In this keynote presentation during Risk Australia Virtual 2020, Founder & CEO, Emilie Mazzacurati, discusses “Taming the Green Swan: Incorporating Climate Risk into Risk Management.” She covers changes in the regulatory environment and how investors can use science to inform risk management and investment decisions. Emilie discusses progress made on climate risk disclosure to date, explains the latest thinking on conducting scenario analysis for climate risks and provides case studies of the economic impacts of climate risk in Asia and Australia.
Climate change will expose the airport sector to increased physical climate risks within the next two decades. In its report, US airports face growing climate risks, but business model and resiliency investments mitigate impact, Moody’s Investors Service leverages Four Twenty Seven’s physical climate risk data to explore potential damages from increased exposure of US airports to floods, heat stress, hurricanes, sea level rise and wildfires.
The report found that in 2004-2019, an average 37% of delayed flights annually resulted from climate-related extreme weather events. Airports along coastlines or rivers face particular risks as floods can damage crucial structures such as runways and terminals leading to significant costs or rendering the assets unusable. Likewise hurricanes can cause widespread damage including economic impacts on broader regions. Heat stress and wildfire smoke can both present challenges for planes taking off or landing, leading to delayed or canceled flights or adjusted cargo loads.
Airports often undertake long-term capital intensive projects and integrating resilience measures into planning these investments will be critical. Liquidity will also help absorb the effect of disruptive climate-related events.
Moody’s subscribers can read the full report here.
To learn more about Four Twenty Seven’s climate risk data, check out our solutions for investors, banks and corporations or read our report on.
This RCLCO Real Estate Advisor webinar focuses on integrating climate risk analytics into decision-making for real estate investors and opportunities to leverage this information to build resilience.
- Stephen Bishop, Senior Associate of RCLCO Real Estate Advisors, discusses the impacts of physical and transition climate risks on real estate.
- Emilie Mazzacurati, Founder & CEO of Four Twenty Seven, presents on opportunities to leverage climate data to inform an understanding of climate risk in real estate portfolios.
- Cyndi Thomas, Managing Director of RCLCO Real Estate Advisors, shares RCLCO’s framework for integrating climate risk mitigation practices.
- Moderator: Joshua A. Boren, Director, Business Development at RCLCO Real Estate Advisors