Climate change is exposing real estate to damage and disruption costs
Insight
How facilities managers are protecting against climate risks
Safeguarding workplace environments
As climate risks threaten building operations, facilities managers are upping maintenance efforts.
“There’s intensifying pressure on preventative maintenance as facilities managers focus on maintaining a safe, stable working environment,” says Jessica Rose, Global Sustainability Integration Lead at JLL. “Testing is evolving in terms of frequency and focus areas and there’s ongoing evaluation around whether existing building safety standards are sufficient for today’s climate.”
Prolonged heatwaves, for example, cause concrete and metal to repeatedly expand and contract, requiring more monitoring of structural integrity. Hotter environments also increase the need for air-conditioning for people inside, straining HVAC systems.
Long-term climate strategizing
While climate risk is starting to influence location strategy - one U.S. national bank factored in hurricane risk when considering where to open new branches in the Southeast – for many facilities managers it’s about protecting the buildings they’re working in today.
The stakes are getting higher with climate risks projected to spike insurance costs by up to 80%, with other costs to maintain business as usual and remain compliant also set to rise, according to JLL’s Climate Inflection Point research.
Yet many companies are lagging behind. Only one in five has a resiliency plan in place to adapt to the physical risks of climate change, according to S&P Global. Real estate performs slightly better, with 26.5% adapting for physical risk.
“Organizations that don’t assess climate risks and implement climate mitigation and adaptation strategies will face disruption, damages and higher maintenance costs,” says Milner.
For facilities managers, it means taking action sooner rather than later, says Rose.
“By planning ahead for climate risks while actively seeking to optimize resource use, facilities managers not only protect buildings but safeguard the continuity and sustainability of businesses and their employees through the changing climate,” she concludes.