Physical climate risk in the built environment–an institutional investor view

Lian Plass and Spenser Robinson

ERES from European Real Estate Society (ERES)

Abstract: This study investigates how institutional real estate investors incorporate physical climate risk into decision-making. Through interviews, supplemented by survey analysis, the paper discusses current practices, challenges, and motivations in using climate risk analytics for investment evaluation. Key findings reveal variation in risk models, regulatory pressures, and strategies such as resilience investments and cap rate adjustments to address climate-related vulnerabilities. The paper highlights a need for standardized, transparent tools to improve risk comparability and supports the growing integration of climate resilience into valuation practices to bolster long-term asset stability.

Keywords: Climate Risk; institutional investor; Physical Risk; Portfolio (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2025-01-01
New Economics Papers: this item is included in nep-env
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Persistent link: https://EconPapers.repec.org/RePEc:arz:wpaper:eres2025_237

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