All buildings are exposed to some level of physical climate risk, and these impacts will intensify with our changing climate. That’s why Measurabl has integrated global physical climate risk data into our ESG platform to help our customers understand their risks.
The first step to improve your portfolio’s resilience is to gather data about assets so you can understand their level of exposure. Until now, the commercial real estate sector has largely relied upon property insurance policies to determine their portfolio’s level of risk. But insurance companies often rely on historical data about an area to assess risk, rather than examining climate trends that can identify regions vulnerable to future catastrophes.
Through an initial integration with Four Twenty Seven, a leading publisher and provider of market intelligence on the economic risk of climate change, Measurabl customers can now understand their physical climate risks and opportunities across their real estate portfolio via seven different climate risk scores.
Asset-Level Risk Management
For the first time, CRE owners and investors have instant access to physical climate risk information about their portfolios in the same place as their ESG performance data. By entering the locations of their buildings, customers can instantly view their level of exposure to wildfires, earthquakes, floods, heat stress, water stress, hurricanes and typhoons, and rising sea levels. With this knowledge, our customers are empowered to mitigate effects of their portfolio’s physical environments and identify opportunities.
PCRX pulls in data that identifies a building’s physical climate risk and assigns a percentile score compared with climate risk data from nearly all areas of the Earth where commerce is done. For example, a building with a Heat Stress score of 85 means that it is in the 85th percentile globally for its exposure to heat stress. Buildings with “red flag” scores are among the top 5% most exposed in one or more climate hazard categories compared with millions of buildings worldwide.
Now That I Know My Risk, What’s Next?
Knowledge is power: When real estate companies take charge of their own asset-level data, they can better diversify their investments—for example, building in low-risk areas to balance out high-risk investments. They can also assign value to projects that make their buildings more resilient. In addition to retrofit projects, resilience can be incorporated in building design and construction—and not just in areas currently deemed high-risk.
No matter what actions you decide to take, having a clear, seamless way to collect, analyze, and report resilience data will go a long way in ensuring access to capital and preparing your business to thrive in an increasingly unstable climate.
Measurabl customers can contact their dedicated customer service managers to learn more about this feature.
Schedule a demo with our team to see PCRX and other Measurabl features in action.