BlueOnion reposted this
I invite you to read this insightful and thorough article by my colleague Allee Zhang on measuring and managing physical risks of climate change in real estate and infrastructural assets (outline can be found on page 91 of the 2023 UBS Asset Management Stewardship report). She provided details of a methodological top-down sector based approach, focusing on the likelihood and magnitude of hazards, exposure and vulnerability of the asset. Starting with the current state, conservative and stress scenarios are generated with near and medium term views that determine hazard exposure. They are then rated based on the likelihood of occurrence and the magnitude of the damage, classified by direct and indirect hazards. An overall risk rating of the asset is derived from these hazards, combined with the gross asset value exposures, providing a focal point of the vulnerability analysis that covers exposure of the identified climate hazard, sensitivity of the assets based on condition and capacity, and finally adaptive capacity of the assets. Supply chains and resources are taken into consideration where relevant. This is followed by deep dive analysis on adaptation and mitigation efforts (she provided some concrete examples) It is worth noting that especially in real estate, asset managers coordinate and drive the data collection process for each asset, engaging directly with property managers and managing agents on specific building level information. I hope you enjoy reading it. https://lnkd.in/egdMcdvR
ESG, Enviro, Social Human Rights due diligence; esp SupplyChains, Sustainability 20+yrs experience, 11 in China. Guide, Train, Assess for Impact, Change, SDGs. Fet'd UN PRI, Cambridge Ins Sustainability Leadership, etc
5moSarah Cary PhD MRTPI