"Without meaningful intervention, the IPCC projects that the planet will likely reach 1.5°C (2.7°F) above pre-industrial levels between 2030 and 2050. It is clear that real estate investors and developers can no longer avoid risk related to climate change". 

These are words in the Executive Summary of this ULI/ LaSalle Climate Risk Roadmap. For those in the industry and looking to understand where it currently stands on climate change risk, this report is well worth a read. One interesting observation: the parallels between physical climate risk and previous industry risks that have emerged - the report refers to "terrorism risk in the 2000s" and (with the report having a US leaning) "environmental and legal risk in the post-Superfund era of the 1980s". 

As the report states, "in both cases the industry struggled to understand risk related to both event and long-term uncertainty. In response, firms focussed on measurement and management and developed the tools that underpin due diligence today (e.g. the Environmental Phase I and II reports) as they likely will here". 

The sense from the report is that the industry is very much on that journey but there is a long way to go. Indeed, the principal takeaway from the report is that whilst climate risk is an ever important part of investment decision making, there is a lack of alignment in scoring that risk. As one interviewee in the piece states: “While everyone starts with similar flour, eggs, and sugar, we’re all making different dishes...at this stage, some are making biscotti while others are making birthday cake".