& others
UN (Environment Programme Finance Initiative)
2022
🌍 Context and Publisher The report titled "Managing Transition Risk in Real Estate: Aligning to the Paris Climate Acc" was created by the UN Environment Programme Finance Initiative (UNEP FI) on April 21, 2022. UNEP FI is a partnership between the United Nations Environment Programme and the financial sector, aimed at promoting sustainable finance and investment practices. The report addresses the pressing need for the real estate sector to adapt to climate change and align with net-zero goals, a critical aspect of the Paris Agreement. 🏢 Transition Risks in Real Estate As economies across Europe and beyond move towards decarbonization, the real estate sector faces significant transition risks. These risks stem from regulatory changes, shifts in market demand, and the need for substantial investment in sustainable practices. Financial institutions, including banks and real estate investors, must adopt proactive strategies to mitigate these risks and ensure their portfolios remain resilient against climate-related challenges. 📊 Assessment and Recommendations The report assesses the current state of real estate assets and identifies the challenges that impede alignment with net-zero targets. It highlights the climate challenges facing the sector and provides
UN (Environment Programme Finance Initiative)
Real estate faces significant transition risks as economies decarbonize. To mitigate the impact of potential transition risks, financial institutions active in this sector must be proactive.
This report assesses the state of real estate assets and the challenges the sector faces to align to net zero. It provides insights on the climate challenges confronting the real estate sector, and recommendations for addressing them.
To develop this resource, a dozen real estate investors and banks piloted the Carbon Risk Real Estate Monitor (CRREM) tool as part of UNEP FI’s Task Force on Climate-related Financial Disclosures (TCFD) programme. The report authors document the experience of participating financial institutions and illustrate how the CRREM tool can be deployed to effectively measure and manage real estate transition risks. Their findings reveal both the opportunities and the risks for financial institutions investing in real estate assets.
This project builds on work done by UNEP FI’s Property Working Group, now convened by the Principles for Responsible Investment (PRI). Find out more here.