A recent article appearing in the Property Professional Magazine (Garner, G. O., & Kuczynska, P. Climate Change: A Challenge for Valuers? Autumn 2022 edition), highlights the swiftly emerging issues around climate change - being one most people would agree is increasingly commanding the attention of regulators, the media, environmentalists and the general public. Equally, it is an evolving matter demanding earnest consideration by New Zealand businesses.

The aforementioned article reveals that following the 2021 United Nations COP26 Climate Change Conference, a recent Knight Frank report points out that almost every country on earth is now working to tackle climate change. Moreover, this report looks specifically at how the world of real estate is adapting, and how the property market might look in the future.

The challenge for valuers

The chaos and devastation of climate change (whatever the cause or reason) being experienced in many parts of the world, including New Zealand, is both saddening and very sobering. However, the positive news is that the valuation profession is in an excellent position to help in the assessment of risk and impact, assisting property stakeholders in the mitigation of its potential impact.

Many valuers are currently extremely busy just coping with client demand, which for many is at an all-time high. Just keeping pace with that is probably proving quite a challenge for many firms. However, our profession is cyclical, and this situation is unlikely to last. Therefore, forward-thinking risk averse valuers may be appropriately challenged to think about ways they could
become involved in climate risk reporting as a potentially new, exciting avenue (with new economic opportunities) for their business into the future.

Resources

We are complying a list of valuable resources for valuers as a start to help guide you through the minefield that involves climate change risk reporting.

Please note all information and resources provided here are subject to review and can be changed by guidance papers coming available through the Property Valuation and Standards Board.

Next review is due January 2023.


Useful Websites

Energy Efficient Buildings

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