Index provider MSCI has launched a new offering to help real estate investors plan for climate change risk
The newly launched MSCI Real Estate Climate Value-at-Risk is expected to help investors assess and manage their exposure to climate change.
It provides a 鈥渇orward-looking and return-based valuation assessment to measure climate-related risks鈥� for real estate assets in an investment portfolio, MSCI said.
Remy Briand, head of ESG at MSCI, said: 鈥淢SCI has been a leader in helping investors incorporate climate change considerations in their investment process for over 20 years.
鈥淥ver this time, we have witnessed increased urgency from investors to quantify their climate risk exposures when constructing and analyzing portfolios.鈥�
Jay McNamara, head of real estate at MSCI, said: 鈥淧rivate real estate, as a long-term asset class, is particularly vulnerable to climate-related events.
鈥淥ur research has shown that the potential impact for real estate investors from climate events is far-reaching and spans assets and geographies.
鈥淚nvestors could face increased operational costs including property repairs, higher insurance costs, property devaluation and even the complete loss of property.鈥�
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