Megatrends 360°

Incorporating Climate Data and Analysis Into the Real Asset Investment Process

Investment implications

Climate change demands that investors use new, more granular datasets and analytics.

  • Incorporating climate mitigation costs into the real estate investment process can help manage physical risks and also generate additional investment opportunities.
  • By using granular, block-by-block-level climate analysis, investors can uncover properties where climate risk has been badly mispriced.

Arctic Sea Ice is Receding

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Source: Ben Horton, "Arctic Death Spiral," accessed August 2022
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Source: Ben Horton, "Arctic Death Spiral," accessed August 2022

PGIM Megatrends Series

Long-term views on the investment implications of global megatrends.

WEATHERING CLIMATE CHANGE

Exposing the hidden portfolio vulnerabilities and potential opportunities in the transition to a lower-carbon world

Explore Other Megatrends 360° Themes

MT 360

References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities.