Experts weigh in on mitigating climate risk in CRE

Experts weigh in on mitigating climate risk in CRE

Climate risks as a direct financial impact that requires a short and long-term view.

In recent years, the commercial real estate sector has significantly bolstered efforts to identify the most pressing climate risks posing a threat to assets and portfolios across the market. However, despite improvements in recognizing the physical and transitional risks that have been brought about by the climate crisis, the focus has remained largely on the (undeniably critical) environmental impact; to provide a more holistic overview of the risks facing the market — and to drive greater action to advance ESG goals — owners and operators in the industry must work to better understand and communicate with stakeholders how these climate risks are having a direct financial impact.

With this in mind, BREEAM USA recently brought together a lineup of industry experts to discuss both the challenges and opportunities around mitigating climate risk, especially as a means of advancing sustainability goals and retaining asset value in the short- and long term.


Panelists included:
  • Benjamin Hochron, Vice President of Asset Management at AXA Investment Managers,
  • Lindsay Brugger, Vice President of Resilience at ULI
  • Chang Liu, Head of Climate & Energy at RE Tech Advisor

The conversation — moderated by BREEAM’S US Director of Operations Breana Wheeler — focused on contextualizing and providing best practices to address the wider business-oriented impacts of climate risk across commercial real estate. Throughout the discussion, the participants leveraged combined decades of sustainability and real estate expertise to highlight several top-of-mind considerations, including:

1. To safeguard asset value, owners and operators should be taking advantage of financial incentives for sustainable improvements and proactively implementing sustainable measures that support resiliency.

2. Climate risk assessments can be valuable tools for assessing how an asset’s climate risks may impact the balance sheet; an accurate assessment requires holistic analysis, which can be supported by coordinating with partners who have access to relevant historical data.

3. Energy efficiency is a top-of-mind and easily comprehensible first step for improving an asset’s ESG performance and climate risk profile.

If you missed the webinar, you can view the recording here.

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Asset Publisher

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