Use case: construction and real estate

Assessing climate risk for properties and assets

Satellite data show where floods, fires and ground movement have occurred and what the terrain around an asset looks like. Combined with official hazard maps, they help rate the exposure of each property to flooding, wildfire and subsidence. Climate projections add how these hazards may change over the lifetime of the asset; past images alone cannot show that.

Reference
UC-18
Technologies
  • Earth observation
Challenge
Flooding and natural hazards
Updated
Published by
LETO SPACE

01When you need it

Why it matters

Buildings, bridges, railway lines and other infrastructure have a long life cycle, generally several decades, so most types are strongly exposed to the negative impacts of climate change. More intense heat waves, droughts, storms and floods put their structural health, and in some cases the continuity of operations, at risk Source: EU Agency for the Space Programme (EUSPA), 2024EU Agency for the Space Programme (EUSPA)EUSPA EO and GNSS Market Report, Issue 2, 20242024Open source (opens euspa.europa.eu).

Owners, investors and insurers therefore need to know which assets are exposed to which hazard. Insurers use Earth observation in risk modelling, to predict weather events and their severity Source: EU Agency for the Space Programme (EUSPA), 26 May 2026EU Agency for the Space Programme (EUSPA)EU Space Market Report 2026, Issue 126 May 2026Open source (opens euspa.europa.eu), and ESA lists climate risk assessment and natural hazard modelling for flood, drought and wind among the applications for finance and insurance Source: European Space Agency (ESA), ESA Space Solutions, accessed 6 October 2026European Space Agency (ESA), ESA Space SolutionsESA Space Solutions: Space for finance and insuranceaccessed 6 October 2026Open source (opens business.esa.int).

Regulation asks for the same assessment in some cases. For activities assessed under the EU Taxonomy, the Climate Delegated Act sets out a climate risk and vulnerability assessment: screen which physical climate risks may affect the activity, assess how material they are, and assess solutions that reduce them Source: European Union, EUR-Lex, 4 June 2021European Union, EUR-LexCommission Delegated Regulation (EU) 2021/2139 (EU Taxonomy Climate Delegated Act), Appendix A: generic criteria for DNSH to climate change adaptation4 June 2021Open source (opens eur-lex.europa.eu). Its list of hazards includes floods, wildfire, heat waves, drought, storms, landslides and subsidence Source: European Union, EUR-Lex, 4 June 2021European Union, EUR-LexCommission Delegated Regulation (EU) 2021/2139 (EU Taxonomy Climate Delegated Act), Appendix A: generic criteria for DNSH to climate change adaptation4 June 2021Open source (opens eur-lex.europa.eu).

02Data

Which data and satellites

HazardDataService
FloodingFlood extent from Sentinel-1 radar images, archive from 2015Global Flood Monitoring
FloodingFlood hazard maps with extent and water depth for several probabilitiesAuthorities under the EU Floods Directive
WildfireNear real-time and historical information on forest firesEFFIS, Copernicus Emergency Management Service
Subsidence and landslidesGround motion measured by radarEuropean Ground Motion Service
TerrainElevation model, 30 m worldwideCopernicus DEM
Future climateInformation on the past, present and future climate, in Europe and worldwideCopernicus Climate Change Service

Sources: Global Flood Monitoring Source: IEEE JSTARS, Krullikowski et al., IEEE Journal of Selected Topics in Applied Earth Observations and Remote Sensing, vol. 16, pp. 6917-6930, 2023Krullikowski et al., IEEE Journal of Selected Topics in Applied Earth Observations and Remote Sensing, vol. 16, pp. 6917-6930Estimating Ensemble Likelihoods for the Sentinel-1-Based Global Flood Monitoring Product of the Copernicus Emergency Management Service2023Open source (opens doi.org), EU Floods Directive Source: European Union, EUR-Lex, 23 October 2007European Union, EUR-LexDirective 2007/60/EC of the European Parliament and of the Council of 23 October 2007 on the assessment and management of flood risks23 October 2007Open source (opens eur-lex.europa.eu), EFFIS Source: Copernicus EMS, Copernicus Emergency Management Service, European Commission, accessed 6 October 2026Copernicus Emergency Management Service, European CommissionAbout EFFIS (European Forest Fire Information System)accessed 6 October 2026Open source (opens forest-fire.emergency.copernicus.eu), European Ground Motion Service Source: European Space Agency (ESA), 26 July 2022European Space Agency (ESA)Tap into Europe in motion (European Ground Motion Service)26 July 2022Open source (opens esa.int), Copernicus DEM Source: Copernicus Data Space Ecosystem, accessed 6 October 2026Copernicus Data Space EcosystemCopernicus DEM: Global and European Digital Elevation Modelaccessed 6 October 2026Open source (opens dataspace.copernicus.eu), Copernicus Climate Change Service Source: Copernicus Climate Change Service (C3S), ECMWF, accessed 6 October 2026Copernicus Climate Change Service (C3S), ECMWFCopernicus Climate Change Service: About usaccessed 6 October 2026Open source (opens climate.copernicus.eu).

Earth observation provides historical data on ground deformation, floods, droughts and fires and long time series that reveal trends, which help assess how vulnerable sites are to natural hazards Source: EU Agency for the Space Programme (EUSPA), 26 May 2026EU Agency for the Space Programme (EUSPA)EU Space Market Report 2026, Issue 126 May 2026Open source (opens euspa.europa.eu). How flood maps are made is explained in mapping flood risk; ground motion in monitoring ground motion with InSAR.

  • L1 Base mapTerrain, river and parcels
  • L2 Flood extentFlooded valley floor, up to the first contour line
  • L3 Exposed buildingsBuildings inside the flood extent
Illustrative map, not real data. Flood extent along a valley floor, with the buildings inside it marked as exposed.

03Technology

How the assessment works

  1. Locate the assets: every property or asset gets exact coordinates and an outline.
  2. Overlay the hazards: each hazard layer is intersected with each asset, for example whether a building lies inside a mapped flood extent.
  3. Rate the exposure: the results become a hazard class per asset and hazard.
  4. Add the future: climate projections show how each hazard may change over the expected lifetime of the asset. The EU Taxonomy asks for at least 10 to 30 year projections for major investments Source: European Union, EUR-Lex, 4 June 2021European Union, EUR-LexCommission Delegated Regulation (EU) 2021/2139 (EU Taxonomy Climate Delegated Act), Appendix A: generic criteria for DNSH to climate change adaptation4 June 2021Open source (opens eur-lex.europa.eu).
  5. Review: assets in high classes get a closer look, with site data and expert judgement.

04Deliverables

What you get

  • a hazard class per asset for each hazard, such as flooding, wildfire and subsidence
  • a portfolio map that shows where the exposed assets are
  • a list of assets that need a closer look on site
  • a documented basis for a climate risk and vulnerability assessment, with the data and projections used

05Limits

Limits

06Next steps

How we help

A climate risk rating is useful when it feeds a decision: an acquisition, an insurance premium, a maintenance plan or a report. In a strategy engagement we check which hazards and assets matter and which free data already answer the question. If you need a provider, we write the requirements and compare the offers.

More on requirements and procurement

The marketplace on Spacegraph, our discovery platform, has a use-case category for hazard and risk assessment and an industry category for real estate and property.

07Use cases

Frequently asked questions

Q1Which data do we need for a climate risk assessment of our properties?

The locations of your assets, and hazard data for each location: flood extent from radar archives such as the Global Flood Monitoring product, which goes back to 2015 Source: IEEE JSTARS, Krullikowski et al., IEEE Journal of Selected Topics in Applied Earth Observations and Remote Sensing, vol. 16, pp. 6917-6930, 2023Krullikowski et al., IEEE Journal of Selected Topics in Applied Earth Observations and Remote Sensing, vol. 16, pp. 6917-6930Estimating Ensemble Likelihoods for the Sentinel-1-Based Global Flood Monitoring Product of the Copernicus Emergency Management Service2023Open source (opens doi.org), official flood hazard maps Source: European Union, EUR-Lex, 23 October 2007European Union, EUR-LexDirective 2007/60/EC of the European Parliament and of the Council of 23 October 2007 on the assessment and management of flood risks23 October 2007Open source (opens eur-lex.europa.eu), fire records from EFFIS Source: Copernicus EMS, Copernicus Emergency Management Service, European Commission, accessed 6 October 2026Copernicus Emergency Management Service, European CommissionAbout EFFIS (European Forest Fire Information System)accessed 6 October 2026Open source (opens forest-fire.emergency.copernicus.eu), ground motion from the European Ground Motion Service Source: European Space Agency (ESA), 26 July 2022European Space Agency (ESA)Tap into Europe in motion (European Ground Motion Service)26 July 2022Open source (opens esa.int) and information on the future climate from the Copernicus Climate Change Service Source: Copernicus Climate Change Service (C3S), ECMWF, accessed 6 October 2026Copernicus Climate Change Service (C3S), ECMWFCopernicus Climate Change Service: About usaccessed 6 October 2026Open source (opens climate.copernicus.eu). The Copernicus services among them provide their data free of charge Source: European Union, EUR-Lex, 12 May 2021European Union, EUR-LexRegulation (EU) 2021/696 of 28 April 2021 establishing the Union Space Programme and the European Union Agency for the Space Programme12 May 2021Open source (opens eur-lex.europa.eu).

Q2Do satellite images show future climate risk?

No. Images record the past and the present. Historical satellite data on ground deformation, floods, droughts and fires help assess how vulnerable a site is to natural hazards Source: EU Agency for the Space Programme (EUSPA), 26 May 2026EU Agency for the Space Programme (EUSPA)EU Space Market Report 2026, Issue 126 May 2026Open source (opens euspa.europa.eu), but the future comes from climate projections. The EU Taxonomy, for example, asks for state-of-the-art projections across a range of scenarios for activities with an expected lifespan of ten years or more Source: European Union, EUR-Lex, 4 June 2021European Union, EUR-LexCommission Delegated Regulation (EU) 2021/2139 (EU Taxonomy Climate Delegated Act), Appendix A: generic criteria for DNSH to climate change adaptation4 June 2021Open source (opens eur-lex.europa.eu).

Q3How do we start?

Start with one hazard and one part of the portfolio, for example flooding for the properties in one region. Check the result against what you know about past events at those sites before you extend it. Our consulting overview shows the path from the problem to operation.

Sources (12)

  1. EU Agency for the Space Programme (EUSPA), 26 May 2026EU Space Market Report 2026, Issue 1 (opens euspa.europa.eu)
  2. EU Agency for the Space Programme (EUSPA), 2024EUSPA EO and GNSS Market Report, Issue 2, 2024 (opens euspa.europa.eu)
  3. European Union, EUR-Lex, 4 June 2021Commission Delegated Regulation (EU) 2021/2139 (EU Taxonomy Climate Delegated Act), Appendix A: generic criteria for DNSH to climate change adaptation (opens eur-lex.europa.eu)
  4. Krullikowski et al., IEEE Journal of Selected Topics in Applied Earth Observations and Remote Sensing, vol. 16, pp. 6917-6930, 2023Estimating Ensemble Likelihoods for the Sentinel-1-Based Global Flood Monitoring Product of the Copernicus Emergency Management Service (opens doi.org)
  5. European Union, EUR-Lex, 23 October 2007Directive 2007/60/EC of the European Parliament and of the Council of 23 October 2007 on the assessment and management of flood risks (opens eur-lex.europa.eu)
  6. Copernicus Emergency Management Service, European Commission, accessed 6 October 2026About EFFIS (European Forest Fire Information System) (opens forest-fire.emergency.copernicus.eu)
  7. European Space Agency (ESA), 26 July 2022Tap into Europe in motion (European Ground Motion Service) (opens esa.int)
  8. Copernicus Climate Change Service (C3S), ECMWF, accessed 6 October 2026Copernicus Climate Change Service: About us (opens climate.copernicus.eu)
  9. European Union, EUR-Lex, 12 May 2021Regulation (EU) 2021/696 of 28 April 2021 establishing the Union Space Programme and the European Union Agency for the Space Programme (opens eur-lex.europa.eu)
  10. Copernicus Data Space Ecosystem, accessed 6 October 2026Copernicus DEM: Global and European Digital Elevation Model (opens dataspace.copernicus.eu)
  11. UN-SPIDER (United Nations Office for Outer Space Affairs), accessed 6 October 2026Recommended Practice: Flood Mapping with Sentinel-1 and Sentinel-2 Imagery and Digital Terrain Models (opens un-spider.org)
  12. European Space Agency (ESA), ESA Space Solutions, accessed 6 October 2026ESA Space Solutions: Space for finance and insurance (opens business.esa.int)

Contact

Assessing climate risk for buildings and assets? Start with the hazards that matter for your portfolio.

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