JLL UK partners with The Climate Service to assess the impacts of climate risk for clients
The service will focus on identifying and effectively managing climate risk exposure
JLL has announced its strategic partnership with The Climate Service (TCS), a leader in climate risk analytics for investors, lenders, and businesses, to advise clients on the exposure of their organisation to climate change. This is one of the first partnerships between a UK real estate professional services firm and a climate risk analytics provider.
Leveraging TCS’s Climanomics® software platform, JLL will provide clients with a holistic offering for their real estate portfolio incorporating technical design, capital markets, sustainability and advanced scientific capabilities, across the asset lifecycles.
The UK government has set out proposals to make the recommendations of the Taskforce on Climate-related Financial Disclosures mandatory from next year for large publicly quoted companies, large private companies, and LLPs, which represents a critical stage in the regulatory path for the UK’s climate change transition. JLL’s unique partnership with TCS will enable clients to leverage our collective expertise to support their disclosure reporting whilst embedding climate resilience at each stage of the organisation’s pathway to net zero carbon.
The new service will work with clients to understand the risks that climate change poses to their real estate portfolio performance and implement preventative measures to ensure better organisational and portfolio resilience. This will include a review of their existing ESG strategy and approach to identifying, managing, and reporting on climate related risk. JLL will offer climate change scenario modelling and materiality review of key climate change risks, ensuring clients understand the impact on their business. It will also undertake in-depth assessments of business wide and property specific risk including the value at risk and develop portfolio recommendations for improving resilience. Using JLL’s specialist technical design teams, it can support its clients to build resilience at the asset level through managed interventions, such as heat stress modelling, to minimise the impact to occupiers.
JLL’s climate resilience service is fully aligned with the best practice recommendations of the Taskforce on Climate-related Financial Disclosures which were developed in response to an increasing need to better understand the financial impacts of climate change. This reporting framework is the first of its kind and has already been endorsed by several governments, financial authorities, and market leaders.
JLL believes that early adoption of disclosure in line with Taskforce on Climate-related Financial Disclosures recommendations will not only help businesses to meet increasing investor expectations, but also allow them to capitalise on new opportunities and successfully manage risk and build resilience.
Christi Vosloo, climate risk expert at JLL, who will lead the service, said: “Extreme weather events, heat stress, flooding and water stress already present significant challenges to the way in which businesses operate. These impacts are predicted to increase in severity and intensity, yet information on climate change is still poorly disclosed and understood despite it being one of the most significant sets of risks that property owners, financial institutions, and lenders face today. JLL’s tailored approach to climate risk will support our clients in identifying and understanding the risks while opening up opportunities to build resilience.”
Joseph Lake, COO of The Climate Service, added: “With advanced technology and terabytes of scientific data, the Climanomics® platform enables climate scenario analysis with outputs in financial terms; it puts a price on climate change. It thus enables all departments to quantify, communicate, and embed climate risk into virtually every facet of a company’s operations - essential for risk mitigation and planning in the face of the greatest challenge of our era. This innovative partnership with JLL will leverage the full potential of the platform and confer significant strategic advantage to clients.”
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion, operations in over 80 countries and a global workforce of more than 91,000 as of December 31, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.