HemeraScope Asset Management

Climate risk

EPC profile, MEES exposure and stranded-asset risk

Buildingsi

MEES-complianti

At riski

Transition horizoni

2027

What the numbers say

1 building below the proposed standard

Riverside Court holds an EPCEnergy Performance Certificate — a building's energy rating from A (best) to G, required to let or sell. D. Under MEESMinimum Energy Efficiency Standards — UK rules that bar letting commercial property below a minimum EPC rating; the threshold is tightening. it risks becoming a stranded assetA building that becomes unlettable or loses value because it cannot meet tightening energy regulation without costly retrofit. — unlettable without retrofit — before the 2027 horizon. That is a valuation question, not just a carbon one.

EPC profile

Building	EPC	MEES status
Pawston House	B	Compliant
Riverside Court	D	At risk — below proposed 2027 EPC C
The Old Exchange	A	Compliant

Stranded-asset risk

Riverside Court holds an EPC D — below the proposed 2027 minimum (EPC C) for commercial lettings. Flagged as a stranded-asset risk.

Physical risk

Climate X integration

Roadmap

Asset-level physical-risk scoring — flood, wind, heat stress and subsidence under 1.5°C / 2°C / 4°C scenarios out to 2050 — is on the integration roadmap via Climate X's Spectra API. Each Pawston building will carry a chronic + acute hazard profile alongside its transition-risk band, completing the TCFDTask Force on Climate-related Financial Disclosures — the climate-risk disclosure framework, now carried into the ISSB standards. physical-risk row.

Until then, physical risk on these three assets is qualitatively low — central UK locations, no coastal exposure, no listed flood-zone-3 designation.

Transition risk (TCFD)

Under a 1.5°C transition pathway, buildings below EPC C face rising re-letting risk, retrofit capital calls and tightening lender criteria. The footprint and uncertainty band on each asset feed the fund's TCFD climate-risk disclosure directly — physical and transition risk assessed on the same audited numbers, not a separate exercise.