Physical climate risk is becoming an increasingly important consideration for real estate investors and managers, as rising temperatures and more frequent extreme weather events begin to affect asset performance, operating costs and insurability. While physical climate risk assessments are now more common, approaches across the market remain fragmented and difficult to compare.
INREV’s latest IQ blog, Navigating physical climate risk in real estate: from assessment to adaptation, builds on INREV’s paper on physical climate risk and explains how a structured, step‑by‑step framework can help investors move from analysis to action. Rather than prescribing a single tool or data provider, the framework is designed to be flexible and practical, supporting consistent decision‑making across portfolios.
The blog highlights:
- The five key steps of the framework
- Why physical climate risk is rising up the agenda
- How risks should be considered over different time horizons
- How physical risk links to the transition to net zero