As climate change intensifies, disasters are becoming more frequent and devastating. New technologies are emerging to help mitigate flood and fire risks, transforming the way we assess and manage risk.
Climate change is increasing the likelihood and intensity of natural disasters such as floods, wildfires, and hurricanes. The UK Environment Agency has updated its National Flood Risk Assessment (NaFRA) to show current and future flood risk from rivers, the sea, and surface water for England.
Climate change refers to significant long-term changes in the Earth's climate patterns.
It is primarily caused by human activities, such as burning fossil fuels and deforestation, which release greenhouse gases into the atmosphere.
These gases trap heat, leading to rising global temperatures.
According to NASA, 2020 was one of the hottest years on record, with the past decade being the warmest ever recorded.
Climate change has severe consequences, including sea-level rise, more frequent natural disasters, and altered ecosystems.
Assessing Climate Risk
New tools are being developed to help people and companies assess climate risk. The London-based climate risk firm, Climate X, offers a digital twin of the Earth, which simulates different extreme weather events and their potential impact on properties, infrastructure, and assets under different emissions scenarios. This combines artificial intelligence with physics-based climate models.
Climate risk refers to the potential damage or disruption caused by climate-related events, such as rising sea levels, more frequent natural disasters, and extreme weather conditions.
It can have severe economic, social, and environmental impacts on communities and businesses worldwide.
According to the 'United Nations' , 90% of global GDP is exposed to some level of climate risk.
Understanding and mitigating these risks requires a proactive approach, including adaptation strategies, sustainable infrastructure development, and climate-resilient planning.
Identifying High-Risk Properties
Banks and other lenders are testing their products, while property companies are using Climate X‘s services when considering new developments. The firm logs into its platform and identifies locations and existing building stock, providing risk rating and severity metrics tied to hazards.
Floods are a natural disaster that can cause significant damage to properties, 'infrastructure' , and human lives.
The main causes of flood risk include heavy rainfall, storm surges, snowmelt, and sea level rise.
According to the United Nations , approximately 2.3 billion people live in areas prone to flooding worldwide.
In the United States alone, floods account for over $8 billion in damages annually.
Understanding flood risk is crucial for mitigating its effects, which can be devastating for communities and economies.
Mitigating the Impact of Disasters
Faura, a New York-based company, analyzes the resilience of homes and commercial buildings. It looks at different elements of a property to understand how likely it is to survive a disaster and pinpoints resilience and survivability metrics. Insurance companies have the data to quantify this risk but have not built out the models.
Estimating Climate Risk in Property Sales
US firm Redfin estimates the percentage chance of natural disasters, such as flooding and wildfires, occurring up to the next 30 years across each property. This information can make or break a property sale, according to Redfin chief economist Daryl Fairweather.
The Importance of Understanding Flood Risk
Claire Sneddon‘s experience with flood damage has taught her the importance of understanding flood risk. She now works for a flood risk company and advises others to take action. ‘Flood risk is only going to get worse over the coming years, so it’s essential to find out as much as you can about the flood risk to a property.’
