How to Choose, Use, and Better Understand Climate-Risk Analytics

Report Summary: In 2021, the U.S. National Oceanic and Atmospheric Administration (NOAA) identified 18 separate billion-dollar disasters in the United States alone. In recognition of the growing impact to asset portfolios posed by such events, countries worldwide are adopting new regulations on climate risk disclosure.  At the same time, institutional real estate managers in markets across the globe also face a number of challenges related to physical-risk associated with climate change, including a lack of clear industry norms or guidance related to:

• Selecting physical-risk climate science data providers that are aligned to business needs
• Evaluating the products and the complex science underpinning them
• Integrating this information into real estate life-cycle decisions

This collaboration between ULI and LaSalle Investment Management provides insight to the land use industry on how to interpret climate-risk analytics, identify risks effectively, and incorporate them into decision-making throughout the investment life cycle. The report is divided into six sections excluding the Executive Summary:

1. Motivation and Key Takeaways
2. What Is Physical Climate-Risk?
3. How Do Physical-Risk Analytics Firms Measure Climate Risk and What Do They Do?
4. How Are Institutional Real Estate Managers Assessing Physical-Risk Data?
5. How Can the Real Estate Community and Climate-Risk Data Providers Improve Decision-Making Using Physical Climate-Risk?
6. Next Steps

Watch the How to Choose, Use, and Better Understand Climate-Risk Analytics Webinar.

Read ULI's related report, Physical Climate Risks and Underwriting Practices in Assets and Portfolios.