Sustainable Investment Forum North America 2022
ICE’s John Sheffield, Senior Director and Product Architect, joins a panel at the Sustainable Investment Forum North America discuss key trends for sustainable real estate investing in the region.
As concern about climate risk disclosure grows, an analysis of ~800,000 U.S. municipal bonds representing over $2.5T in outstanding debt shows no evidence it is being systematically priced in. Yet event-based climate risk is correlated with discounts in both property value appreciation and population growth over the past decade -- the pillars of municipal market tax revenue and stability.
We used our data to look at how property values, population growth and mortgage delinquency correlated with higher climate risks.
Catastrophic wildfires are expected to be ~15% more likely across the U.S. by 2060, assuming a business-as-usual carbon emissions trajectory in the coming decades, which would increase annual average economic damage from wildfires by ~8%. Based on our analysis, upper bounds on our climate model projections imply increases in wildfire risk could be substantially higher in a worst-case scenario.