Strategic Focus: The Resilience Imperative For Real Assets Investors

Executive Summary

The world is warming faster than climate scientists initially projected, with 2024 marking the hottest year on record and the 1.5°C Paris Agreement threshold now surpassed. As temperatures rise, physical climate risks are intensifying, threatening the infrastructure and built environments that support global economies and societies. Yet climate finance remains heavily skewed towards mitigation, with roughly 90% of funding focused on emissions reduction, leaving adaptation and resilience underfunded and underprioritized. This imbalance exposes real assets – such as real estate, infrastructure and natural resources – to escalating climate shocks. This report underscores the strategic imperative for investors to embed climate resilience into their decision-making and highlights the tools available to support that shift.