GeoSmart assesses flood risk across RLAM’s £7 billion portfolio
As climate change intensifies and regulation tightens, understanding and managing environmental risk has become a critical priority for asset managers. In response to these growing challenges, Royal London Asset Management (RLAM) commissioned GeoSmart Information to assess flood risk across more than 200 high-value commercial properties, with a combined value of over £7 billion.
Flooding is the UK’s most significant climate-related threat, and its financial implications for real estate are substantial. Severe flooding can reduce property values by up to 30%, while insurers are increasingly cautious, with some indicating cover may not be available in the future for high-risk sites.
Alongside these direct risks, asset managers face mounting pressure to disclose material climate risks in line with evolving regulatory frameworks. The Association of Real Estate Funds (AREF) has urged investors to evaluate flood risk as part of their environmental due diligence, especially as extreme weather becomes more frequent and intense.
Against this backdrop, RLAM partnered with GeoSmart to proactively evaluate and manage risk across its diversified portfolio.
A data-driven, strategic approach
GeoSmart’s assessment began with a full digital mapping and verification of each asset boundary, followed by an initial flood risk screening for all properties using our FloodSmart Analytics platform.
Each site was assigned a flood risk score based on potential exposure to river, coastal, surface water (pluvial), and groundwater flooding. Risk was assessed both under current conditions and projected future scenarios.
The findings were presented in a summary dashboard, offering RLAM a portfolio-wide view of risk, with the ability to drill down to individual property-level data. This enabled clear benchmarking, prioritisation of follow-up actions, and improved integration of risk data into RLAM’s internal asset management systems.
Translating hazard into financial impact
Flood hazard data was converted into potential cost impacts using standardised benchmarks. This allowed RLAM to understand not just where flood risks exist, but how they might translate into real-world financial exposure, supporting cost-benefit analysis and early-stage mitigation planning.
Detailed screening reports were produced for each site, including high-resolution flood maps, estimated damage costs, and insights into the presence of flood defences or reliance on future upgrades.
In cases where a deeper understanding was needed, selected sites underwent further detailed assessment, including site visits, layout reviews, and consultation with facilities managers.
Resilience through insight
By partnering with GeoSmart, RLAM has taken a proactive, strategic step in understanding and managing flood risk. The insights gained are now supporting:
- Protection of property value and liquidity;
- Portfolio-wide risk management and resilience;
- Enhanced insurability and insurance negotiations;
- Compliance with climate disclosure frameworks;
- Greater confidence for investors and stakeholders and;
- Improved due diligence for acquisitions and developments.
With climate change likely to increase both the frequency and severity of flood events, asset managers must stress test their portfolios and make informed, risk-based decisions.
GeoSmart’s expertise and high-resolution data tools help forward-thinking organisations like RLAM stay ahead, protecting long-term value and building more resilient investment strategies.
Want to see the full picture?
Download the complete case study to explore key findings, portfolio insights, and how RLAM used GeoSmart’s flood risk data to inform investment decisions, meet ESG obligations, and future-proof over £7 billion in assets.
Download RLAM Case Study
