Europe's Most Climate Resilient Cities Revealed
- CBRE's 'European City Sustainability Study 2024' ranks European cities on climate resilience.
- Birmingham, London, and Manchester among the top ten resilient cities.
- Study emphasizes the need for decarbonization in the built environment.
- Real estate exposure to climate risk varies across Europe.
- UK cities perform well but more efforts needed to meet net zero targets.
- None.
Insights
An analysis of the European City Sustainability Study 2024 reveals significant implications for urban economic planning and real estate investment strategies. The variation in real estate exposure to climate risk across Europe indicates that investors need to factor in the resilience of cities to climate change when making decisions. A city's ability to adapt to and mitigate climate risks could influence future property values, insurance premiums and maintenance costs.
Furthermore, cities that rank high in climate resilience may attract more investment due to perceived lower risk and a proactive stance on sustainability. This could lead to a virtuous cycle, enhancing their economic stability and growth potential. On the other hand, cities with lower rankings might face capital flight, as investors seek to minimize exposure to physical climate risks and transition risks associated with shifting regulatory landscapes and consumer preferences.
It is also important to consider the broader economic implications of decarbonizing the built environment. As real estate accounts for a substantial portion of carbon emissions, cities that lead in implementing green building standards and renewable energy initiatives could become hubs for green technology and sustainable practices, potentially creating new industries and job opportunities.
The findings of the 'European City Sustainability Study 2024' serve as a critical tool for sustainability-focused investors. The performance of UK cities like Birmingham, London and Manchester in the top ten underscores the importance of incorporating Environmental, Social and Governance (ESG) criteria into investment portfolios. Real estate assets in cities with high sustainability rankings may present lower risk profiles and greater resilience to regulatory changes aimed at combating climate change.
Investors might also consider the potential for long-term cost savings and value retention in sustainable properties, as these are likely to be more adaptable to future environmental regulations and consumer demands for green living spaces. Moreover, the study highlights the heterogeneity of climate readiness across Europe, suggesting that a granular approach to ESG investing is necessary, rather than broad regional assumptions.
It is essential for investors to monitor ongoing sustainability efforts and climate resilience improvements in these cities, as these factors can significantly influence the attractiveness and competitiveness of real estate markets. The study may also prompt a reevaluation of investment strategies, with a possible shift towards assets in cities that demonstrate strong sustainability credentials.
The rankings provided by the 'European City Sustainability Study 2024' have profound implications for urban development and policy-making. Cities that have scored well in the study, particularly the UK cities of Birmingham, London and Manchester, showcase successful integration of climate resilience into urban planning. The emphasis on transition risk, physical climate risk and mitigation and adaptation measures reflects a comprehensive approach to sustainable development.
For urban developers, this study serves as a guidepost for future projects, emphasizing the need for infrastructure that can withstand climate-related events and regulations that encourage or require sustainable construction practices. The ability to implement renewable energy sources is also a critical factor, as it directly contributes to reducing a city's carbon footprint and aligns with global efforts to combat climate change.
Urban developers should take note of the innovative practices and policies that have led to high rankings for these cities. By replicating successful strategies, such as the deployment of green infrastructure or the incentivization of energy-efficient buildings, other cities can improve their resilience and appeal to both residents and investors seeking sustainable living environments.
LONDON, UK / ACCESSWIRE / March 12, 2024 / Global real estate advisor, CBRE, has published its ranking of European cities according to their resilience to the impacts of climate change. The report, ‘European City Sustainability Study 2024,' evaluated the performance of 42 cities across Europe in relation to a number of factors, from transition risk, building performance standards and level of air pollution to future flood risks and ability to implement renewable energy. Three UK cities ranked within the top ten, including Birmingham, London and Manchester.
The study provides real estate professionals and investors with insights to help understand different markets, the opportunities and challenges they face.
Out of 42 cities assessed, the study ranked the top 10 in terms of climate resiliency as:
- Amsterdam, The Netherlands
- Birmingham, United Kingdom
- Gothenburg, Sweden
- Helsinki, Finland
- London, United Kingdom
- Manchester, United Kingdom
- Oslo, Norway
- Paris, France
- Rotterdam, The Netherlands
- Stockholm, Sweden
By improving the understanding of Europe's key cities in terms of climate readiness, we hope to galvanise not only the property industry and investors, but also broader stakeholders, to take note of the need to prepare against the worst effects of climate change. While many cities may regard themselves as being leaders, this survey holds some surprises and warns against complacency.
Jen Siebrits, Head of UK research, CBRE
A key finding of the study is that real estate exposure to climate risk varies significantly across Europe, as does the challenge to decarbonise the built environment, which accounts for
Within the study, there were three primary categories upon which each city was assessed:
- Transition risk: the risks to business associated with societal and economic shifts towards a lower-carbon future
- Physical climate risk: the particular city's vulnerability to climate change
- Mitigation and Adaptation Measures: the city's ability to implement recommended environmental initiatives to limit climate change
UK cities have performed particularly well, with Birmingham, London and Manchester all appearing in the top ten. This is testament to efforts so far to prepare for the inevitable effects of climate change. However, there is much work to be done and no room for complacency if we are to deliver against the country's much needed net zero targets.
Kaela Fenn-Smith, Managing Director, ESG Consultancy and Sustainability Services, CBRE
Read more about the European City Sustainability Study 2024 report here
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world's largest commercial real estate services and investment firm (based on 2022 revenue). The company has approximately 115,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
View additional multimedia and more ESG storytelling from CBRE Group, Inc. on 3blmedia.com.
Contact Info:
Spokesperson: CBRE Group, Inc.
Website: https://www.3blmedia.com/profiles/cbre-group-inc
Email: info@3blmedia.com
SOURCE: CBRE Group, Inc.
View the original press release on accesswire.com
FAQ
Which study did CBRE publish ranking European cities based on climate resilience?
Which UK cities ranked within the top ten in the study?
What percentage of global carbon emissions does the built environment account for?
What were the three primary categories upon which each city was assessed in the study?
What is the key finding of the study regarding real estate exposure to climate risk across Europe?
