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 “forward-looking and return-based valuation assessment to measure climate-related risks” for real estate assets in an investment portfolio, MSCI said.

Remy Briand, head of ESG at MSCI, said: “MSCI has been a leader in helping investors incorporate climate change considerations in their investment process for over 20 years.

“Over this time, we have witnessed increased urgency from investors to quantify their climate risk exposures when constructing and analyzing portfolios.”

Jay McNamara, head of real estate at MSCI, said: “Private real estate, as a long-term asset class, is particularly vulnerable to climate-related events.

“Our research has shown that the potential impact for real estate investors from climate events is far-reaching and spans assets and geographies.

“Investors could face increased operational costs including property repairs, higher insurance costs, property devaluation and even the complete loss of property.”

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