Where should you invest when the seas are rising, temperatures are rising and extreme weather events are looming?
“No place on earth is completely safe and risk-free,” said Aleksandra (Sasha) Njagulj of CBRE Global Investors in the latest installation of TRD Tips. “It doesn’t really depend on the type of building or its use…where the risks get more complex is actually the infrastructure.”
Njagulj, who oversees CBRE’s environmental, social and governance team, says investigating the risks posed by climate change is a necessary step before any investment. But mitigating these risks “is also an opportunity”.
ESG Group has invested in a number of historic properties that have seen “much, much better valuations” after upgrading to new technologies and improved sustainability.
TRD sat down with Njagulj in London to understand how she analyzes the risk that climate change presents to the world’s largest asset class. At the moment, she said, the biggest dangers include “wildfires, from Australia to California, the risk of flooding all over Europe, in the UK, the risk of typhoons in Asia”, and more.
Watch the video above to understand how to assess a property’s risk in the face of climate change.