“The investment of climate labels: How climate labels may influence real estate investment behaviour”
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2025-07-26
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en
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As climate change accelerates, the frequency and severity of extreme weather events pose significant risks to properties. The absence of standardised measures to communicate climate resilience of real estate creates uncertainty for stakeholders, including developers, investors, and municipalities. A recent study by multiple researchers of Dutch banks, asserted that a Climate Risk Resilience Label (CRRL) could better reflect climate-related risks in property value. They advised stakeholders to jointly develop standardised climate risk information for existing housing stock (Bani et al., 2024). The research aimed to provide a holistic perspective of the CRRL’s capacity to impact decision-making in investment behaviour, by utilising a tailor-made game experiment. The empirical results revealed that developers, municipalities and investors adjusted their decision-making processes based on the perceived implications of the CRRL, with variations observed between different stakeholder groups. The study also highlighted the importance of institutional frameworks in shaping these behaviours. The research concluded that the findings indicate that the CRRL has the potential to enhance market transparency and improve climate resilience in real estate development, suggesting a shift towards more informed and responsible decision-making for a resilient real estate market.
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Faculteit der Managementwetenschappen