Solution Integrate sustainability intelligence (including physical climate risk screening, regulatory/market analysis, and capex planning) into investment committee underwriting and asset management, and create asset-specific adaptation plans when risks exceed thresholds to protect long-term value and liquidity. Key challenge Climate-related physical risks and evolving regulations can create uncompensated costs and threaten long-term asset value and liquidity if not identified, priced, and mitigated during underwriting and ownership. Context Hines uses “investment intelligence” to support sustainable value creation across the real estate lifecycle from deal origination through asset management and exit. Its investment committee (IC) process includes a dedicated sustainability section in IC memos that assesses financially material factors such as physical climate and extreme weather risk, energy and carbon intensity, CRREM misalignment year, local regulatory context, capex plans for efficiency/sustainability improvements, and green building certification gaps. Hines also engages externally with peers and public-sector actors, including participation in OECD working sessions on place-based risks in real estate investment. Solution in practice Hines completes climate risk assessments for all new acquisitions and applies a screening threshold to flag high-risk assets during IC due diligence. If a property exceeds the threshold, asset teams evaluate and confirm municipal- and asset-level adaptation measures and develop a physical climate risk management plan intended to reduce potential impacts and support long-term resilience. In 2025, three assets (one in each of the Americas, Asia, and Europe) were initially flagged as high-risk; by creating a physical climate risk management plan for each, Hines lowered the risk to an acceptable level and proceeded with the purchases. Ongoing decision-making is supported by third-party data providers that monitor trends such as extreme weather hazards, building performance requirements, sustainable finance/disclosure policies, and tenant demand for green buildings, informing acquisition, capex planning, and scenario-based performance evaluation. Impact / outcome Three assets flagged high-risk in 2025 were brought to acceptable risk through climate risk management plans and acquired. Next steps Build shared approaches for assessing, pricing, and managing place-based climate risks across the real asset ecosystem by strengthening collaboration among governments, investors, banks, insurers, developers, and individuals, and by advancing common policy and climate objectives that enable a more resilient and sustainable real asset market. Organizations involved Authoring: Hines Implementation partners Data Providers; Regulators & Policymakers; Asset Owners & Managers