IIGCC has published a new discussion paper, Physical Climate Risk Divergence: PCRAM for investors, offering insights on how investors can integrate the Physical Climate Risk Assessment Methodology (PCRAM) into their existing investor processes.
This latest discussion paper proposes ways that investors could consider integrating PCRAM into existing investor processes. This includes portfolio design, project and deal origination, due diligence, credit and investment committee approval, stewardship and engagement, as well as ongoing risk and portfolio management.
It outlines how real estate and infrastructure investors could apply the PCRAM methodology (subject always to individual investors own due diligence) throughout the investment processes. It also highlights the potential of PCRAM to assist investors in moving beyond a sole risk management lens to a value creation exercise.
This publication builds on our August 2024 report, PCRAM in Practice, which highlighted case studies demonstrating the potential of PCRAM to access physical climate risk (PCR) at the asset level.
The latest discussion paper, developed in discussions with IIGCC members as part of our Adaptation and Resilience working group, hopes to work towards:
- Supporting standardisation of assessments.
- Standardised PCR assessments that will form the basis of IIGCC’s Climate Resilience Investment Framework (CRIF).
- Opportunities for value creation in resilience investment.
