How facilities managers are protecting against climate risks

With today’s buildings increasingly feeling the effects of a changing climate, facilities managers are facing the dual challenges of improving resilience and ensuring the right emergency plans are in place.

Rising temperatures, prolonged droughts, more frequent and intense storms and heavier flooding are already putting building infrastructure and operations to the test.

By 2050, over 90% of the world’s largest companies will have real estate financially exposed to climate risks, according to S&P Global.

“Mitigating climate risks in real estate is becoming an urgent priority as companies seek to protect business continuity and minimize the costs of disruption,” says Glenn Milner, Senior Climate Advisor at JLL. “The changing regulatory landscape also demands action to make buildings more resilient.”

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.