Real estate investors are increasingly measuring climate and extreme weather risks as major weather events become more frequent, according to new research from JLL. And that's particularly true in the wake of the UN's Intergovernmental Panel on Climate Change's recent dire warnings about the nature of the climate crisis.
Insurance brokerage Aon reports that extreme weather cost economies more than $3 trillion in the decade spanning 2010 and 2020, and in the US, climate events causing more than $1 billion in damage have quadrupled over the last 40 years.
Around 78% of investors surveyed in JLL's Decarbonizing the Built Environment research identified climate risk as a financial risk, and the firm says real estate investors and developers are increasingly considering climate risk factors when deciding where to buy or build, citing Urban Land Institute data.
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