Commercial Property: What you need to know about managing the impact of climate change extreme weather.

Climate risk and resilience are important considerations for owners and managers of commercial property. But what is the path from risk to resilience?

Read more below on the steps we recommend at XDI.

The journey from risk to resilience

Know where to invest relative to physical climate risk

Some locations carry higher risk from climate change extreme weather events. Leveraging climate and location analytics can help with investment decisions.

XDI’s 2024 XDI Gross Domestic Climate Risk Report provides an in-depth analysis of climate risk at national and sub-sovereign levels, globally.

Limit direct damage from climate change extreme weather

Identify risk of damage from extreme weather within a portfolio and explore building adaptations to avoid expensive repairs.

Avoid unnecessarily lost business days

Acute weather disrupts business operations that support rental income, with downtime required to repair assets.

Respond accurately to regulatory requirements

An increasing number of jurisdictions are introducing rules and taxonomies governing climate risk disclosures, backed by demand from institutional investors.

Consider opportunities to reduce insurance costs

Increasing insurance costs can put substantial pressure on net operating income. This underlies the business case for investment in climate adaptation measures.

Open new business opportunities

Sustainability leadership, including portfolio climate resilience, can unlock opportunities by improving tenant retention and accessing green investment and finance.

Have you read our latest report?

New report highlights APAC REIT exposure to physical climate risk.

XDI analyses 2,134 assets held around the world by the largest REITs in Japan, Australia, Singapore and Hong Kong.

?? Read it here: 2024 APAC REIT physical climate risk report