Resilient Real Assets: Update from the 2019 Resilience Module

We’re excited to release our new report, Resilient Real Assets. The report contains insights about the state of the industry and practice from last year’s Resilience Module, leveraging a unique global dataset to provide a snapshot of the way real asset companies and funds are managing climate risk and resilience.

The findings show that some firms have developed and executed relatively comprehensive programs, however, the majority of firms have partial or fragmented programs, often missing key elements, such as performance targets or operational metrics.

The report covers the results from reporting real estate funds, infrastructure funds, and infrastructure assets, and breaks down the various ways in which funds are tackling the resilience challenge along the fronts of transition risk, physical risk, and social risk. It also analyzes the Module results across the four pillars used by the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD):

  • Governance
  • Strategy
  • Risk Management
  • Metrics & Targets

This analysis provides insight into important areas for improvement, and the report provides seven actionable recommendations for investors and real asset companies working to materially improve their management of climate risk and resilience. Additional insights from the report include how leading real asset companies demonstrate innovation through a variety of resilience-related practices, which scenarios real asset firms are using to manage climate-related risks, and information on the distribution of resilience practices among top and bottom reporters.

The results of this analysis have informed the development of the GRESB 2020 Resilience Module, which remains an optional supplement to the GRESB Real Estate and Infrastructure Assessments.