Physical risks and opportunities
Chronic and acute physical climate issues are most material under the “hot house world” scenario, where global emissions continue to grow, and the global average temperature rises to greater than 3C above pre-industrial levels by 2100. These risks also tend to materialise in the longer term, when the climate impacts are most acute.
Increase in extreme weather events
Leads to increased expenditure to repair buildings and make them more resilient; potentially higher costs of insurance.
Risk to assets due to sea level rise and greater sea surge events
Leads to higher costs of repairing damage to properties in exposed areas; may also result in higher costs of insurance and rates.
Rising mean temperatures
Results in increased costs for cooling and greater load on plant and equipment, leading to more frequent maintenance.
Increase in rainfall intensity
May impact ground conditions and undermine assets and connected infrastructure.
Increase in drought conditions
Leads to increased water scarcity and higher water costs, which may impact tenant occupancy costs, and potentially higher rates due to infrastructure upgrades.