While the narrative for sustainable, green buildings has become more or less mainstream now, the climate risks that building portfolios are subjected to is not yet a common conversation topic.
Link to recommended article: https://www.mckinsey.com/industries/real-estate/our-insights/climate-risk-and-the-opportunity-for-real-estate
The article here provides a great primer for understanding the key issues and potential way forward.
Beyond understanding the portfolio's risk profile and starting to develop a longer term de-risking strategy, the really interesting angle is the discussion on how to "Create new sources of value and revenue streams for investors, tenants, and communities".
Local energy generation and storage.
Green buildings to attract more tenants.
Green-building materials.
Extra services on-site.
Services for reducing and tracking emissions.
Differentiated capital attraction.
These are the opportunities that owners of buildings and building portfolios should definitely NOT miss. In real estate, we can most certainly drive sustainable outcomes and climate resilience while leveraging new value-creation possibilities and new revenue streams.