How facilities managers are protecting against climate risks

“As companies strive to maintain their people’s health and comfort through increasing temperatures, systems maintenance will become increasingly critical,” says Harris Karim, Senior Sustainability Product Director at JLL. AI tools such as Hank, which continuously optimizes HVAC equipment, potentially reducing energy consumption and costs by 20%, are also helping.

In flood-prone regions where heavy water infiltration can damage basement equipment, companies are relocating critical systems or adding sump pumps, installing flood doors and upgraded drainage systems. New York’s Hudson Yards development, for example, can collect nearly 10 million gallons of stormwater every year from roofs and plazas and use it for watering its green spaces.

In contrast, in water-scarce regions where dry, contracting soil can impact building foundations, damage pipes, misalign floors and impact biodiversity efforts, smart irrigation systems and water recycling are coming into greater focus.

More companies are also re-evaluating water use in their operations. For example, South-African based Firmenich implemented water-efficient plumbing to use 84% less water in lavatories in its Johannesburg headquarters, as well as a rainwater harvesting system to reduce reliance on municipal water.

“Facilities managers are more cognizant of the need to manage energy and water consumption efficiently, driven by rising utility costs, occupier demands for reporting, and the growing importance of resource management in the face of climate change,” says Rose.

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.