Real Estate Climate Solutions

We support real estate investors to make climateinformed investment decisions, integrate risk analysis
and build more sustainable portfolios.

With the built environment contributing almost 40% of global carbon emissions* and physical risk increasingly impacting property values in certain markets, realestate investors arguably have an increased imperative to reduce risk and significant greener opportunities to unlock. So real estate investors have an increased
imperative to reduce climate risk, and potential significant, greener opportunities to unlock if they do.
MSCI are the first in the industry to integrate performance and climate risk across real estate portfolio analysis.

Accelerating climate integration across the investment process,through one single analytics platform

Model future risk for your portfolio

MSCI Real Estate offers acomprehensive suite of climate
solutions to help real estate
investors integrate climate

3

OBJECTIVES &APPROACHREPORTING

1

metrics, understand performance
drivers, meet their TCFD andother reporting requirements,

INVESTMENTPOLICY & PEER
GROUP
COMPARISONSTEWARDSHIP&ENGAGEMENT

measure and manage portfolio
and prospective asset exposure
to climate risk, and identify andset strategic goals.

climate across the investment process.

* World Green Building Council (WorldGBC)

Systemic tools
for disclosure

Automated, streamlined
report creation

MSCI Real Estate Climate Value-at-Risk (VaR) provides forward-looking andreturn-based valuation assessments to measure climate-related risks for real

RISK
MANAGEMENTPORTFOLIOCONSTRUCTION

estate assets in an investment portfolio.
By calculating both transition risk from changing legislation due to climate

All available through one platform– providing a common language for

Scenario analysis on climaterisks and opportunities

action and physical risk from extreme weather impacts, Climate VaR offers a2framework that enables you to:•Understand acute (event-driven) and chronic (longer-term in nature) risks•

Measure both forward-looking transition and physical risk•

Compare Climate VaR across asset classes•

Understand the impact of these risks in the context of your total portfolio

Regulation and reporting

Keep pace with change, with our climate insights

We offer a comprehensive suite of tools to help real

Our research solutions leverage our unique dataset

estate investors meet their Task Force on Climate-and analytical capabilities to provide actionable

Related Financial Disclosures (TCFD) reporting

insights for climate risk and performance.

requirements, measure and manage portfolio

Read our climate research here or contact us to learn

exposure to climate risk, identifying and set
strategic goals.
Real Estate Climate VaR addresses
both Physical and Transition risks

more about our climate solutions.

Transition Risks

Opportunities

Resource Efficiency

Policy and Legal• Physical risk: Physical risk:both acute (fooding, cyclones)
and chronic risks (extremetemperatures) are studiedTechnology• Transition risk: the Policy risk isassessed (via a carbon price)

AcuteEnergy Source

MarketRisks

Reputation

Physical Risks

Opportunities

Markets

Strategic Planning
Risk Management

Chronic

Products/Services

Resillience

Financial Impact

Revenues
Expenditures

IncomeStatement

Cash Flow
Statement

Balance
Sheet

Asset & Liabilities
Capital & Financing

Real Estate Climate VaR quantifies
the financial cost of climate change
on RE portfolios• Costs are expressed in USD andas a % of current Capital Value ofeach asset• Forward-looking analysis:
future costs are assessed anddiscounted back to present• Scenario-based: severaltargets are evaluated

About MSCI ESG Research products and services
MSCI ESG Research products and services are provided by MSCI ESG Research LLC, and are designed to provide in-depth research, ratings and analysis of environmental, social andgovernance-related business practices to companies worldwide. ESG ratings, data and analysis from MSCI ESG Research LLC. are also used in the construction of the MSCI ESG
Indexes. MSCI ESG Research LLC. is a Registered Investment Adviser under the Investment Advisers Act of 1940 and a subsidiary of MSCI Inc.

About MSCIMSCI is a leading provider of critical decision support tools
and services for the global investment community. With
over 50 years of expertise in research, data and technology,
we power better investment decisions by enabling clientsto understand and analyze key drivers of risk and returnand confidently build more effective portfolios. We create
industry-leading research-enhanced solutions that clientsuse to gain insight into and improve transparency acrossthe investment process.
To learn more, please visit www.msci.com.

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