In their latest article McKinsey & CO. outlines the three main challenges and opportunities for the real estate sector associated with climate change.
Firstly, they suggest and we cannot agree more, real estate owners and asset managers should take account of the risk and incorporate climate change risks into asset and portfolio valuations.
Secondly, buildings must be decarbonized - no more fossil fuel based heating, significant energy efficiency improvements, renewable energy for electricity and sustainable construction - just to mention the most important areas.
Thirdly, responding to climate change provides also opportunities for new business services, additional revenue streams and improve asset values. Starting with green building certification, through green facility and property management services, to creating specific funds for net-zero buildings - the opportunities are abundant.