The Portuguese Securities Commission (CMVM) published its Annual Report on the Capital Market Exposure to Climate Risk, focusing on selected physical climate risks affecting alternative investment funds (AIFs) invested in Portuguese real estate assets and issuers included in the PSI index. For real estate AIFs, identified vulnerabilities differ by property use and location, while overall average risk is assessed as low. The report finds the highest exposure relates to wildfires and water stress, reflecting the geographic concentration of properties in areas with higher probabilities of such events, and points to the relevance of national or local mitigation measures. For PSI index issuers, physical risks linked to rising temperatures, particularly wildfires, stand out, with qualitative impacts including potential disruption to business activities and damage to assets from extreme weather events; reducing greenhouse gas emissions is highlighted as the main commitment reported by these entities. CMVM positions the report as a contribution to understanding and managing climate risk exposure and notes that the report’s contents are available in Portuguese only.

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