Report Physical Climate Risk assessment approach for international asset portfolios of real estate investors using European open data and climate services tools

Report on methods and datasets to support Physical Climate Risk assessments for real estate asset portfolios using European open data and climate services tools. The pension fund APG (the largest pension fund in the Netherlands) is involved in the project and will use the REACHOUT results to validate, test and improve their own risk assessment methods and databases. Specific services will be developed for the real estate sector and institutional investors. Especially investors operating internationally with assets spread out over different regions of the world struggle how to capture physical climate risk. In this report we describe results from the risk assessments for assets within the City Hubs. Results will be compared with the existing risk databases of real estate investor APG. An innovative component within this task is to use Artificial Intelligence techniques and crowd sourcing to develop datasets to capture local adaptive capacity and community resilience. In general, physical climate risk models (especially at supra-national level) are not well equipped to capture adaptive capacity and local community resilience. Also, local damage mechanisms at the building level are not taken into account.