Physical risk framework: Understanding the impacts of climate change on real estate lending and investment portfolios
Creator: Cambridge Institute for Sustainability Leadership (CISL)
Type of methodology: Methodological recommendations
Approach type: CVRA (Climate Vulnerability and Risk Assessment)
Short description: The report suggests that natural catastrophe models can be used to understand changing physical risks and the impacts on investors/lenders portfolios
URL to access information about the tool: https://www.cisl.cam.ac.uk/system/files/documents/cisl-climatewise-physical-ris…
Hazards covered: Others
Audiences: Architects and engineers
Assessment level: Asset-level
Evaluation system:
N/A
Strengths:
Describes steps to applying catastrophe modelling to understand physical risks and impacts on investors/lenders portfolios
Limits:
- Does not describe steps of a specific methodology
- Involves modelling
The report suggests that natural catastrophe models can be used to understand changing physical risks and the impacts on investors/lenders portfolios. This can be done in 4 main steps:
- Data collection
- Selection of natural catastrophe model
- Selection of climate change scenarios
- Execution of natural catastrophe model
