Integrating Transition Risks into Investment Decision-Making: The Preserve Tool

Webinar-Zusammenfassung: This workshop showcased the early prototype of Preserve, a tool designed to quantify the financial impacts of transition risks in discounted cash flow models, integrating decarbonisation considerations into investment decision-making.

Supporting the real estate industry in assessing transition-related financial risks has been a key focus of ULI Europe's C Change programme. Developing a standardised approach to underwriting these risks can play a critical role in strengthening the business case for decarbonisation, helping to accelerate the sector's transition efforts.

ULI Europe has partnered with Synergetic, Mott MacDonald, and CBRE to develop Preserve, an open-source Excel workbook that enables investment professionals to consistently assess transition risks. The tool also facilitates scenario testing and financial sensitivity analysis, empowering users to make more informed asset management and investment decisions.

This workshop presented the working prototype of Preserve, explained the tool's underlying assumptions and modelling, and shared early insights from the pilot programme. It also invited feedback on the tool's features, outputs, scenario design, and assumptions to support its ongoing refinement.