Best practice: Healthpeak Properties disclosed their physical risk exposure on a risk- and sector- basis

Healthpeak Properties Inc.

Healthpeak is a US-based company with one hundred percent of its portfolio located in the United States. The fund operates close to 450 commercial assets catering to healthcare purposes. Development also plays a role in its portfolio, with 18 assets under development or redevelopment as of the end of 2023. With the recent acquisition of Physicians Realty Trust, as of the end of 2023, the fund operates around 750 properties.

Why it matters

Climate change is leading to more severe extreme weather events, presenting challenges to the resilience of our built environment. Incorporating climate-related risks into financial and organizational governance decisions requires physical hazard risk assessments. These assessments comprehend the risks an asset may encounter throughout its lifetime. From investors’ perspective, disclosing physical risk exposure signals that funds are aware of and in control of their physical climate risks, preventing investors from overestimating the physical risk exposure of funds’ portfolio.

Significant improvement of physical risk disclosure in 2022 – 2023 reporting period by Healthpeak

Amongst others, GREEN and its members engage with Healthpeak on an annual basis. In the latest ESG report 2022, we found valuable information regarding the exposure to physical risks of the portfolio. Healthpeak shared with us that these improvements were aspired by GREEN’s previous suggestions, namely:

• Key tool used to assess physical risks
• Key materialistic physical risks exposed by the portfolio
• Level of risk exposure to each physical risk by each type of property