By

Vegard Blauenfeldt Naess

-

Aug 12, 2025

Why Climate Risk is a CFO Issue

Learn why climate risk isn’t just about sustainability - it’s about financial exposure, insurance costs, and portfolio value.

Climate Risk Isn’t Tomorrow’s Problem - It’s Already on Your Balance Sheet

In real estate, climate risk has moved from abstract headlines to concrete financial exposure.

Imagine a commercial building in Oslo. Two floods in three years. Insurance premiums spike. Tenants leave. The asset, once a prime investment, is now flagged by lenders.

This isn’t a one-off. Climate risk is now a direct threat to portfolio value. If you're a CFO, you’re already carrying that risk - whether your dashboard shows it or not.

The Hidden Costs You Might Be Missing

  • Energy-inefficient buildings lead to escalating utility costs which increases tenant risk as they need factor this into their operational expenses, link.

  • Properties in high-risk zones are increasingly suffering rising insurance premiums or loss of coverage, link.

  • Non-compliance with EU regulations limits access to green financing, link.

Investors Are Already Discounting Risky Portfolios

  • Funds apply climate risk discounts to valuations, link.

  • Lenders scrutinize ESG-alignment during portfolio reviews, link.

  • Real estate assessors are starting to differentiate asset values based on ESG KPIs, link.

Why Now? Regulations & Risk Converge

  • CSRD and EU Taxonomy mandate asset-level disclosures.

  • Stranded asset risk can devalue properties overnight.

  • Insurers are exiting high-risk zones, creating exposure gaps.

How Telescope Helps CFOs Take Control

  • Address-level risk scores (physical, transition, biodiversity).

  • Asset modeling to forecast retrofit ROI.

  • CSRD-aligned reports, ready for stakeholders.

  • Provide a better understanding of current and future portfolio risks.

Client Insight: Reitan Eiendom evaluated their entire portfolio in one month using Telescope - way faster than traditional consultancy timelines.

Worried about hidden liabilities on your balance sheet?

You know what to do!