Aligning GPT’s and Investor’s Climate Risk Understanding

GPT’s Sustainability Team works with our investors to reach an aligned understanding of climate-related risk levels of our assets.


This is achieved through a comprehensive approach that encompasses asset-level climate modelling and contextual analysis of the climate data using stakeholders’ detailed knowledge of each asset and the surrounding environment.


Armed with these inputs, the next step is to develop climate adaptation plans to manage any identified climate-related risks.


In a recent collaboration between a GPT Wholesale Shopping Centre Fund investor and GPT’s Sustainability Team, our investor identified a large difference in the modelled climate-related risk levels at a key asset. Our investor had procured flood modelling from a globally recognised climate risk modelling company which indicated that the asset was at a high risk of flooding. GPT had also completed a climate risk review and adaptation plan, utilising climate modelling procured from the Cross Dependency Initiative (XDI), which contrary to the original findings, showed negligible flooding risk.


By engaging our asset team, who have an intimate knowledge of the centre and surrounding topography, as well as our Climate Risk Analyst, Building Performance Team, and external consultants to overlay their site-specific knowledge, we identified differences with our investor’s modelling and transparently shared our detailed results.


Our investor subsequently scrutinised their flood modelling further to understand the cause of the discrepancy and adjusted down the risk rating.


“Our asset teams and Sustainability Team have the tools and know-how to address climate-related risks in our shopping centres, and by working together with investors we can address their risk concerns” - David Sleet, Fund Manager, GPT Wholesale Shopping Centre Fund.


By providing data-driven and detailed asset, fund or portfolio-level climate risk assessments, compiled by subject matter experts, GPT is able to better inform our decisions making, mitigate climate-related risk and boosts investor confidence.