Our industry is engaged in an important dialogue to improve the efficiency and resilience of real assets through transparency and industry collaboration. This article is a contribution to this larger conversation and does not necessarily reflect GRESB’s position.
In the evolving real estate landscape, climate resilience has become a new industry standard. With the introduction of scored climate risk and resilience indicators in 2023—and a planned increase in scoring weight in 2026—GRESB is doubling down efforts on climate resilience and signaling to the industry that the time to act is now.
From risk management and assessment to ESG requirements, whether to meet GRESB standards or to simply build a foundation for resilient property management, it all starts with the ability to answer three core resilience questions:
What are the climate risks at this location?
This is the starting point for every resilient building. It is critical to understand the specific hazards—from flooding and extreme heat to storms and drought—that threaten your property or project site. A low-cost risk exposure screen from a reliable provider can answer this question.
What is the financial impact of these hazards on my asset?
For high-risk properties, it is critical to quantify potential impacts (losses) in financial terms. This requires more in-depth analysis to provide both insights and solutions that can, in turn, drive decision-making.
Understanding climate hazards is only the first step. To make informed decisions, owners and managers need to translate risk into dollars. That means quantifying how extreme heat, flooding, or windstorms will increase the capital costs to maintain or repair building systems over time. This is where a Climate Value at Risk (CVaR) assessment becomes indispensable. Unlike generic top-down models, CVaR leverages building-specific data to project when and where climate impacts will be felt—down to the specific building systems that will be impacted—and attaches credible financial values to those risks. A CvaR turns climate uncertainty into dollar-denominated forecasts to inform capital planning, insurance discussions, and smart investment.
What should be done to address the risk?
Once you understand where and how your asset is exposed, the next step is to prioritize the right interventions. This is where generic advice falls short. A credible CVaR assessment doesn’t just highlight risk—it identifies which systems are most vulnerable and when failures are likely to occur. Included within the CVaR is a tailored resiliency plan that provides a practical roadmap. You know which upgrades to prioritize, what costs to expect, and how each measure will reduce exposure.
By answering these questions with credible data and insights, you not only meet GRESB’s resilience requirements but also enhance your property’s resilience, value, and operational stability.
From reporting to results
Gone are the days of manual climate data collection. Technology, like ClimateFirst, automates assessments and documentation, freeing your team to focus on implementing meaningful protection measures.
With GRESB encouraging the commercial real estate sector to embrace a new baseline approach to resilience, you are moving beyond checking compliance boxes. It is now about answering the right questions to make smarter, forward-thinking investments in your property’s future.
This article was written by Mike Williams, President & Co-Founder of ClimateFirst. Learn more about ClimateFirst here.