigation opportunities for individual assets, settlements, and/or portfolios
- Providing cost estimates of adaptation and mitigation measures
Outcomes of the analysis support the identification of climate-related opportunities, asset capital allocations and risk distribution in preparation for transformation towards a low-carbon built environment, and ultimately to avoid the risk posed by stranded assets.
TFT offers additional supporting services including:
- Thermal comfort analysis
- Daylight, sunlight and overshadowing assessment
- Green building certification including BREEAM and LEED