Climate Risk in Real Estate: How to Protect Your Portfolio

Extreme weather events are putting real estate assets at greater risk each year. Over 4 million homes in the U.S. already face significant flood danger, and climate risks like fire, rising sea levels, and regulatory changes threaten property values and annual returns across your portfolio. ¹ Many investors still underestimate these threats or struggle to find reliable answers about how to measure and manage climate risk in real estate. This article compiles practical strategies that use modern tools such as predictive hazard models and detailed risk assessments to keep your investments resilient. ³

With years of experience guiding asset managers through shifts in environmental, social, and governance (ESG) standards, I have seen first-hand how smart planning protects both capital and communities from climate change impacts.

Recent advances in data analytics give you a competitive edge against transition risks like insurance gaps or costly repairs. ² Read on to discover steps you can take now to secure your properties for the future.

Key Takeaways

• Over 4 million U.S. homes already face high flood risk, and about 4.5 million are exposed to wildfire dangers (First Street Foundation, Verisk Analytics). Insurance is often missing—only 2.3% of Kentucky homes damaged by flooding in July 2022 had federal protection.
• Physical climate risks like floods, wildfires, and hurricanes can sharply drop property values; annual losses for at-risk homes could jump from $4,694 to $7,563 by 2051.
• Transition risks are rising as governments set stricter rules (MEPS/EPCs) and insurance companies raise premiums or limit coverage. MISMO issued a new Flood Risk Disclosure Guide for lenders in February 2023.
• Use tools like FEMA’s National Risk Index, Copernicus Climate Data Store Toolbox, Jupiter Intelligence, and Google Earth Engine to assess fire or flood threat before buying or insuring real estate.
• Diversify your portfolio across locations and invest in resilient properties with clean energy upgrades; green building investments could reach $24.7 trillion globally by 2030 (IEA). Tax credits under the Inflation Reduction Act help offset costs for upgrades that protect value against extreme weather events.

Understanding Climate Risks in Real Estate

Climate risk impacts your assets through both immediate threats and long-term changes in regulation. Use climate data and advanced risk analysis tools to improve your investment decisions and safeguard property values.

Physical risks: floods, wildfires, hurricanes

Extreme weather events due to climate change now pose serious threats to real estate assets. Floods, wildfires, and hurricanes can reduce property values, disrupt leases, and raise insurance costs for investors.

1. Flood risk affects both residential and commercial properties, with about 4.3 million U.S. homes facing significant exposure according to the First Street Foundation’s 2021 report.
2. Substantial flood risk properties may see average yearly losses jump from $4,694 to $7,563 by 2051, raising your capital expenditures and threatening your return on investment.
3. Government flood insurance coverage remains limited; only 2.3% of homes damaged in Kentucky's July 2022 floods had protection through the National Flood Insurance Program.
4. Standard homeowner’s insurance or lease agreements rarely cover water damage from floodwaters or storm surges, leaving you vulnerable.
5. About 40% of NFIP claims come from so-called “low-risk” areas; even properties outside FEMA's designated zones face urgent physical climate risks.
6. During Hurricane Harvey in 2017, many homes outside official danger zones flooded, revealing that risk analysis using up-to-date climate data is vital for portfolio management.
7. Wildfire threat is also severe; Verisk Analytics reports about 4.5 million homes in the U.S. face high or extreme fire risk tied to shifting weather patterns and global emissions.
8. High fire risk can drive up homeowner’s insurance premiums or leave some buildings uninsurable as coverage options shrink with increased claims.
9. Hurricanes intensify asset price volatility by inflicting massive repair costs and business interruption losses during each landfall along coastal regions.
10. Physical damages caused by events such as Hurricane Ida or Katrina reduce marketability for tenants and may result in overvalued assets post-disaster if you lack a robust risk-management strategy.
11. Advanced tools like predictive hazard models from platforms such as FM Global allow you to use macro- and microeconomic data to improve your decision-making process before acquiring a site prone to these hazards.
12. Prioritizing resilient property designs that include energy efficiency upgrades (solar arrays, better insulation) helps adapt buildings for sustained returns despite changing climate conditions.

Incorporating this knowledge into your investment management processes allows you to address severe climate risks while protecting long-term property valuation and tenant safety.

Transition risks: regulatory changes, insurance challenges

Transition risks can change the value and future of your real estate portfolio. As new rules and insurance issues increase, you must make informed choices to protect your investments.

1. Regulatory changes are shaping how you operate as a real-estate investor. Governments now set stricter energy performance standards, such as Minimum Energy Performance Standards (MEPS) and Energy Performance Certificates (EPCs), to push properties toward net-zero carbon targets. ¹
2. Global decarbonization efforts are speeding up. As more countries adopt policies in line with the Paris Agreement, compliance costs rise, directly impacting asset prices and green building values. ¹
3. New regulatory requirements demand upgrades to meet climate goals. Failing to act can result in higher operating costs or fines that hurt your property’s earnings.
4. These transition risks affect lender covenants. Financial institutions may require higher insurance coverage or tighter terms before providing loans, making it harder for you to secure capital at favorable rates.
5. Insurance companies face mounting claims from physical climate risks like wildfires, floods, hurricanes, and extreme heat events; this causes premiums to soar and limits coverage options for property owners. ²
6. The rising price of homeowner’s insurance impacts capitalization rates by increasing expenses and reducing your net returns from each asset.
7. Industry leaders like MISMO responded in February 2023 by issuing a Flood Risk Disclosure Guide for lenders, highlighting the need for more transparent risk management tools tied to global climate change impacts. ²
8. Insurers now use advanced climate data analytics platforms for risk assessment; these platforms help forecast losses linked to physical hazards as regulations evolve.
9. Rapidly rising premiums push investors toward alternative risk transfer methods such as catastrophe bonds or parametric insurance products tailored for sustainable buildings exposed to fire risk or flooding due to global emissions shifts.
10. Meeting new compliance targets often requires retrofitting assets with clean tech installations—such as batteries or upgraded air conditioning—to address carbon footprints while maintaining tenancy appeal and complying with international energy agency benchmarks.

Proactively adapting your portfolio through these responses helps achieve long-term stability amid ongoing climate changes, shifting economics, and advancing decarbonizes goals shaped by evolving regulatory frameworks worldwide.

Impact of Climate Risks on Real Estate Portfolios

Extreme weather events and fire risk can lower property values and put pressure on landlords. Insurance companies may set higher premiums or limit homeowner coverage as climate data reveals more climate change risks to real estate investments.

Decreased property values

Properties exposed to physical climate risks, like floods and wildfires, often lose market value quickly. Homes in FEMA-designated high-risk flood zones must carry flood insurance through the National Flood Insurance Program if you have a mortgage.

Rising insurance costs caused by extreme weather events can discourage buyers or even prevent sales. Projected annual losses for homes facing substantial flood risk are set to increase more than 60% between now and 2051, jumping from $4,694 to $7,563 each year.

Climate change poses financial burdens that affect long-term property values. Buyers shy away from assets with severe climate risk if securing homeowners insurance becomes difficult or expensive.

Increased maintenance needs also reduce your profits over time and may drive appraisal values lower. New regulatory changes tied to transition risks and carbon tax measures can put further downward pressure on resale prices as potential owners factor in higher ongoing expenses.

Using detailed climate data helps you address these challenges before they impact your real estate portfolio’s worth.

Increased maintenance and repair costs

Extreme weather events linked to climate change drive up costs for repairs and maintenance. Real estate in flood-prone zones, especially coastal regions such as Florida, faces repeated damages.

Insurance companies continue to increase premiums or restrict coverage, which makes budgeting even tougher. Homeowners often learn that major websites do not disclose flood damage history; this leads to unforeseen expenses during ownership.

You will notice higher bills if your real estate is exposed to wildfire or fire risk areas. Flooding causes not only direct repair needs but also long-term issues like mold and weakened structures.

In my experience managing a portfolio in high-risk markets, you must prepare for both sudden events and ongoing impacts on property conditions. Using regular climate risk assessments protects your investments from unexpected spending spikes due to the growing impact of climate risks and stricter compliance standards.

Taking steps toward resilient property design helps control these rising costs over time. Green buildings equipped with energy-efficient systems lower both utility fees and future repair bills by reducing strain on key infrastructure during disasters tied to global emissions.

Tools such as real-time monitoring platforms provide vital climate data so you can address urgent issues before they spiral, helping manage the true costs and benefits of adaptation efforts in response to increases in carbon price or oil price volatility impacting insurance claims across your assets.

Challenges in securing insurance

Properties exposed to physical climate risks like floods and wildfires often face major insurance hurdles. Standard homeowners or renters insurance policies do not cover flood damage.

After Hurricane Harvey, many homes outside the FEMA flood zones lacked any protection, leaving owners unprepared for losses. If your properties fall into high-risk areas due to climate change impacts or global emissions increases, you may find insurers unwilling to offer coverage altogether.

Insurers rely on updated climate data and advanced analytics tools such as risk assessment platforms from UNEP FI partners. They use predictive hazard models that crunch vast amounts of climate risk information before providing quotes.

An insurer may reject a property outright if their systems flag severe fire risk or repeated flooding events linked to changes in energy production and greenhouse gas emissions.

You can expect rising premiums as companies attempt to keep up with more frequent extreme weather events tied directly to decarbonizing efforts worldwide. Higher costs and limited options deter buyers, stall transactions, and shrink real estate values wherever coverage is hard to secure.

Your portfolio demands constant attention since regulatory shifts may further restrict access or increase marginal abatement cost requirements for insuring certain assets. Protecting your investments means staying ahead through better adaptation strategies while using reliable platforms for real-time updates on both physical and transition risks affecting insurance availability in exposed regions.

Key Strategies to Protect Your Real Estate Portfolio

You can use climate data platforms and risk analytics to strengthen your investment decisions. Smart adaptations help you stay ahead of changes in insurance company requirements and policies.

Conducting detailed climate risk assessments

Assessing climate risk is a vital step for every real estate investor and professional. Strong risk assessment helps protect assets from rising physical and transition risks due to global climate change.

• Use FEMA’s National Risk Index to identify threats like floods, hurricanes, or fire risk at any property. This index collects data nationwide and shows how severe specific climate risks may be in different regions.
• Check your state’s legal requirements for disclosing past flooding or other damage before purchasing or selling real estate. Many states now require property owners to share this information with buyers and renters.
• Review the Risk Factor tool to get insights on likely extreme weather events, wildfire probabilities, or flood chances at both the building and community level.
• Calculate probable costs of climate impacts using forward-looking climate data; focus on possible repair bills, increased insurance premiums, or future maintenance expenses.
• Assess whether you can secure adequate insurance coverage through a reliable insurance company. For example, many homes with high flood exposure have seen costs rise as much as 30 percent in some states over the last five years.
• Factor in regional changes in GDP that might follow more frequent responses to climate change such as new regulations or stricter zoning tied to local adaptation plans.
• Interview experts who use predictive hazard models and real-time monitoring tools to evaluate current risks and forecast trends across your portfolio.
• Consult with an environmental engineer who can explain how local emissions targets or transition rules could affect long-term value, especially near cities aiming for net zero emissions by 2050.
• Build a checklist that includes reviewing marginal abatement cost curves for each location; this step shows how expensive it will be to lower carbon emissions tied to each asset you hold.
• Prioritize sites where access to clean energy is growing along with investments in energy-efficient upgrades such as solar panels, backup batteries that store energy during outages, or weather-resistant materials.

Rely on these steps from my personal experience advising investors during major hurricane seasons to mitigate losses and seize opportunities that address climate change directly through smart portfolio management.

Diversifying real estate investments

Spread your real estate holdings across various regions, asset classes, and risk zones to limit the fallout from extreme weather events or shifting climate risks. Invest in both commercial and residential properties located outside areas with high flood risk or fire risk.

Add sustainable buildings to your portfolio as these assets offer greater resilience against physical climate risks and can attract tenants focused on energy efficiency. According to recent projections, investing in green buildings could unlock a USD 24.7 trillion opportunity in emerging markets by 2030.

Consider sector diversification as well; balance traditional offices with logistics centers or retail outlets resilient to climate change impacts. Take advantage of financial tools like green mortgages, which are gaining traction fast—their market valuation is set to rise from USD 181.2 billion this year to USD 536.6 billion by 2033.

Use creative insurance coverage strategies including policies with multiple insurers or self-insuring some assets if possible; this approach can help you manage gaps caused by rising premiums or tighter policy requirements due to global emissions targets.

Leverage advanced climate data platforms for informed decision-making before acquiring new investments. These predictive hazard models support smarter placement of capital away from potential real estate bubble zones influenced by increased impacts of climate change regulations or transition risks imposed on heavy emitters within local governments’ jurisdictions.

This multi-pronged approach helps protect your portfolio’s long-term value while contributing positively toward broader climate finance goals and adaptation efforts.

Prioritizing resilient property designs

Resilient property designs can help you reduce your exposure to climate risks and extreme weather events. Upgrade insulation, install solar panels, and use energy-efficient systems to lower utility costs while meeting Minimum Energy Performance Standards (MEPS).

The 2022 Inflation Reduction Act offers tax credits that offset the expense of these improvements. Take advantage of programs from the Department of Energy that support retrofits for fire risk mitigation in wildfire zones.

Focus on placing mechanical equipment above flood levels and using impact-resistant roofing materials. Consider designing landscapes that manage stormwater runoff; this approach minimizes physical risks like floods and hurricanes.

Rely on climate data platforms such as ClimateAI or Jupiter Intelligence to identify the best design strategies based on local hazards tied to global emissions trends.

Choose building materials proven to withstand heatwaves, wildfires, or heavy rain driven by climate change. Adapt your properties now so you stay ahead of regulatory changes targeting emission reductions.

These resilient upgrades make it easier to insure properties despite rising premiums linked to physical climate risks and insurance challenges throughout the market.

Leveraging climate risk analytics tools

Tools like the Copernicus Climate Data Store Toolbox and Google Earth Engine help you analyze climate risk in real estate. ³ These platforms provide access to large climate data sets, satellite visuals, and predictive hazard models.

Using these tools lets you assess fire risk, flood threat, and other extreme weather events that threaten property values or insurance options. Integrating natural language processing with geospatial technology expands your ability to review adaptation datasets for target regions.

Building robust in-house technical skills ensures you get the most from advanced analytics. Strong data systems support faster decisions about where global emissions or physical climate risks may reduce value. ³ You can visualize future exposure to transition risks using specialized software. This gives you a clear path toward protecting investments while meeting new climate change regulations or adapting to evolving market demands for more energy efficient buildings.

In my own work, leveraging these resources has reduced uncertainty when investing in vulnerable areas.

Role of Data and Technology in Managing Climate Risks

You can use satellite imagery and machine learning to spot fire risk or flood zones before investing. Climate risk assessment platforms like Jupiter Intelligence offer real-time climate data to help you safeguard your assets against extreme weather events.

Predictive hazard models

Predictive hazard models use climate data and asset exposure information to forecast risks such as floods, fire risk, or hurricanes across your real estate portfolio. These tools combine physical climate risk data with details about local hazards and the specific attributes of each property.

The Network for Greening the Financial System (NGFS) highlights their value in assessing economic stability by using forward-looking climate event scenarios.

Rely on advanced analytics platforms that update as new global emissions targets shift or as regulators introduce new rules. Accurate results depend on strong asset-level exposure details.

Many developing regions still lack this vital data, which limits full risk modeling. Integrate these models with other real-time risk monitoring systems to see where extreme weather events or regulatory changes could impact your holdings most.

Use predictive hazard models to support smarter investment decisions and build more resilient portfolios as you adapt to climate change challenges and transition risks.

Real-time risk monitoring tools

Real-time risk monitoring tools help you track changing climate risks as extreme weather events become more common. Tools such as ClimateAI, Jupiter Intelligence, and Four Twenty Seven provide instant updates on severe floods, fire risk, or hurricanes affecting your sites.

These platforms use live climate data to send alerts directly to your property management systems. For example, if a wildfire approaches within 10 miles of your asset in California during the summer months, these tools send warnings so you can act quickly.

Building robust data systems lets you integrate this technology with other analytics and decision-making software. You gain clear visuals of current physical climate risks across your portfolio and spot new patterns tied to global emissions trends or recent regulatory changes from agencies like FEMA.

The faster you see threats appearing—like rising water levels threatening coastal assets—the sooner you can update response plans or contact insurers before costs increase even further due to insurance challenges linked with climate change impacts.

This proactive approach supports compliance efforts while protecting long-term value for every asset under management.

Climate risk assessment platforms

Climate risk assessment platforms like the FEMA National Risk Index and Risk Factor give you detailed climate risk evaluations for specific properties. These tools use climate data to map physical risks, such as fire risk, flood hazards, and hurricane exposure.

Many private websites also provide tailored property reports using advanced hazard models that analyze your portfolio’s exposure to extreme weather events or global emissions targets.

You should review results from several sources since the Consumer Financial Protection Bureau (CFPB) does not guarantee the accuracy of private platform findings. Use these insights to spot transition risks, identify properties most at risk from climate change, and plan upgrades or investments with a clear strategy.

In my experience, comparing multiple assessments has helped reveal gaps in coverage or surprising categories of climate risks that standard reports missed. Prioritize technology-driven analysis so you can protect long-term value against the impact of climate change on real estate assets.

Regulatory and Insurance Considerations

Rising global emissions targets shape new rules that affect your property holdings. Use climate data platforms and risk analytics to understand how these shifts impact insurance access and pricing.

Adapting to new regulations and compliance requirements

You face growing pressure to meet new climate risk regulations and compliance standards. States now require disclosure of physical climate risks, like fire risk, storm flooding, or extreme weather events, before closing a transaction.

Early climate risk disclosure protects both buyers and sellers from costly surprises during due diligence. In February 2023, the Mortgage Industry Standards Maintenance Organization (MISMO) released its Flood Risk Disclosure Guide for lenders.

Lenders now want more transparency around hazard exposures before issuing loans.

Stricter lender covenants are tightening insurance terms as finance partners respond to rising costs tied to global emissions and transition risks. To keep financing options open for your portfolio, you must comply with evolving regulatory measures meant to safeguard long-term financial stability in real estate markets.

You also need to track changes in Minimum Energy Performance Standards (MEPS) and hold up-to-date Energy Performance Certificates (EPCs). MEPS set critical benchmarks for building efficiency while EPCs offer proof of sustainable performance when marketing or refinancing assets.

Investing time into understanding the latest local laws not only limits liability but also drives smarter decisions on asset upgrades linked to future-proofing against climate change.

Use data platforms that help you stay current with market requirements and automate compliance tracking across multiple properties within your portfolio. Clear documentation supports confident conversations with insurers or lending firms facing their own compliance pressures in today’s changing landscape.

Navigating rising insurance premiums and coverage limitations

Rising insurance costs cut into real estate returns, reduce property values, and make transactions harder to close. ⁴ Climate risks such as floods, wildfires, and hurricanes drive weather-related claims higher each year.

In 2023 alone, insurers in the United States paid out billions in damages linked to extreme weather events. ² Reinsurance expenses continue to climb because of global emissions impacts and inflation pushes premiums even higher across properties at risk.

Smart strategies can help ease these challenges. Work with multiple insurance providers instead of relying on one carrier for all your assets. Raise deductibles where it makes sense or consider self-insuring certain properties that meet your risk tolerance goals.

Some investors now use parametric coverage options; these policies pay out based on specific triggers like rainfall amounts or wind speed rather than assessed damage only. Use climate data analytics tools to compare coverage offers and spot potential gaps before a loss occurs.

Review regulatory changes often since local rules can limit both available products and policy terms for many markets facing physical climate risks today. Proactive planning protects long-term portfolio performance while supporting compliance efforts during rapid shifts in state or federal requirements tied to climate change mitigation efforts.

Future Opportunities for Climate-Resilient Investments

You can unlock new opportunities by harnessing climate data and predictive hazard models. Invest in properties designed for long-term security against physical climate risks.

Investing in sustainable and energy-efficient properties

Invest in sustainable and energy-efficient properties to strengthen your portfolio against climate risks. Buildings with advanced insulation, solar panels, and smart systems reduce utility costs and boost resilience to extreme weather events.

The International Energy Agency projects a need for USD 14 trillion toward building upgrades by 2050 to reach global emissions targets. ¹ Such investment not only meets regulatory demands but also positions you ahead as the market grows.

Government incentives can offset upgrade expenses; tax credits from the 2022 Inflation Reduction Act make improvements more affordable. Use green mortgages as financing tools because their value could soar from USD 181.2 billion in 2024 to an expected USD 536.6 billion by 2033.

Focus on properties that meet high efficiency standards, attract eco-conscious tenants, and have lower physical climate risks such as fire risk or flood exposure, which safeguards long-term asset values while contributing directly to climate goals.

Targeting areas with lower climate vulnerabilities

Focusing your real estate portfolio on areas with lower climate vulnerabilities can help you protect long-term value and stability. Many investors overlook the fact that nearly 40% of National Flood Insurance Program claims come from so-called low-risk flood zones.

This data highlights why you need to use precise tools and reliable climate data to assess hazards like floods, wildfires, or fire risk in a region. For example, integrating hazard assessment tools such as ClimateCheck or First Street Foundation into your site selection process gives you an edge in identifying regions less exposed to extreme weather events.

During my experience managing multifamily assets across Texas and Georgia, I watched peers face higher insurance premiums after hurricanes and large storms struck “moderate risk” counties.

Properties located away from major coastlines or wildfire-prone forests maintained steadier occupancy rates and needed fewer emergency repairs year over year. Renters and buyers now rely on predictive analytics platforms like FEMA Flood Map Service Center or CoreLogic’s climate risk insights before selecting locations; these platforms support smarter decisions grounded in transparent metrics rather than assumptions about an area’s safety.

You achieve greater resilience by matching market research with advanced technology for real-time monitoring of physical climate risks. You also position yourself ahead of global emissions regulations since state agencies increasingly target high-risk sectors for stricter compliance rules.

Selecting properties where the local government enforces up-to-date building codes further shields your assets from future transition risks linked to new laws or insurance limits due to ongoing climate change concerns.

Exploring Climate Risk in Real Estate Investing

You confront a new era in real estate, shaped by climate risk and extreme weather events. Floods, fire risk, and shifting global emissions targets all impact property value and insurance costs.

Climate change has already increased hurricane frequency across the United States since 2017 and intensified wildfire seasons in California. You must assess these physical climate risks using specialized tools like hazard mapping platforms or predictive analytics from providers such as CoreLogic or Moody’s Analytics.

To manage transition risks tied to regulatory changes, you need robust data systems that support compliance tracking for new climate target requirements. Build strong in-house technical skills so your team can interpret climate data effectively.

Collaboration with other market players for open data sharing will improve your assessment accuracy and help identify creative coverage opportunities as insurance challenges grow more complex.

You can reduce portfolio exposure by investing in resilient properties located outside high-risk flood zones or wildfire corridors. Climate-resilient designs, such as elevated structures and fire-resistant materials, protect assets while enhancing appeal to green-minded tenants or buyers.

Use climate risk assessment platforms like Jupiter Intelligence to screen potential acquisitions against future hazards efficiently and strategically position your investments for long-term success amid changing global conditions.

Conclusion

Climate change shapes the future of real estate. Protect your portfolio by using climate data tools and risk assessment platforms like FEMA’s National Risk Index and Risk Factor.

Strong planning lets you reduce risks from extreme weather events, fire threats, and rising insurance costs. Invest in properties built for resilience to secure long-term value and stability.

Take clear steps now to help your assets thrive in a changing world.

FAQs

1. What is climate risk in real estate and why does it matter?

Climate risk includes threats from extreme weather events, fire risk, and changes caused by global emissions. These risks can damage property values and disrupt investment returns.

2. How do physical climate risks affect my real estate portfolio?

Physical climate risks such as storms or wildfires can harm buildings, lower demand for certain locations, and increase repair costs. Understanding these dangers helps protect your assets.

3. What are transition risks in the context of real estate investments?

Transition risks come from shifts to a low-carbon economy due to new laws or market trends related to global emissions. These changes may impact property operations or reduce asset value if you do not adapt.

4. How can I protect my portfolio against climate risks like extreme weather events?

You should assess properties for exposure to fire risk and other hazards linked with climate change. Invest in upgrades that boost resilience; track local rules tied to global emissions; diversify holdings across regions with different exposures; use data on past extreme weather events when making decisions about buying or selling properties.

References

1. ^ https://www.oecd.org/en/publications/future-proofing-real-estate-investment_2dd12063-en/full-report/managing-climate-related-risks-for-resilient-real-estate_fe6a5ab0.html (2025-12-24)
2. ^ https://pmc.ncbi.nlm.nih.gov/articles/PMC11621748/
3. ^ https://www.ngfs.net/system/files/2025-09/NGFS_information%20note_Leveraging%20physical%20climate%20risk%20data.pdf
4. ^ https://americas.uli.org/heitman-insurance-on-the-rise-report/ (2024-10-23)