Physical risk framework: understanding the impact of climate change on real estate lending and investment portfolios

This report shows how investors and lenders can make use of well-established insurance models, tools and metrics to improve their management of some of the physical risks of climate change.

Natural catastrophe models have long been used by the insurance industry to assess and price extreme weather event risk, and hence help them and their clients manage these risks. This report shows how outputs from climate models can be used in combination with natural catastrophe models to assess some of the physical risks of climate change in different scenarios.