Originally posted on LinkedIn by Demand Logic Chairman, Sonny Masero
Property value at risk from climate change - should this financial risk be disclosed under the new guidelines from the Task Force on Climate-related Financial Disclosure (TCFD)?
At Demand Logic we have seen a clear correlation between our Productivity KPI (shown by the people icon in the image above) and extreme temperatures in offices. If the score is below 99% that shows there is at least one space operating continuously at a temperature above 30 degrees (the proposed legal limit) or below 16 degrees + a significant proportion of other spaces operating at unproductive temperatures.
You can see in this collection of properties that is 2 out of 4. If a legal limit was introduced then what would be the cost of closure for an office in central London? Even if this is not a legal requirement, there is plenty of evidence to show that productivity falls and absenteeism increases in these weather conditions, which also has a cost.
Being able to see the comfort levels in a property is one way of using Demand Logic, but we combine that with a view of HVAC systems & building responsiveness so that we can also show how comfort can be improved and what capacity there is in the property to deal with higher temperature so that this financial risk can be managed.