Physical climate risks approach

Slättö integrates physical climate risks in transactions and asset management. 

We use a four-step process based on the Taxonomy standards:

• Assess the risk exposure of an asset 
• Assess if the asset is vulnerable, and what the material impacts would be if any
• Identify the solutions to adapt the assets to a changing climate 
• If the impacts are material and the solutions feasible, implement the solutions 

The assessments are not limited to desk-based review. Together with external experts, Slättö conducts asset-specific, on-site assessments that consider local topography, drainage systems, and historical weather patterns. 

As examples, in logistics and light industrial, Slättö identified heat risk and responded with installation of sunscreen. In residential, a desktop analysis identified flood risk, but the subsequent on-site analysis concluded that the actual risk was low. 

The result of this work is increasing the share of assets in Slättö’s portfolio where climate risks are managed in line with the EU Taxonomy criteria; and lowering the risk of physical damages or financial losses linked to climate-related events.