AMSTERDAM 25 July 2019

a changing natural and regulatory environment

On one of Amsterdam’s hottest days on record, Net Impact Amsterdam organised a Roundtable Symposium in partnership with EY and the EU’s Carbon Risk Real Estate Monitor (CRREM) project. The discussion centered around the risks and complexities of property investing in the age of climate change. Real estate and climate risk experts demonstrated the effects of a changing natural environment on long-term property values, safety, affordability, and overall resilience – and explored mechanisms for the global real estate sector to align with the Paris Agreement’s 1.5C pathway. The topic was framed into two key risk areas: physical and transition.

PHSYICAL RISKS

Physical risks are caused by single events such as catastrophes or natural disasters, as well as by acute, long-term, and chronic changes to the natural environment, such as sea-level rise or increased average temperatures.

transition risks

Transition risks are those rooted in changes to legislation or other pressures to decarbonise the sector. These source from a combination of a building’s energy demand, or consumption, and energy mix, or sources.

identify, disclose, and manage

Observing a number of climate-related disclosure initiatives entering the market in recent years, it’s clear that leaders within the financial sector are beginning to agree that climate change poses material risks. These climate-fueled risks are often still difficult to effectively take into account in standard risk modeling, so the financial industry is still unsure of how to best address and manage these. 

Frameworks like the Task Force on Climate-Related Disclosure, a project chaired by Michael Bloomberg and initiated by the G20 Financial Stability Board, as well as more sector-specific frameworks like GRESB’s Resilience Module and the EU’s Carbon Risk Real Estate Monitor (CRREM), help investors and capital providers to structurally assess how their properties are fit to perform in a changing natural and regulatory environment. And to identify what steps should be taken to ‘future-proof’ these assets.

Speaker recordings and downloads

  • A look at the trajectory: Context of our climate crisis
    Sarah Nicholls, Senior Director of Global Sustainability at JLL and World Economic Forum Young Global Leader
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  • Physical Risks: How are investors effectively positioning their portfolios for the unknown and transparently disclosing this?
    Leonie Chatain, Four Twenty Seven; Maurits Heldring, EY; Lucy Matchett, Hillbreak; Jos Hesselink, Cushman & Wakefield; Moderated by Luc van de Boom, Head of Sustainable Built Environments at Net Impact Amsterdam
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  • Durability Risk: Assessing the physical impact of long-term climate change
    Job Hogewoning, EY
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  • Introduction to the Carbon Risk Real Estate Monitor (CRREM)
    Rik Recourt, Associate at GRESB and Consortium Member of CRREM
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  • DGBC’s Delta Net Zero Plan
    Martin Mooij, Head of Certifications at the Dutch Green Building Council
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  • Transition Response: How should real estate investors prepare for future energetic retrofit requirements?
    Stephan de Bie, Vesteda; Rik Recourt, GRESB/CRREM; Martin Mooij, Dutch Green Building Council; Moderated by Andrea Palmer, President of Net Impact Amsterdam and Product Specialist at Triodos Investment Management
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