CLIMATE CHANGE RESILIENCE IN THE BUILT ENVIRONMENT A RESILIENT VALUE PROPOSITION There is a clear value proposition for a resilient and adaptable built environment at regulatory, organisational and owner/occupier scale, which includes drivers and benefits alongside the cost of inaction: DRIVERS AND BENEFITS For national and local government • Build relationships with partners and communities by cooperating on resilience measures. - Align with international guidance and and regulations on climate adaptation and financing regulations. - Enhance long-term growth prospects by protecting livelihoods of local people and businesses from climate change-related damage. For private sector organisations • Protect human capital, business operations and supply chains from physical effects of climate change. • Stay ahead of regulatory requirements to meet net zero emissions and climate regulations. • Enhance brand and reputation with climate conscious customers and other stakeholders. • Opportunity to respond to consumer's higher market value of environmentally-minded brands with higher pricing and yields. • Incorporate climate and nature related financial disclosures resulting in improved ESG performance, such as: - Alignment with targets of the Taskforce for Climate Related Financial Disclosure (TCFD), a private-sector oriented framework that requires businesses to undertake future-scenario aligned analysis of climate risks and opportunities, that is becoming increasingly mandated. - Alignment with tools such as Physical Climate Risk Assessment Methodology ( PCRAM ) - which provides guidelines for integrating physical climate risks in infrastructure investment appraisal. • Demonstrate ethical choices and provide social value by supporting natural capital and the prevention of environmental destruction, optimising ESG and corporate reputation. For building owners and occupiers • Strengthen community and social cohesion by cooperating on resilience measures. - Reduced risk of damage to personal property, businesses or necessary supporting infrastructure. - Heightened wellbeing, comfort and reassurance at community level, particularly during weather events. COST OF INACTION The cost of inaction to responding to current and future climate change impacts will be felt financially as well as socially. The difference between inaction on climate change and a rapid transition to resilience is reportedly worth $221 trillion USD to the global economy (Deloitte Center for Sustainable Progress) . • At a built environment level, delayed action on climate resilience and adaptation will see reduced building performance, resulting in sub-optimal living and working environments. This could spiral to a global decline in health and wellbeing, heightening inequalities and injustice between regions. • The increasing quantity of severity of extreme weather events will likely lead to damage of buildings and infrastructure, with heightened risk of stranded assets and higher insurance premiums for owners. Estimates suggest a $1.8 trillion USD investment by 2030 in early resilience measures (warning systems, resilient infrastructure, dryland agricultural crop production, mangroves, and water resource management) would yield more than $7 trillion USD of benefits in avoided costs from climate change effects (Bank of America) . Whereas the delay in implementing mitigation and resilience strategies is costing the global economy an additional $0.3-0.9 trillion USD a year (World Health Organisation) . For more information about the value proposition for a sustainable built environment please visit worldgbc.org/business-case 4
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