Climate change is having a material impact on real estate holdings, according to property investors. In a survey of 102 organisations with $3.3 trillion of global assets, 46 percent said they have seen extreme weather affect their portfolios. The survey, conducted by sustainability services company Evora Global, revealed some are experiencing a fall in property values, income and occupancy rates, as well as insurance costs, as a result.
“Last summer we had extreme heat across Europe. Floods and storms are becoming very common in many parts of the world. To suggest this isn’t going to harm investments is folly,” commented Sonny Masero, chief strategy officer at Evora Global. He added that, when assessing value, investors need to consider future changes that could undermine historical market comparable data.
The report also showed only 11 percent of respondents are confident in the quality of environmental, social and governance data being supplied in the market. Evora’s reports can be found here.