In the News

The Future of Real Estate Investment: Smart and Climate-Resilient Buildings
June 24, 2019

Climate change has created a huge demand for sustainable and resilient design and construction. Climate-resilient design focuses on the design of buildings, landscapes, communities and regions to respond to natural disasters and the effects of climate change, such as rising sea levels, increasing heat waves and regional droughts. For real estate professionals, climate-resilient strategies ensure that capital doesn’t fail and continues to perform at a net positive rate, even during catastrophic events. Read more>

How Climate Change is Vitiating Real Estate Values
June 20, 2019

The impacts of climate change on communities alter businesses and real estate investors alike. Factors such as flooded or damaged public infrastructure—which hinders employee and customer commutes—or competition for water resources threatening business operations and urban heat reducing public health, should all be taken into consideration when pondering new investments.

Provider of market intelligence on the economic risk of climate change Four Twenty Seven, in collaboration with GeoPhy, have released a report that includes scientific- and data-based facts on the relation between climate change and real estate.
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Politics aside, climate data is a growing business
May 29, 2019

This week, the Trump administration took steps to limit climate science research within government agencies, according to a report in the New York Times. It will reduce the time frame covered by U.S. climate models, and possibly stop the inclusion of certain projections, like worst-case scenarios.

This is happening at a time when private industry is trying to increase climate intelligence. In the new series “How We Survive,” Marketplace Tech has been looking at how technology can help us adapt to and understand the risks of climate change. Reliable data models are a huge part of that effort.  Read more>

Climate Change Can Pose Big Risks to Real Estate Investments
May 28, 2019

Climate change could dramatically alter the value of real estate investments.

And that goes for real estate investment trusts, companies that own income-producing real estate, if they do not shift their investment strategies to address growing risks, industry experts say. Read more>

That Sinking Feeling: Real Estate in the Age of Climate Change
March 11, 2019

Most people think of the arctic as remote – a wasteland inhabited by polar bears (true) and penguins (untrue) – with little relevance to their daily lives.

Most people are wrong.

While the arctic may be distant for us geographically, what happens there has an enormous effect on us, no matter where we live. Read more>

Podcast – Facing Up to Climate Change
March 5, 2019

In the first part of a two-part podcast, Emilie Mazzacurati, CEO of Four Twenty Seven, discusses the challenges financial firms and state and local governments face when it comes to climate change, adaptation and resilience. And in a second part, The Bond Buyer’s Northeast Regional Editor Paul Burton chats about green bonds, climate change and resilience, and cybersecurity. Chip Barnett hosts. Read more>

Business and the Effects of Global Warming
February 21, 2019

Nestled in a forest an hour’s drive from Providence, Rhode Island, sits what some employees call “the world’s biggest facility for property destruction”. Here workers for FM Global, an engineer-cum-insurer, set fire to wall cladding, hurl projectiles at reinforced glass or test roofing designs for the gusts of wind they can take before tearing off. The experiments are designed, monitored and replicated with laboratory precision, beams Louis Gritzo, FM Global’s head of research. All simulate what wildfires, hurricanes and other natural disasters could do to the structures of its customers, which include such well-known names as Disney, Caterpillar and the Massachusetts Institute of Technology. Read more>

An Exclusive Look at the Companies Most Exposed to Climate Change Risk – and What They’re Doing About It
January 25, 2019

Since taking over the global supply chain for Merck in 2012, Craig Kennedy has handled tornadoes, droughts, and powerful storms.

Hurricane Maria, which tore through Puerto Rico in 2017, was a more onerous challenge: Merck’s cholesterol drug Atozet and its chemotherapy product Temodar are manufactured on the island. Kennedy got the factory up and running in a week, but the roads were still a wreck, so he began planning for a new supply chain out of Singapore. Read more>

Will the Next Housing Crisis be Climate-related?
November 26, 2018

Could the next housing crisis be climate-related? Quite possibly.  This summer my partner and I tried to buy a house in the Catskills, New York. It was the end of June when we ran the inspection and no drought was in effect. The report came back that the well was almost dry – something the owners (who didn’t live there full time) claimed was a shock to them. And it could have been. Several other homes in that small town had their wells run dry for the first time this summer. Read more>

REIT Investors Put More Focus on Environmental, Social and Governance Issues, According to New Reports
October 15, 2018

For what seems like an eternity, “location, location, location” has been a mantra for REIT executives and other commercial real estate professionals. Now, three more words are entering their lexicon with greater frequency—environmental, social and governance. Read more>

California’s fires are Creating Another Problem: Fleeing Insurers
August 6, 2018

Residents of U.S. towns damaged by wildfires may need to prepare for another repercussion: insurers that decide to cancel policies because of increased risks from more frequent fires.

Facing mounting losses, some property insurers are pulling back from selling policies in California and other western states where wildfire risk is elevated. In California alone, damages had mounted to at least $12 billion by early 2018, while the state’s Carr fire likely added another $1.5 billion in insured losses. Read more>

Calif. Carr Fire Claims 6 Lives
July 30, 2018

Just when it seemed like things couldn’t get any worse in California, the Carr wildfire ignited, claiming six lives so far. The fire in Northern California near the city of Redding has been burning since July 23 and is now one of the largest in the state.

Almost 90,000 acres have burned, destroying more than 500 homes and commercial buildings and damaging 135 structures. Firefighters, who are working 24- to 36-hour shifts with little rest in between, said they are making progress and are now on the offense rather than in a defensive mode. Read more>

SEC Stops Prodding Companies to Detail Climate Change Impacts
July 16, 2018

Investors are pressing for more specific information on how climate issues affect corporate operations, a concern that’s heightened since the SEC has stopped prodding companies on climate-related disclosures.

The Securities and Exchange Commission last issued a climate change-related public comment letter in September 2016, when it asked Chevron Corp. to expand its risk factor disclosure related to California’s greenhouse gas emission regulations. Read more>

End of Days Data: Climate Content Heats Up
July 12, 2018

Hurricane season in the Atlantic Ocean typically lasts from June to November, with the brunt usually hitting in the months of August and September. In recorded history, there have been a total of 33 Category 5 hurricanes, which are storms that have sustained wind speeds of over 157 miles per hour, or 136 knots. Between 1924 and 2002, there were 22 Category 5 hurricanes recorded in the Atlantic. From 2003 through 2017 there were 11, with three coming in the last two years. In addition, since 2001, there have been 24 Category 4 hurricanes (storms with wind speeds of 130 to 156 mph)—compared to a total of 47 over the previous 50 years. Whatever your political beliefs are relating to climate change, it’s a proven fact that catastrophic storms have become bigger, more frequent, and more costly in the 21st century. Read more>

Transparency Vital in Assessing the Risk Posed by Climate Change
June 26, 2018

Many of us in the northern hemisphere have worked through the warmest May on record. No wonder physical climate risk is a hot topic for investors. Poor them. Having been made to wrap their heads around the concept of transition risk — the effect of decarbonisation on portfolio returns — they now have to think about exposure to rising sea levels, extreme heat and cyclones. Read more>

Investors Urged to Engage with Companies on Physical Climate Risks
June 7, 2018

Investors are being encouraged to engage with companies on physical climate risks, both reactively and proactively, by identifying those with the biggest exposure to extreme weather events. Read more>

 Investors Push for Climate Risk Disclosures
June 5, 2018

While companies may drag their feet on disclosing the true extent of their risks relating to climate change, investors can overcome such subterfuge by raising awareness of the risks and engaging directly with targeted companies. So says Four Twenty Seven, a provider of climate risk intelligence for financial markets.

Shareholder engagement on climate change already has grown tremendously in recent years, notes a new report from the firm. More than 270 institutional investors, collectively managing almost $30 trillion of assets, have joined in an effort called Climate Action 100+. Read more>

Firm Pinpoints Governments at Greatest Risk from Climate Change
May 31, 2018

Four Twenty Seven, a Berkeley, California, company that developed software to track climate change risks for private companies, wants to help bond investors evaluate the risks to cities and counties.

Focusing on climate change-based economic risk analysis, the company created a software application using data to model the risks for cities and counties after it received a request from Breckinridge Capital Advisors, a fixed-income fund manager. Read more>

EBRD Publishes Guidance for Firms Disclosing Climate Impacts
May 31, 2018

LONDON (Reuters) – The European Bank for Reconstruction and Development has published guidance for companies reporting on the physical impact of climate change in their financial results.

Concerns in the financial community that assets are being mispriced because climate risk is not being factored into financial reporting has prompted demand for more meaningful and transparent climate-related financial information. Read more>

 How Does Climate Change Affect Your Community?
May 23, 2018

Climate change is a beast, melting glaciers, destroying vegetation, raising temperatures, and decreasing property values.

A new report from advisory firm Four Twenty Seven identifies US municipalities most exposed to climate hazards like hurricanes, sea level rise, extreme rainfall, heat stress, and water stress. Read more>

Deutsche AM Puts its Money on Measurement of Physical Climate Risk
November 13, 2017

Deutsche Asset Management is set to consider companies’ exposure to catastrophic climate events as part of its investment decision-making.

Deutsche developed the new approach with the help of California-based climate intelligence advisory firm Four Twenty Seven. The latter has mapped the physical locations of more than 1m corporate facilities globally and uses scientific models to assess the likelihood of them being affected by climate hazards such as heatwaves, floods and cyclones. Read more>

Deutsche Bank Maps Climate Risks to Investments
November 9, 2017

Deutsche Bank has created a new tool to identify the threats that climate change poses to its investment portfolios worldwide, making use of state of the art climate models.

In partnership with Four Twenty Seven, a climate intelligence advisory firm, the bank has developed maps and advance climate science models that can be used to determine the vulnerability of business sites and calculate their exposure to catastrophic events caused by climate change, including heatwaves, floods and intense storms. Read more>

Deutsche Bank Deploys Tool to Map Climate Investment Risks
November 8, 2017

Deutsche Bank AG’s asset-management unit is using a detailed map to determine where natural disasters spawned by climate change may pose the greatest risks to its investment portfolios.

Deutsche Asset Management is using data from Four Twenty Seven, a California climate advisory firm that mapped the locations of more than 1 million corporate, manufacturing and retail sites globally to gauge companies’ exposure to hazards such as hurricanes, heat waves, floods, droughts and wildfires. Read more>