Investors are now asking funds to monitor and disclose their exposure to climate risk. MSCI has developed a tool that assesses the costs faced by RE portfolios generated by climate change. This financial approach measures both the physical risk (costs of damage generated by extreme weather) and transition risk (costs of decarbonisation).
MSCI proposes to calculate these risks for all funds in the UKPFI in order to create index-level analysis. This one-off analysis will be done free of charge for all funds contributing their climate data to MSCI. Please get in touch with your main contact at MSCI to be part of this exciting project. It would make the UK PFI one of the first indices to measure Climate exposure. It is also great insight into where the RE funds lie in terms of climate analysis.