The ECB leads the world in climate and sustainability requirements. As part of its goal to reach net-zero carbon emissions, the ECB requires companies to report on performance and risk exposure of asset holdings globally. While official on-site assessments are conducted every three years, companies with extensive real estate holdings typically conduct rolling valuations in manageable segments.

The bank wanted to take a tactical approach to climate risk reporting, and strategically monitor risk and asset value.

This was an ideal opportunity for the bank to derive a single source of truth for transaction, bid and property information across an entire global portfolio.

JLL Risk Analytics addresses the challenges faced in identifying and monitoring risk within property portfolios. It’s proprietary technology, powered by artificial intelligence and machine learning, provides automated valuation modelling, environmental social governance (ESG) risk metrics, market momentum and liquidity analysis. This comprehensive approach helps assess critical factors such as market performance, pricing and sustainability, enabling clients to quantify the impact of these risks on asset values.

Its suite of Risk Analytics technology applications captures millions of data points from 300+ proprietary owned and third-party data sources and key markets worldwide. This empowers JLL’s global clients to identify and monitor real estate risk, predict value shifts, and capitalise on new investment opportunities.

JLL’s international banking client had several goals in mind when searching for a solution. It wanted to address not only environmental sustainability factors and prepare for EU reporting requirements, but also monitor the risk and value of its assets to support better informed and predictable investment decisions. In this case, the bank c was able to leverage JLL’s applications to identify underperforming assets within the portfolio and address assets of potential concern. The information uncovered through the process allowed the bank to mitigate future and current risk and create a competitive advantage, whilst also meeting the reporting standards set by the ECB.

As climate risk assessments become a standard component of real estate portfolio maintenance, companies are increasingly looking for opportunities to streamline the process and reduce costs. Like this global bank found, data, risk analytics and automation are achieving that goal, providing a faster, more affordable and more accurate opportunity to evaluate an asset.

Now, this JLL client is equipped to see a brighter way forward as it explores expanding the service to its global CRE loan book.