Market demand shifts
Demand within the market
and among our occupiers for low carbon, climate
resilient assets could lead to a green premium for
high-performing assets or, conversely, a brown
discount for assets that do not meet contemporary
standards. Shifts in market dynamics could also
create difficulties for our occupiers.
- Impacts on asset valuations and rental values
- Increased cost of financial capital
- Occupier default risk
Energy transition
As the shift away from fossil fuels
to renewable energy accelerates, and uptake and
demand for low-carbon technologies increase,
energy inefficient or fossil fuel-powered assets
could fall into underperformance. Carbon taxation
and increased energy demand could increase
assets’ operating costs.
- Increased cost of energy; costs of carbon taxation
- Impacts on asset values and rental values for inefficient assets
- Potential to miss opportunities to harness government subsidy mechanisms
Regulation and policy
To meet its 2050 net zero carbon target, and to begin embedding climate
adaptation into the economy, we expect the Irish
Government to enhance climate policy in the coming
years, partly by targeting the built environment.
- Fines, void periods or reputational damage
from non-compliance
- Capital cost to meet new standards
Supply chain disruption
Our business and our
occupiers are reliant on global supply chains.
Both the decarbonisation transition and physical
climate impacts could disrupt our ability to
operate efficiently
- Business interruptions; loss of income
- Increased development costs; delayed
development timelines
- Occupier default risk