Climate Risk
Anticipating physical and transition climate risks
Climate change is reshaping the risk profile of real estate. Rising temperatures, flooding, and extreme weather events pose physical risks to assets, while decarbonisation policies, energy efficiency regulations, and shifting tenant demands create significant transition risks. Investors and regulators are increasingly expecting robust climate risk assessments aligned with frameworks such as CRREM, CSRD, EU Taxonomy and TCFD.
At Cooltree, we help you understand, quantify, and mitigate climate risks across your portfolio. Our approach ensures your assets are resilient, your strategy is aligned with Net Zero (carbon) goals, and your disclosures meet regulatory and investor expectations.
Our approach:
Physical risk assessment: Analysing exposure to flooding, heat stress, storms, and other climate-related hazards at asset and portfolio level.
Transition risk analysis: Evaluating regulatory, technological, and market-driven risks, including CRREM and DGBC-aligned pathways to identify potential misaligned assets.
Climate modelling: Applying location and market based climate scenarios (e.g. 1.5°C, 2°C) to understand long-term resilience and stress-test your portfolio against future pathways.
Integration into ESG strategy: Embedding climate risk insights into broader ESG roadmaps, Net Zero strategies, and reporting frameworks such as TCFD, CSRD, and EU Taxonomy.
Climate reporting and clear communication: Delivering outputs that are transparent, investor-ready, and tailored for inclusion in annual reports and stakeholder disclosures.
Why it matters:
A proactive climate risk approach enables you to:
Protect asset value by identifying and addressing risks early.
Reduce exposure to stranded assets and regulatory penalties.
Strengthen investor confidence with TCFD-aligned reporting.
Build resilience and ensure long-term portfolio performance.
With Cooltree, climate risk management becomes a strategic advantage, as we turn uncertainty into resilience and future-proof your real estate investments.
