The Urban Land Institute (ULI) released its new report entitled “Climate Risk and Real Estate Investment Decision-Making” this week at their Spring conference. This report is a follow on to their 2018 report entitled “Ten Principles for Building Resilience”. This year’s report addresses the state of current practice for assessing and mitigating climate risks in real estate as well as highlighting best practices across the real estate industry. was developed using a proactive approach to address climate risks.
Per the report’s conclusions, “a failure to address and mitigate climate risks may result in increased exposure to loss as a result of assets suffering from reduced liquidity and lower income, which will negatively affect investment returns. At the same time, investors who arm themselves with more accurate data on the impact of climate risks could help differentiate themselves and benefit from investing in locations at the forefront of climate mitigation.”
Continued focus and monitoring of results from an Environmental, Social, Governance (ESG) and social impact investing point of view, continue to be the touchstones as 2019 marches on.
-Brad A. Molotsky, Duane Morris LLP