Real Estate Investment Trusts (REITs)

Real Estate Investment Trusts (REITs) are particularly exposed to climate change, given that their valuations are determined by the quality of the assets which underlay them.

REITs are often characterized as providing a diversifying benefit for equity investors. However, their very nature means that REITs can be highly exposed to idiosyncratic risk due to the location of their underlying holdings.

Four Twenty Seven partners with Geophy, a market leader in REITs valuation solutions, to provide detailed insights on the physical risks of REITs. We distill a broad array of climate and other data sources to calculate climate risk scores for the over 73,000 individual real estate sites that make up the universe of REITs we cover. These analytics can be used by REITs investors for risk mitigation and portfolio construction.

Product Sheet:
Real Estate Investment Trusts

Learn More:
Report: Climate Risk Real Estate and the Bottom Line
Real Estate Climate Risks: How Will Europe be Impacted?
Anticipating Sea Level Rise Impacts on Real Estate Investments

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Equities and Fixed Income

Climate change is bound to bring major disruptions to economies and valuations of listed companies globally.

Four Twenty Seven’s physical climate risk scores for corporate equities and fixed income instruments captures the climate risk exposure of companies based on the precise location of their facilities around the world. Scores are developed using precise climate and flood risk data accounting for facility activity, and are expressed relative to a benchmark of over one million facilities globally. The company scores also include indicators for supply chain and market risk.

Leveraging big data analytics, our physical climate risk scores offer greater transparency for investors and banks to understand their exposure to a wide range of climate-related risks, develop  risk mitigation strategies, and construct climate-aware optimal portfolios.

Product Sheet:
Corporate Physical Climate Risk Scores (ENG)
Corporate Physical Climate Risk Scores (JPN)

Learn More:
Scenario Analysis for Physical Climate Risk: Equity Markets
Physical Climate Risk in Equity Portfolios – White Paper
Can Investors Anticipate the Impacts of Climate Change on Equities?
Engaging with Corporates to Build Adaptive Capacity
Responding to Economic Climate Risk in Australia
PRI Webinar: Measuring and Managing Physical Climate Risk

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Municipalities and Sovereign

Climate change’s macroeconomic impacts can affect muni and sovereign tax bases and revenue outlooks, with serious implications for bond buyers and rating agencies.

Four Twenty Seven’s physical climate risk scores measure relative exposure of U.S. cities and counties to cyclones, sea level rise, extreme rainfall, heat stress and drought.

Our country climate risk index combines climate hazard exposure data with economic and social information to depict nation-level vulnerabilities to climate impacts. Forthcoming analysis will incorporate assessments of sub-national administrative boundaries for all countries globally.

Leveraging big data analytics, our physical climate risk scores offer greater transparency for investors and credit rating agencies to understand local economic risk driven by climate impacts.

Product Sheet:
Municipal Risk Scores

Learn More:
Assessing Exposure to Climate Risk in U.S. Municipalities 
Credit Quality in U.S. Governments Exposed to Heat Stress
Responding to Economic Climate Risk in Australia

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