Measurabl’s Physical Climate Risk Exposure (PCRX) feature enables users to identify and understand their physical climate risks and opportunities across their real estate portfolio for earthquakes and six different climate risk hazards including: floods, heat stress, water stress, hurricanes & typhoons, sea level rise, and wildfires.
See below for frequently asked questions regarding PCRX:
What are physical climate risks?
- Risks arising from the physical effects of climate change, which can directly affect the value of assets. Physical climate risks can be acute or chronic in nature, with acute risks encompassing extreme events such as floods, droughts, and storms, and chronic risks referring to longer-term, slower onset changes such as rising temperatures and sea level rise.
Who provides this physical risk data for PCRX?
- Four Twenty Seven, an affiliate of Moody’s and a leading provider of data and analysis on physical climate and environmental risks.
What is Four Twenty Seven’s data coverage?
- Four Twenty Seven can score virtually any onshore/terrestrial location globally for the climate hazards of heat stress, water stress, floods, sea level rise, hurricanes & typhoons, earthquakes, and wildfires.
How are Four Twenty Seven’s risk scores calculated?
- Four Twenty Sevens’ data and analytics rely on best-in-class, peer-reviewed climate models and environmental datasets from the IPCC, NASA, NOAA (the National Oceanic and Atmospheric Administration), and others, and is supplemented by commercially available data sources.
- Each hazard risk score is calculated based on several indicators that capture different dimensions of risk presented by the hazard. Assets receive a score from 0-100 (percentile) for each hazard and are assigned a risk threshold, ranging from low risk to red flag, or highest risk, based on the score.
What risk categories does PCRX support?
- Earthquakes
- Floods
- Heat Stress
- Water Stress
- Hurricanes & Typhoons
- Sea Level Rise
- Wildfires
What are the risk levels?
- For each risk category, the risk scores fall into different risk levels: No Risk, Low Risk, Medium Risk, High Risk, and Red Flag.
What are risk category indicators?
- Indicators are metrics that are measured to calculate the risk score. Each one is chosen to capture a different dimension of risk presented by the hazard.
What does Red Flag Mean?
- Red Flag is the highest risk level a building can have. For heat stress and water stress, “Red Flag” means that an asset falls in the 5 percent most exposed properties of all facilities in the Four Twenty Seven "Investible Universe". Floods, hurricanes & typhoons, and sea level rise are based on absolute thresholds due to the binary nature of risk for these hazards, where an asset is either susceptible or not, and “Red Flag” signifies that an asset is highly exposed to historical and/or projected risks.
- More details on the methodology behind PCRX can be found here.
How often is PCRX data updated?
- Four Twenty Seven integrates updated climate data as it is available which varies based on climate hazard, but can often be over the longer timeframes of scientific research which can be 5-6 years.
Who has access to this feature?
- Groups who purchase PCRX have access to this feature
- Buildings: any building that has been enrolled in the integration will be accessible via the PCRX dashboard.
- Users: Group/Subgroup Members and Managers will have access to the PCRX dashboard.
What is the new scoring methodology by 427 that was released on 4/19/20?
- Previously, 427 scored the physical risk of buildings benchmarked against their corporate facility database which is geographically weighted towards sites in the US and China. Because they based their risk scores on their database, when they added new corporate data, they would have to "recalibrate their baseline", so to speak, which would result in the need to update score thresholds every time new business data was added.
- In the latest update, they defined a new baseline that is now independent from the corporate facilities database. 427 defined an “investible universe”, identifying all areas of the globe where economic activity takes place. Going forward a building’s 427 scores will convey the exposure of the site compared to all economically productive areas globally, rather than compared to the 427 corporate database. This stabilizes Measurabl clients’ scores over time as the 427 corporate database changes and expands.
Why did 427 move from absolute scores to percentile-based scores?
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Scores had bunching around certain scores based on where the buildings were geographically. Having percentile-based scores alleviates bunching and scores are more flat across the whole scale.
To start understanding the physical climate risks and opportunities of your portfolio, sign up for Measurabl today.
Feel free to reach out to our Support Team for any further questions about PCRX!