Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Troubles in the US regional banking sector, which serves as a primary lender for CRE, exacerbated funding issues across various segments of the CRE market.
• Declines in occupancy and rental income, and reduced credit availability persistently exert pressure on the CRE market throughout 2023.
• Persistent inflation pressures prompted the Federal Reserve to continue raising interest rates, signaling a departure from years of ultra-accommodative policy and a transition toward a much more restrictive interest rate regime. This shift made refinancing existing CRE loans more expensive and diminished overall CRE property values across all asset types, including multifamily, self-storage, and single-family rental.

Mitigation Strategies

• We believe our ability to leverage information from being both an owner-operator and lender to commercial real estate investments allows us to find relative value throughout the capital stack with the goal of delivering higher than average risk-adjusted returns.
• We will continue to seek to take advantage of market dislocations and be tactical in our investment decisions by shifting the portfolio’s asset-mix based upon where we believe we are in the real estate cycle.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Technology

Climate Goals & Targets

Environmental Challenges

• Higher interest rates
• Uncertainty surrounding the 2024 US presidential election and potential impacts to the Inflation Reduction Act
• Widespread project delays
• Investor aversion to high volatility equities
• Broad weakness across traditional clean energy subsectors such as Solar, EVs & Autos, Batteries & Energy Storage, and Biofuels & Natural Gas

Mitigation Strategies

• Active management decisions
• Higher diversification across subsectors

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change

Climate Goals & Targets

Environmental Challenges

• Climate Tech Companies Risk: Volatility, commodity price fluctuations, interest rate changes, regulatory changes, construction slowdowns, weather conditions, natural disasters, dependence on government policies.
• Credit Risk
• Currency Risk
• Derivatives Risk
• Diversification Risk
• Focused Investment Risk
• Foreign and Emerging Markets Risk
• Growth Investing Risk
• Hedging Risk
• Leverage Risk
• Short Sales Risk
• Small-Cap Company Risk
• Value Investing Risk

Mitigation Strategies

• Use of shorts to reduce volatility and downside protection

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• extreme weather or other natural disasters

Transition Risks

• changes in governmental or environmental regulation