Plan now to protect future assets
It’s no secret the built environment has experienced some challenging times recently. The fluctuating price and availability of materials continues to have an impact on supply chains for construction projects all over the world, making budgeting and project timelines more difficult to monitor.
With ESG being at forefront of every developer’s mind, climate change and a desire for companies to reach net zero has resulted in a focus on using modern methods of construction. While the real estate and construction world is moving forward at a fast pace in utilising materials such as cross laminated timber, the insurance market is less in favour of these modern methods due to a lack of understanding of the benefits and the absence of historical data on how buildings constructed of these materials perform.
Collecting and understanding data from the ‘buildings of the future’ will be pivotal, not only in reducing CO2 emissions but also reducing insurance premiums.
As part of our long-term commitment to protecting clients and their assets as the effects of climate change take their toll, we have collaborated with a global leader in climate risk data and are able to offer our clients the ability to run data-driven risk analysis and score their assets' exposure to the physical risks associated with climate change and other environmental issues. This will have a huge impact on developers and property owners, as well as investors and lenders, whilst enabling insurers to make informed decisions on the rate of premiums.
Of course, it is not only the geographic location and exposure to extreme weather events that influence insurance premiums and there are a number of unconsidered consequences of going green. If not well maintained, green roofs and walls can act as tinder for a fire. Ensuring they have a steady water supply in the dryer months is crucial to reducing fire risk. However, too much irrigation can lead to flooding! Solar panels, often forgotten once installed, require regular maintenance to ensure the wiring is not at risk of causing an electric fire.
While we continue to strive to net zero, it’s great to see some really exciting and innovative technologies being adapted by the nominees in the ‘developer of the year’ category, and all the nominees should be extremely proud of their success over the last 12 months. It has not been easy!