Climate change poses growing challenges for real-asset investors. What’s the key to building resilience into buildings, infrastructure and other such investments?
As hurricanes, droughts and other severe weather events grow more frequent and destructive, investors who own real assets—such as buildings, airports, pipelines and cell towers—need to take stock of how resilient their portfolios are. That is, how much has been done to plan for adverse events and how ready are all stakeholders to respond and recover?
Building up resilience involves taking a life-cycle approach to managing such investments: preparing for big weather-related disruptions, handling them deftly when they happen, and working with insurers, local authorities and others along the way. A recent report from Morgan Stanley ‘s Real Assets Investing Team and the firm’s Institute for Sustainable Investing, “Weathering the Storm: Integrating Climate Resilience into Real Assets Investing,” lays out the steps that investors should take to apply a “climate lens” to their properties.
READ MORE of my freelance story (published 09/11/2018) on Morgan Stanley’s website.