Climate risk reporting initiatives and requirements for Swedish real estate investors: a brief overview

This briefing by the Stockholm Environment Institute provides an overview of the evolving landscape of climate risk reporting for financial actors and corporates, with a specific focus on Swedish real estate investors. It details the distinctions between physical, transition, and systemic risks, compares international and EU-specific reporting frameworks, and discusses the shift from single to double materiality approaches in sustainability disclosures.

• Climate risks are categorized into physical risks, which include acute short-term events or chronic long-term changes to infrastructure and operations, and transition risks, which involve policy, legal, technology, market, and reputation risks associated with moving to a low-carbon economy.
• The Taskforce for Climate-Related Financial Disclosures (TCFD) serves as a foundational basis for many subsequent reporting initiatives. Its 2017 recommendations focus on four areas: governance, strategy, risk management, and metrics and targets, utilizing a single materiality approach focused on financial performance.
• EU reporting frameworks are increasingly adopting a 'double materiality' approach, which requires companies to disclose both the financial risks to their own performance and the potential impacts of their business activities on the environment and society.
• The EU has established three primary building blocks for its sustainable financial framework: the EU Taxonomy for sustainable activities, a mandatory disclosure regime for financial and non-financial companies, and various investment tools such as labels and benchmarks.
• For real estate specifically, the EU Taxonomy sets technical screening criteria for climate mitigation, including a Primary Energy Demand (PED) threshold 10% lower than national nearly zero-energy building requirements for new construction. For existing buildings, criteria include compliance with major renovation requirements or a PED reduction of at least 30%.
• Energy Performance Certificates (EPCs) are identified as a primary tool used by banks to assess exposure to transitional climate risks, despite concerns from MAVERIC partner organizations regarding the assumptions and calculations used for energy classifications.
• Emerging trends in climate risk reporting include a shift from voluntary 'nice-to-have' guidelines to mandatory 'must-have' regulations, an increasing demand for standardized data and Swedish-specific risk databases, and a growing emphasis on human rights due diligence within the transition to a sustainable economy.

APA

Moberg, Å., Piseddu, T., & Vanhuyse, F. (2023). Climate risk reporting initiatives and requirements for Swedish real estate investors: a brief overview. Stockholm Environment Institute. https://www.sei.org/wp-content/uploads/2023/09/sei-brief-2023-climate-risk-real-estate.pdf

Chicago

Moberg, Åsa, Tommaso Piseddu, and Fedra Vanhuyse. Climate risk reporting initiatives and requirements for Swedish real estate investors: a brief overview. Stockholm Environment Institute, 2023. https://www.sei.org/wp-content/uploads/2023/09/sei-brief-2023-climate-risk-real-estate.pdf.

Wikipedia

{{cite report |last1=Moberg |first1=Åsa |last2=Piseddu |first2=Tommaso |last3=Vanhuyse |first3=Fedra |title=Climate risk reporting initiatives and requirements for Swedish real estate investors: a brief overview |publisher=Stockholm Environment Institute |date=September 2023 |url=https://www.sei.org/wp-content/uploads/2023/09/sei-brief-2023-climate-risk-real-estate.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{moberg2023climate, author = {Moberg, Åsa and Piseddu, Tommaso and Vanhuyse, Fedra}, title = {{Climate risk reporting initiatives and requirements for Swedish real estate investors: a brief overview}}, institution = {Stockholm Environment Institute}, year = {2023}, month = sep, url = {https://www.sei.org/wp-content/uploads/2023/09/sei-brief-2023-climate-risk-real-estate.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }