Our client, a commercial real estate firm, works across a diverse portfolio of asset types in the Asia-Pacific region. With increasing investor and regulatory pressures, the client needed a method to access and convey physical climate risks to their stakeholders and investors to support due diligence in real estate transactions where time for delivery is of the essence conveniently and robustly. We were tasked with providing a rapid turnaround for specific asset classes with a limited but potentially impactful set of chronic and acute climate variables that supported a templated approach to reporting.

We have processed hundreds of terabytes of the latest CMIP6 raw climate data into a rapidly accessible in-house database that supports report generation for multiple asset types. This means that any global asset can have a high-level risk profile report generated as part of a due diligence exercise.

Upon receiving address information or latitude and longitude information for one or more assets from the client, we mapped out the asset group. We identified any concerns over the assets’ specific location. Because every site is different, each assessment requires considering a broad range of climate and environmental variables covering average and extreme conditions. This includes, for example, earthquake and tsunami risk as well as sea levels and extreme still high-water levels, extreme heat, rainfall, wind, and wildfire, as well as flood risk and proximity to flood areas.

Physical risk reports were generated for each asset with climate variables and risk scores by peril, along with complete data and methodological reports to support the generated outputs.

Our team was available to support the client to confirm the interpretation of some results, especially for assets located in challenging environments or contradictory information garnered from other sources.