AI Quick Summary
Correntics has received feedback from several real estate investors that they are looking for insights into improving the climate resiliency of their assets, however there are no products on the market that give them the insights into adaptation solutions that they are looking for. We are therefore exploring ways to enhance the climate resiliency of real estate by offering clients actionable adaptation solutions. Correntics believes that Building a Climate Adaptation Recommendations System for Real Estate (CARS4RE) is a solution that would widely appeal to the investor community for real estate assets.Therefore, we have established a database of adaptation measures tailored to reduce risk across various asset types. Our next step is to map these solutions to specific climate hazards and asset categories within our software, creating a dynamic recommendation system to guide adaptation action. While the concept is in place, further research into the market potential, expansion and implementation is needed.
Investors face increasing exposure to physical climate risks across their real estate portfolios. From flooding and heatwaves to wildfires and sea level rise, these risks can materially impact asset value, interrupt business operations, increase insurance costs, and even long-term supply chain resilience. As a result, there is a growing need for investors not only to assess climate risks but also to actively manage and mitigate them. This is why Correntics aims to build a new product, a Climate Adaptation Recommendations System for Real Estate (CARS4RE), to engage and activate real estate investors on how to take meaningful action to combat climate change risks within their portfolios.The Adaptation Recommendation System would be grounded in a robust database of adaptation solutions, each designed to address specific climate hazards and tailored to different asset types. Rather than providing generic advice, Correntics maps these solutions directly to the risks identified during a climate risk assessment. The result is a targeted, actionable roadmap that shows investors what can realistically be done at the asset level to improve climate resilience. For investors, this has multiple benefits:Risk Reduction and Value Preservation: By implementing adaptation measures from the recommendation system, investors can reduce the likelihood and severity of climate-related damage. Action-focused Insights and Decision Making: The system transforms climate risk data into tangible next steps. It bridges the gap between risk identification and intervention, making it easier for asset managers to justify investments in resilience based on clearly mapped hazards and asset vulnerabilities.Regulatory and Sustainability Reporting Compliance: Investors are under increasing pressure to align with regulatory frameworks, such as CSRD and ESRS, and disclosure requirements, like TCFD. A structured, transparent outline of adaptation actions provides clear documentation of due diligence and supports climate-resilient investment strategies.Portfolio-Level Insights and Planning: When rolled out across a portfolio, the checklist can highlight common vulnerabilities and adaptation opportunities. This enables investors to plan interventions on at scale, prioritize funding, and track progress over time. It also provides a basis for engaging with asset managers, GPs, LPs, and tenants on shared resilience responsibilities.In summary, the CARS4RE product would take the Correntics tool go well beyond risk identification and quantification, helping it to enable investors to proactively protect and future-proof their portfolios, act on regulatory reporting analytics, and turn climate risk into an opportunity for sustainable value creation.Further down the road, we aim to also offer the ability to identify adaptation solutions providers within our platform, which would further connect the Correntics risk assessment with actions on-the-ground, adding additional value to real estate investor clients.
Project Idea Description
Investors face increasing exposure to physical climate risks across their real estate portfolios. From flooding and heatwaves to wildfires and sea level rise, these risks can materially impact asset value, interrupt business operations, increase insurance costs, and even long-term supply chain resilience.
As a result, there is a growing need for investors not only to assess climate risks but also to actively manage and mitigate them. This is why Correntics aims to build a new product, a Climate Adaptation Recommendations System for Real Estate (CARS4RE), to engage and activate real estate investors on how to take meaningful action to combat climate change risks within their portfolios.
The Adaptation Recommendation System would be grounded in a robust database of adaptation solutions, each designed to address specific climate hazards and tailored to different asset types. Rather than providing generic advice, Correntics maps these solutions directly to the risks identified during a climate risk assessment. The result is a targeted, actionable roadmap that shows investors what can realistically be done at the asset level to improve climate resilience. For investors, this has multiple benefits:
- Risk Reduction and Value Preservation: By implementing adaptation measures from the recommendation system, investors can reduce the likelihood and severity of climate-related damage.
- Action-focused Insights and Decision Making: The system transforms climate risk data into tangible next steps. It bridges the gap between risk identification and intervention, making it easier for asset managers to justify investments in resilience based on clearly mapped hazards and asset vulnerabilities.
- Regulatory and Sustainability Reporting Compliance: Investors are under increasing pressure to align with regulatory frameworks, such as CSRD and ESRS, and disclosure requirements, like TCFD. A structured, transparent outline of adaptation actions provides clear documentation of due diligence and supports climate-resilient investment strategies.
- Portfolio-Level Insights and Planning: When rolled out across a portfolio, the checklist can highlight common vulnerabilities and adaptation opportunities. This enables investors to plan interventions on at scale, prioritize funding, and track progress over time. It also provides a basis for engaging with asset managers, GPs, LPs, and tenants on shared resilience responsibilities.
In summary, the CARS4RE product would take the Correntics tool go well beyond risk identification and quantification, helping it to enable investors to proactively protect and future-proof their portfolios, act on regulatory reporting analytics, and turn climate risk into an opportunity for sustainable value creation.
Further down the road, we aim to also offer the ability to identify adaptation solutions providers within our platform, which would further connect the Correntics risk assessment with actions on-the-ground, adding additional value to real estate investor clients.
Correntics has received feedback from several real estate investors that they are looking for insights into improving the climate resiliency of their assets, however there are no products on the market that give them the insights into adaptation solutions that they are looking for. We are therefore exploring ways to enhance the climate resiliency of real estate by offering clients actionable adaptation solutions. Correntics believes that Building a Climate Adaptation Recommendations System for Real Estate (CARS4RE) is a solution that would widely appeal to the investor community for real estate assets.
Therefore, we have established a database of adaptation measures tailored to reduce risk across various asset types. Our next step is to map these solutions to specific climate hazards and asset categories within our software, creating a dynamic recommendation system to guide adaptation action. While the concept is in place, further research into the market potential, expansion and implementation is needed.