Castellum climate adapts properties
Chief Sustainability Officer for Castellum
All of society is affected by the climate crisis. The property industry faces particularly severe challenges brought about by climate change in the future, for example, torrential rains could lead to flooding that can destroy buildings. Heat waves can also cause fires, and ground settling could lead to landslips and landslides that could damage buildings. The risk of damage can be reduced, however. Castellum shows the way.
In the autumn of 2022, Castellum conducted a climate risk analysis of its entire property portfolio in Sweden, Denmark, and Finland to identify which properties run the greatest risk of being impacted by climate change. The analysis showed that 7 per cent of the portfolio’s value is more exposed. The next step in the process is to conduct more detailed analyses of the properties concerned, and take the steps required to make them climate-proof.
Castellum prepares for the worst
Castellum regards its climate-proofing initiatives as absolutely necessary for its future profitability. You could say that Castellum is hoping for the best but preparing for the worst. Classic risk control, in other words. At any rate, this is what Filip Elland, Chief Sustainability Officer at Castellum, argues. He says that success will require all of society to join the journey of climate-proofing – and that there is a long way to go. Even if there has been much positive progress by government authorities, including initiatives at the EU level, Filip Elland demands more specific action.
One example of how Castellum is climate-proofing its properties is the newly constructed Emigranten office building in central Gothenburg. It is only a stone’s throw from the Masthuggskajen district and the Göta river, at a location that was an area in the harbour for storing mast lumber for the navy in the early 1600s. A highly attractive location, but one that is exposed to weather and wind. By installing water alarms connected to the distribution board on the property, the building has been made more climate-proof. The hope is that defences will be built on the river to prevent future flooding.
Finances and sustainability go hand in hand
By climate-proofing the property portfolio, as Castellum is doing, the properties can also become more energy-efficient and be classified as green under the EU Taxonomy Regulation. This could result in lower costs of borrowing. Properties that are better adapted to a changed climate also have a higher market value since the risk of damage from climate change decreases. Climate-proofing of properties is an excellent example of where finances and sustainability are both pulling in the same direction. If it is good for finances, it is good for the environment and the climate as well.