The impact of climate risk on insurability is a growing concern for nearly three quarters (68%) of businesses with built environment assets, according to a new global report commissioned by Buro Happold in partnership with FT Longitude.
The ‘ESG as a catalyst for business resilience and growth in the built environment’ report, which is based on a global survey of 400 global senior executives at businesses that either own, manage or invest in built assets, found 58% of respondents are already developing an ESG strategy or actively working to integrate ESG into their broader strategy.
A quarter of respondents say they have already embedded ESG into their organisation’s core strategy and for many businesses it is the growing risk of stranded assets – and the resultant insurability issues – in the built environment that makes ESG commitments mission critical.
Oliver Plunkett, CEO of Buro Happold, said: ”By proactively factoring in material environmental, social and economic risks, businesses with built assets can unlock significant operational and financial value. At a time when environmental and social risks are rapidly translating into short-term financial exposures, organisations that prioritise resilience, embrace change and align their strategies with evolving risks and opportunities will be the ones shaping our skyline.”
Duncan Price, Buro Happold’s sustainability and climate change lead, added: “We have new evidence that embedding ESG into real estate can improve financial performance and deliver long-term business benefits. Strategies built with environmental and social outcomes in mind will ultimately reduce regulatory risk, attract investment and create products and portfolios that are better designed, fit for future demand have enduring market value.
