“A history of stability in real estate may be about to be challenged,” warns Climate Alpha’s founder and CEO Parag Khanna in a wide-ranging interview with IPE Real Assets.
Covering everything from the complexity of climate data to which places are sunk (New Orleans) and which might be saved (Miami), Parag underscores the importance of calibrating climate-risk models when balancing risk averseness with a hunger for yield. “The ESG team might be arguing ‘sell it now’, but the investment committee will push back with the question, ‘no, sell it when?’” he says.
Timing is everything, especially in communities with the political will and resources to adapt. Which is where Climate Alpha comes in, with our suite of tools combining climate risk with quality of life to create a more holistic view of assets under multiple scenarios.
“Ultimately, what we’re trying to produce is the climate price, by which I mean the deviation from the baseline expectation of valuation for any given year,” Parag says. “Not all assets will decline in value. The outcomes can be scary or they can be promising.”
See for yourself — visit www.climatealpha.ai and sign up for a free account, whether you’re an investor, public official, or homeowner and discover where your future lies.
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