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Project

Material Assets Valuation: Estimating Risks and Impacts of Climate Change (MAVERIC)

This project will provide financial actors with a climate risk valuation method for material assets (buildings, land, and land installations). The aim is to better understand climate related risks, predict revenue and capital appreciation but also to adhere to disclosure regulations.

Active project

2022–2025

The questions we aim to answer are:

  1. How will climate change impact material assets?
  2. What physical and transition climate risks should different actors incorporate on their risk register?
  3. How can valuation methods incorporate cascading and simultaneous climate risks?
  4. What is the potential value of the portfolios of different actors were climate risk to be incorporated in the valuation method?

Climate risks can be either physical or transitional and these risks impact on banks, and financial institutions, either directly through the valuation of assets, liabilities and cost of capital, lower corporate profitability, or indirectly, through macro-financial changes. Material assets are valuable. Close to one in five large cap companies listed on the NASDAQ OMS Stockholm market operate in real estate.

This project engages 2 research organisations (SEI and the Sustainable Finance Lab at KTH) and 14 consortium partners (financial institutions; asset owners; insurance companies; and government agencies). The main expected output is an evidence-based climate risk evaluation method for improved decisions and assessment of the value of material assets, incorporating actors’ heterogeneity but also cascading climate related impacts.

Partners

  • Swedbank
  • Belfius Bank
  • Allianz Global Insurance
  • AFA Fastigheter
  • Alecta Fastigheter
  • Castellum
  • Skandia Fastigheter
  • Vasakronan
  • CBRE
  • JLL
  • SveFA
  • The Swedish Meteorological and Hydrological Institute (SMHI)
  • The Viable Cities Strategic Innovation Programme
  • TU Delft Real Estate Development and Building in Low Urban Environments initiative
  • KTH

Publications

Related projects

SEI team

Fedra Vanhuyse
Fedra Vanhuyse

Head of Division: Societies, Climate and Policy Support

SEI Headquarters

Tommaso Piseddu
Tommaso Piseddu

Research Associate

SEI Headquarters

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