Sea Level Rise Gets Real (Estate) National Adaptation Forum April 2019 BUILDING PERFORMANCE. UNLOCKING VALUE.
About RE Tech Advisors § Advisors supporting the fiduciary and investment objectives of commercial real estate leaders and market stakeholders. § Experts unlocking value at the intersection of sustainability, technology, and buildings. § Problem solvers , designing and implementing award-winning environmental, social, and governance (ESG) programs. RE TECH ADVISORS / RETECHADVISORS.COM 2
Institutional real estate investment Re Real estate investment “funds” ~ Real Estate Fund/REITs Mutual Fund (Stocks, Bonds) (Buildings) RE TECH ADVISORS / RETECHADVISORS.COM 3
Introduction § Drivers of increased interest and discussion on climate risk in real estate: Recent events Resilience Module RE TECH ADVISORS / RETECHADVISORS.COM 4
About TCFD § Types and examples climate risks to be disclosed: Transition Risks Physical/Operational Risks Policy and Technology Market Reputation Chronic Acute Legal Risks Risk Risk Risk Risk Risk Examples: Examples: Examples: Examples: Examples: Examples: § Community and § Hurricanes, cyclones § Sea level rise § Carbon tax § Building or system § Supply/demand public relations § Flooding § Drought § Renewable energy obsolescence shifts § Brand mgmt. § Wildfires § Heat waves mandates § Modernization costs § Regional economic § Political influence § Tornados, windstorms § Water scarcity § Energy disclosure § “Stranded assets” disruption § Customer loyalty § Landslides, avalanches § Food security mandates § Operational efficiency § Migration shifts, new § Extreme snowfall § Land use policies § Cost competitiveness demographic § Litigation § “Creative destruction” patterns Source: Task Force for Climate-Related Financial Disclosures RE TECH ADVISORS / RETECHADVISORS.COM 5
Initial real estate research “Successful real estate projects depend “...insurance as the main protection for “Based on our analysis, National Real on the long term stability and asset value is not an effective solution Estate Advisors does not invest in prosperity of cities.” to mitigate the risk of devaluation…” South Florida…” RE TECH ADVISORS / RETECHADVISORS.COM 6
Climate risk exposure vs. market allocation 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% X C L N D A I A O A V A Z A C A X L C O X J A A A W N W W T S A I N G T F M N T W M C C C P T M M P , - s , - , - , , , C , , , , r , , - d e , , g , - N k n - J d , y t y l l n e , , h N , e D N h R R t l l n n c e m n e l t i e n i t M l o t a H g a M g n l o A o O a l w i k a o d o e e , d v i , a d a i u e R k L e n w s t m w r - k s l r s , , , h i o e s w l s r n e A I a n o r r n t H o r o a d a g - r a e e v a t C p r o r V e o o a o R e w n o R B n C o l k E g n a F t B n e T g G - t c r - u i a - u o h - g b e m C - s e l e S s a - C - o n o - L d a o a s N h D S t t C g u - l R R l a - r G g s P - i i - a - n r m l c a v s g b - i r a n e m - o - , - s i e H a r e a d s r m n F w d e i h r b o o l p u l - e l i n a a r r C a o i n r l y r M s u t - B e h S l b d a o A l e d s u a - a l r o r s l B u B n l c - - y e o g e g A d H u y r t x e t D - a n d C n - A v w n r e - e o - i l n D l x o n f u o r l n r t - i u l o d i u r e e t e v e e o L n C e a u p a o N v t l W r P r - a A - o S M P c a o S s n e e C n - h - . e - l p - . e e e e t a t m e n k - t a S t P s - S g l D a a t l S h o k V e o n n - i l d O N c t i - T a g t l o l v s r u a - i g - - p a i r n a s e n o l l d b n B t m B o A h d t o g A n - t m i i p l t C y v e s r a a a a a o A s c t a T y l n e t u i D a C L - o h u r n F n o C - o H o e n P C l i t M l g i y v n r h i e h s m s a a N o W g t n o M % of total value at risk % of total market allocation by asset value RE TECH ADVISORS / RETECHADVISORS.COM 7
Thank you! Jack Davis BUILDING PERFORMANCE. Director of Program Development UNLOCKING jdavis@retechadvisors.com VALUE.
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