From Hazard to Decision
A structured climate risk and vulnerability assessment framework for buildings
Climate change is no longer a distant concern—it is a pressing reality. With increasing frequency, intensity, and spatial variability of physical climate hazards, buildings are facing more complex and asset-specific risks than ever before. At the same time, regulatory frameworks and market stakeholders, such as the EU Taxonomy, the Corporate Sustainability Reporting Directive (CSRD), and major Green Building certifications like DGNB, BREEAM, and LEED, are demanding consistent, comparable, and auditable assessments of climate-related risks.
Why a standardized framework is essential
To address these challenges, a structured and standardized framework for climate risk and vulnerability assessment is essential:
The rating categories are based on climate projections in accordance with the standards of the Intergovernmental Panel on Climate Change (IPCC) and comprehensive risk catalogs. This ensures that buildings remain resilient, retain their value, and are prepared for the future.
Vulnerability analysis: a key to resilience
A thorough vulnerability analysis, tailored to the specific building and its context, is a cornerstone of this approach. It not only enhances the quality, durability, and longevity of assets but also aligns with the evolving requirements of Green Building certifications. These considerations are becoming increasingly relevant in risk evaluations, project financing, and compliance with local laws and regulations.
Climate risks in valuation frameworks
Across Europe, valuation frameworks are transitioning to incorporate climate risk factors. This shift is already reflected in European valuation standards and RICS valuation guidelines, with further developments expected to include both climate risk and CO2 transition factors. For investors, private companies, financing institutions, and insurance providers, the focus on climate risks and their impact on asset valuation is growing rapidly.
“Climate risks are no longer merely a technical issue. Anyone who talks only about cooling or flood protection today is missing the point. Climate change is increasingly determining the economic future of real estate—because valuation processes will clearly penalize buildings that fail to adapt to changing conditions in a timely manner.”
Actively managing climate risks: how we make your properties resilient and future-proof
We recommend a proactive assessment of climate risks for your properties. By systematically analyzing climate-related risks and implementing long-term management plans, you can reduce potential financial losses, improve the performance of your buildings, and safeguard the future value of your investments.
Together, we are creating a future in which buildings are not only sustainable but also resilient and future-proof.