As the impacts of climate change unfold and extreme weather events become more severe, our natural and built environments are becoming increasingly vulnerable. The coping range of our modern infrastructure – community facilities, transport systems, schools, hospitals, homes and workplaces – is being tested. Many new and existing assets are built for a climate of the past, not of the future. There is a growing need to understand climate risks and address these through adaptation actions.
Understanding the potential consequences of future climate-related risks are the focus of climate risk assessment. Evaluation of climate risk is essential to understand and identify risks, with the goal of developing targeted adaptation strategies to increase asset resilience.
Demand for climate risk assessment is driven by a growing realisation of how a changing climate may affect the built environment, businesses and local communities. Currently, our understanding of this is limited. A recent ASIC report highlighted that only 17% of a sample of sixty ASX 300 companies consider climate change as a material risk in their operating and financial reviews. The report’s message is firm – businesses should “disclose material business risks that may impact upon future prospects”.
Climate risks are financial risks, and disclosure is good business.
To support organisations in understanding climate risk, Edge delivers dozens of climate change workshops every year, designed to engage diverse participants through the identification and evaluation of climate risks and adaptation opportunities. Our workshops have assessed farms, factories, buildings, malls, maintenance facilities, roads, tunnels and trains. Workshop outcomes aim to understand risks and build resilience through design and operational systems change.
What’s the Challenge
Edge’s risk workshop approach is highly effective for single assets but is limited by the need to get the right people in the room, the costs associated delivery and travel, as well as the development of risk registers and adaptation plans.
The Challenge: Cost-effectively delivering climate risk and adaptation assessments to clients with large, diverse portfolios.
Industry needs a new way of assessing climate risks that provides high quality assessments delivered strategically and efficiently. There is a need to provide an offering to asset-holders that:
- Supports the prioritization of in-depth climate risk assessments and provides portfolio-wide insights and recommendations;
- Uses the most up-to-date climate projections;
- Provides climate risk guidance across the asset lifecycle;
- Delivers comprehensive climate change risk assessments aligning to key reporting requirements; and
- Can be tailored to the requirements of different asset and organization types.
And the opportunity?
Edge sees an incredible opportunity to support organizations with large asset portfolios through a remote, platform-based approach. The last thing we want is for our clients is to be limited in their ability to undertake assessments at the risk of missing important asset-level vulnerabilities across large portfolios.
The Opportunity: Develop a way to assess multiple assets remotely and cost effectively.
Our climate risk solution
As with the expectations of society around climate risks, our services are growing and adapting. We are developing a climate risk assessment platform. Our platform will offer clients a suite of tailored climate change risk assessment services, providing an engaging solution to understanding, evaluating and mitigating climate risk.
Our tool will allow our clients to assess risks across an unlimited number of assets with input from the people who know the assets best. Building on our existing services and knowledge database, the platform will include multiple modules and an intuitive, insightful user experience.
Asset typologies and locations will prompt the development of tailored climate change projections that, presented alongside historic climate hazard insights, provide a comprehensive view of potential climate impacts to a property.
Tool administrators will have access to portfolio-wide data and key risk insights on a user homepage to simplify reporting processes. A mapping tool will facilitate rapid analysis of asset risk profiles across broad geographical regions (see example in the screenshot below).
Our solution: An interactive climate risk assessment platform aligning to TCFD, GRESB, GBCA and ISCA requirements.
Global inaction on emissions reduction seals the deal for continued climate change. With this will come an acceptance of its challenges and opportunities. Edge looks to play a meaningful role in both addressing emissions reduction and supporting early adopters to build resilience and a plan for adapting to climate change.
Keen on collaborating?
If your organisation has multiple assets and is interested in building resilience to the physical impacts of climate change, our climate risk platform may be the solution you have been looking for. Get in touch with us today for more information and collaboration opportunities.