Climate risk and resilience analysis

Climate risks are a key strategic risk today. Extreme weather events such as heat waves, heavy rainfall, or flooding as well as new regulatory requirements affect the attractiveness, usability and insurability of sites and properties and can also have a major impact on business models regarding stable supply chains. To remain capable of acting effectively in the long term, sites must be systematically assessed and made future-proof.

Whether it’s a production site, municipal infrastructure or real estate: increasing climate risks affect usage, operations and safety - potentially leading to significant damage and loss of value. At the same time, climate-related ESG risks are enshrined in the German Banking Act (KWG) and directly impact financing options, credit ratings and competitiveness.

Not only companies, but also municipalities, public institutions and organizations with extensive real estate portfolios face the challenge of adapting their buildings, locations and business models making resilient investment decisions and providing investors and supervisory bodies with transparent information on ESG risks.

Inaction is not an option. The costs of inaction are rising – financially, regulatorily and in terms of reputation. Now is the time to identify climate risks, develop appropriate adaptation and mitigation measures and strategically position sites to be resilient

We create ESRS-compliant (European Sustainability Reporting Standards) climate risk and resilience profiles for your sites and properties – including scenarios for current and future climate risks. In doing so, we consider:

• physical risks: heat, heavy rain, flooding, drought, water stress, storms
• transitional risks: regulations, CO₂ pricing, standards, reporting requirements
• E, S, and G perspectives: environmental impacts, social impacts (e.g., health, accessibility), governance

In addition, we assess your building portfolio in terms of climate neutrality and future viability, including with regard to:

• the energy performance and climate risks of the buildings
• use and occupancy rates
• cost structure and investment needs
• geographic location, neighborhood context, and access
• the future needs of your organization or municipality

Your added value

• structured data foundation for sustainability reports (e.g. according to ESRS or VSME – Voluntary Standard for Sustainability Reporting for non-listed small and medium-sized enterprises) 
• structured information base for banks, investors and regulators
• a clear overview of the physical and transitional climate risks at your sites
• transparent view of energy efficiency status and renovation needs
• development of innovative future usage concepts
• prioritized adaptation measures and investment options, based in part on participatory processes
• a sound basis for decision-making regarding site development, building use, renovation and portfolio optimization

Our target groups

• corporate sites and production facilities
• municipal buildings and infrastructure
• real estate
• public institutions
• real estate portfolios (e.g., administration, education, culture, social services)

How we work and conduct research

Fraunhofer UMSICHT serves as the interface between research, practice and regulation (ESRS, EU taxonomy). We are neutral and independent. Thanks to our experience working with companies, municipalities and public institutions, we understand the different rationales, governance structures and decision-making processes and are skilled in a wide range of methods.

• depending on the research question, we combine, among other things:
• climate risk assessment based on current climate models (CMIP6 - Coupled Model Intercomparison Project Phase 6, SSP - Shared Socioeconomic Pathway-Scenarios) 
• GIS-supported geodata analyses
• in-depth expertise in ESRS standards and sustainability reporting
• primary and secondary data collection (interviews, questionnaires, document analyses)
• building and site profiles with key metrics
• assessment matrices for climate risk, energy retrofits and societal relevance
• neighborhood context and spatial visualizations of future scenarios
• roadmaps and prioritized action plans for adaptation and investments
• participatory formats to engage relevant target groups
• specific implementation measures tailored to the target audience