Real estate valuation comes to terms with climate change

The moves to decarbonise real estate pose challenges for investors and asset managers and while quantifying CO2 emissions is one, integrating the process with risk management and valuing buildings is another, PwC senior manager Dr Anne Michaels explained.

Climate scenario analysis is one approach to analysing the data, she told Real Asset Insight’s Richard Betts. This entails looking at the effects of particular climate temperature changes on whole economies and different sectors.

She said the approach is being taken on board, even though the valuation process can be highly regulated. Tools are emerging that look at this risks on a portfolio-wide scale, she said.

Click on the video above to watch the full interview or listen to the podcast below.