Global mean temperatures have already reached 1.2°C above the pre-industrial average and are almost certain to reach the Paris Agreement aspiration limit of 1.5°C in the next decade. Yet, most design standards are still based on historic weather data, meaning that building and infrastructure are not fit for the current observed warming, let alone any future scenarios. This is on top of the millions of existing buildings which were never designed with climate change in mind.
 
Climate change resilience is therefore a recurring theme within all global new and emerging ESG disclosure frameworks, including the SFDR and EU Taxonomy. Born off the back of the insurance industry’s recent losses due to the physical impacts of climate change, there is a growing emphasis on mitigation and evaluation of physical risks to individual assets and portfolios. It is expected that all buildings will require bespoke physical risk assessments and adaptation strategies within the next three years, or risk insurance premium rises and asset devaluation.

This session will introduce the definition of Climate change resilience and adaptation including the SFDR and the EU Taxonomy, requirements including:

•  to review the risks to individual assets or entire funds for their physical, reputation and transitional risks associated with climate change in accordance with TFCD and IFRS S2 Climate-related Disclosures
• to produce risk reduction plans and implementation strategies to future proof assets, funds, and portfolios