The report points to the emergence of strategies and tactics that investors are using to build climate risks into their investment processes, including the following:
– Mapping physical risk for current portfolios and potential acquisitions;
– Incorporating climate risk into due diligence and other investment decision-making processes;
– Incorporating additional physical adaptation and mitigation measures for assets at risk; and
– Mitigating risk through portfolio diversification and investing in mitigation measures for specific assets.
Whether or not their assets have already been directly affected by the impacts of climate change, “investors see climate considerations as a necessary layer of fiduciary responsibility to their stakeholders, as well as an opportunity to identify markets and assets that will benefit from a changing climate,” notes the report.
Since its release, Climate Risk and Real Estate Investment Decision-making has been presented at numerous Institute meetings and other industry events, including the ULI Europe Conference, ULI Asia Pacific Convivium, China Real Estate Chamber of Commerce, ULI Midwinter Meeting, Royal Institution of Chartered Surveyors Spring Conference, and ULI district council programs.
Subsequent to the report, the Urban Resilience Program produced Scorched: Extreme Heat and Real Estate, which explores how extreme heat is emerging as a growing risk factor and planning consideration across the United States, and how the real estate industry is responding with design approaches, technologies, and new policies to mitigate the impacts and help protect human health.
Other offerings from the Center for Sustainability’s Urban Resilience program include community assistance provided through ULI’s Advisory Services program and technical assistance panels led with district councils. Resilience-oriented advisory panels bring together ULI members to help communities address complex urban challenges with solutions that decrease community vulnerability to climate-related risks and capitalize on opportunities for improved environmental performance, economic development, and quality of life. Over the past several years, the center has participated in resilience panels throughout the United States and its territories, including Miami Beach; Miami; Seattle; Portland, Maine; El Paso, Texas; Norfolk, Virginia; Toa Baja, Puerto Rico; Brooklyn, New York; and St, Petersburg, Florida, with each one informing future advisory work.
Through the Urban Resilience program, the Center for Sustainability also launched Developing Urban Resilience, a website featuring member-nominated real estate developments that showcase best practices in resilient design, including the District Wharf in Washington, D.C.; Buffalo Bayou Park in Houston; and 181 Fremont in San Francisco.
Other ongoing work includes the annual Resilient Cities Summit, which the Urban Resilience program cohosts with the National League of Cities and the U.S. Green Building Council. The event brings together mayors, senior city officials, and resilience, sustainability, land use, and finance experts to discuss resilience challenges and share best practices in preparedness, adaptation, and climate mitigation. The 2018 summit focused on how public/private partnerships can help enhance city resilience, informing a 2019 summit that explored enhancing city resilience through the innovative use of data and metrics.
The Urban Resilience Program is generously supported by the ULI Foundation, New York Community Trust, the Kresge Foundation, and The JPB Foundation.
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