Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Green-rated buildings offer rental and sales value uplift (up to 12.3% for BREEAM and 18% for NABERS).

Social Achievements

• Research shows that 80% of private investors view ESG as important in commercial investment decisions.
• Walkable neighbourhoods promote healthy and sociable lifestyles and build communities.

Governance Achievements

• Analysis of compliance with regulations like SECR and ESOS.

Climate Goals & Targets

Environmental Challenges

• Access to accurate ESG information and advice.
• Concerns over greenwashing.
• Lack of understanding of ESG.
• Access to green financing.
• Gap between corporate sustainability ambitions and actions in real estate.
• Stranded asset risk due to high CO2 emissions.

Mitigation Strategies

• Use of rigorous analytical techniques and proprietary datasets.
• Development of tools like the Urban Walkability Tool and CRREM Stranding Risk Tool.
• Providing ESG consultancy services to clients.
• Advocating for improved education and awareness among corporates.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: BREEAM, NABERS

Environmental Metrics

ESG Focus Areas

• Climate change
• Sustainability
• Biodiversity
• Social impact
• Governance

Environmental Achievements

• Almost two-thirds of UHNWIs are attempting to reduce their carbon footprint; a fifth are trying to measure it.
• 40% of UHNWIs are switching to electric vehicles.
• 30% of UHNWIs are reducing the carbon footprint of their business operations.
• Significant increase in insurance costs as a percentage of income receivable in the US (more than doubling from 1.0% to 2.3% over five years to September 2023).

Social Achievements

• Continued demand from UHNWIs for real estate, with around a fifth looking to purchase residential property and the same proportion looking at commercial opportunities.
• Growth in the number of UHNWIs globally, led by growth in the US and the Middle East.

Governance Achievements

• Increased focus on ESG criteria by UHNWIs when making investment decisions (around a quarter of UHNWIs screen potential investments against ESG criteria).

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Climate change impacts (altered crop yields, shifts in tourism patterns, physical harm to buildings, infrastructure disruptions)
• Rising insurance premiums and expanding uninsurable areas
• Wealth carbon footprint gap
• Slow adoption of sustainable living and green technologies in the luxury residential sector
• Lack of suitable prime housing in some emerging wealth hubs (e.g., Milan)
• Growing pains in the branded residence market (poorly conceived schemes leading to sluggish sales).

Mitigation Strategies

• Development of alternative sourcing strategies
• Demand for properties in low-risk areas and energy-efficient buildings
• Development of technology to assist property owners in preparing for, adapting to, and recovering from climate-related hazards
• Investment in nature-based solutions and carbon sequestration opportunities
• Improving energy efficiency of homes and investment properties
• ESG screening of investments
• Shifting lifestyles among UHNWIs (switching to EVs, reducing air travel and private jet use, offsetting travel)
• Governmental incentives and tax breaks for renewable energy projects
• Retrofit and refurbishment of assets with weak ESG credentials
• Investment in sustainable/prime assets.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Rising sea levels
• Heatwaves
• Droughts
• Wildfires

Transition Risks

• Regulatory changes
• Market shifts
• Increased insurance costs

Opportunities

• Demand for properties in low-risk areas and energy-efficient buildings
• Development of technology to mitigate climate risks
• Investment in nature-based solutions

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 43% of buildings surveyed conducted sustainable buildings accreditation (BEAM Plus, LEED, WELL, WiredScore, SmartScore).

Social Achievements

• Increased focus on in-house amenities supporting physical and mental well-being.

Governance Achievements

• 71% of surveyed buildings have corporate carbon-reduction targets, and 77% have transparent ESG governance reporting practices.

Climate Goals & Targets

Environmental Challenges

• High capital costs associated with implementing environmental criteria.
• Limited floor space for renewable energy equipment installation.
• Navigating a growing number of ESG-related certifications and ratings.
• Balancing ESG criteria with cost-effectiveness.

Mitigation Strategies

• Prioritizing ESG parameters based on macro statistics and rental sensitivity.
• Focusing on key investment and asset enhancement areas aligned with emerging trends.
• Developing an integrated and macro approach to prioritizing ESG parameters.

Supply Chain Management

Responsible Procurement

• Green fit-outs and green leasing.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme typhoons and floods

Transition Risks

• Regulatory changes (BEEO amendments)

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: BEAM Plus, LEED, WELL, WiredScore, SmartScore

Certifications: BEAM Plus, LEED, WELL, WiredScore, SmartScore