Bangkok Post: Asia-Pacific real estate assets at high risk from climate change

Read the full article here: https://www.bangkokpost.com/property/2797425/asia-pacific-real-estate-assets-at-high-risk-from-climate-change-consultancy-says. View our policies at http://goo.gl/9HgTd

REITs, with an estimated global market capitalisation of about US$3 trillion, are considered safe havens for long-term investors but damage from climate risks, such as floods and forest fires, could hurt valuations and boost insurance premiums, climate risk consultancy XDI said.

"What we are seeing is that the physical risks to build assets increase over time under climate change and are particularly more pronounced in scenarios where global warming is allowed to accelerate," said lead author Philip Tapsall.

ADVERTISEMENT

Individual companies and communities that stood to be affected need to do more to adapt to the risks, he added.

"We still have time to act, so what we are really trying to do is signal the existence of this risk."