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

This briefing outlines the landscape of climate risk reporting, distinguishing between physical, transition, and systemic risks. It details various international standards (such as TCFD, ISSB, and SASB) and EU-specific regulations (including SFDR, CSRD, and the EU Taxonomy) that mandate or encourage sustainability disclosures. The text highlights a shift toward 'double materiality' in EU law and identifies a growing need for standardized data and a value-chain perspective in real estate risk assessment.

• 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 encompass 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, focusing on governance, strategy, risk management, and metrics and targets using a single materiality approach.
• EU regulations are increasingly adopting a 'double materiality' approach, requiring companies to report both the financial impact of sustainability issues on the company and the company's own impacts on the environment and society.
• The EU Taxonomy provides specific technical screening criteria for 'Construction and real estate activities', including a Primary Energy Demand (PED) threshold 10% lower than national nearly zero-energy building requirements for new construction.
• For banks assessing real estate portfolios, Energy Performance Certificates (EPCs) remain a primary tool for understanding exposure to transitional climate risks, despite uncertainties regarding the assumptions and calculations used in energy classifications.
• There is an emerging requirement for companies and banks to integrate human rights due diligence into their climate responses, specifically regarding the impacts of physical climate effects on vulnerable groups and the social impacts of transition risk responses.

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} }