Recent natural disasters,
from Hurricanes Sandy, Harvey and Maria to wildfires in
California, factor into a growing focus on resilience in cities and buildings.
Resilience involves strategies that enhance durability and minimize damage
from natural and manmade disasters.
The goals of resilience are to mitigate
risks, prevent loss of life and reduce
OWNERS TAKE NOTICE
Concerned with the risks of climate
change and pressured by investors to
respond, some owners have begun to
develop resilience strategies for their portfolios.
Strategies include integrating resilience factors into investment and enterprise risk
management processes, including acquisition and disposition decisions, and requiring
management teams to apply resilience concepts such as resource efficiency and disaster
planning to building operations.
INSURANCE COMPANIES ALREADY RESPONDING
The insurance industry was among the first to sound the alarm on climate change.
According to Bloomberg.com, AXA, a global insurance company, has warned that a
temperature increase of 3 to 4 degrees would make the planet uninsurable. Insurance
companies have already raised rates in areas prone to storms, extended the distance
from the coast beyond which they will not provide insurance, and abandoned some
coastal markets altogether.
Companies are reportedly providing reduced premiums to properties that incorporate
resilience strategies. Such incentives could make resilient design and retrofits more financially feasible.
A Growing Focus on Resilience
By Todd Feist