MENU PLACES PEOPLE PARTNERS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Governance Strategy Risk Management Metrics and Targets Risk Management How we identify, assess and manage climate-related risks We assess the key physical and transition risks and opportunities posed by climate change to our global assets and business operations to help us develop long-term strategies that protect our business from climate-related risks. We have used quantitative and qualitative scenario analyses which consider impacts along a timescale which ranges from the immediate term to 2030 and as far ahead as 2100. Physical Risks In accordance with the TCFD’s recommendations, we have conducted asset-level modelling of the acute and chronic physical risks (namely flooding, heat stress, water stress and extreme wind) associated with the four Representative Concentration Pathways (RCP 2.6, 4.5, 6 and 8.5) used by the Intergovernmental Panel on Climate Change. These pathways broadly represent comprehensive climate scenarios related to three projected global average temperature increases: 1.5°C, 2°C and 3°C. We have collated historical data and projected climate variables, such as temperature, precipitation, sea level rise and wind speed from suitable global climate models, and applied local meteorological data to predict local climate scenarios. This data has allowed us to accurately evaluate the exposure of specific assets and operations in selected timeframes, from the immediate term to the distant future, namely, 2025, 2030, 2050, and 2100. We have also undertaken detailed asset-level assessments to evaluate the degree of sensitivity and adaptive capacity of individual buildings under the potential effects of the identified climate risks. These assessments consider system robustness such as existing flood prevention systems and façade conditions; system redundancy, such as the capacity of chillers and water supply; and susceptibility to past extreme weather events. Our analysis showed that there is an overall low to moderate level risk of flooding, heat stress, water stress and extreme wind for our global portfolio in all assessed climate scenarios. This is attributed to the relatively robust adaptive capacity and mitigation measures we have integrated into our buildings. SUSTAINABLE DEVELOPMENT REPORT 2022 227