Where should you invest when seas are rising, temperatures and going up, and extreme weather events are looming?
“There is no place on earth that is completely safe and no risk,” CBRE Global Investors’ Aleksandra (Sasha) Njagulj said in the latest installation of TRD Tips. “It doesn’t really depend that much on the building type or use… where the risks become more complex is actually infrastructure.”
Njagulj, who oversees CBRE’s Environmental, Social, and Governance team, says investigating the risks climate change poses is a necessary step before any investment. But mitigating these risks “is also an opportunity.”
The ESG group has invested in a number of historic properties which have seen “much, much better valuations” after retrofitting for new technologies and improved sustainability.
TRD spoke with Njagulj in London to understand how she analyzes the risk that climate change presents for the world’s largest asset class. Right now, she said, the greatest dangers include “wildfires, from Australia to California, flooding risks anywhere in Europe, U.K., risk from typhoons in Asia,” and more.
Watch the video above to understand how to assess a property’s risk to climate change.