Marsh & McLennan - Global Risks for Infrastructure

The report emphasizes the importance of navigating the climate risk landscape by understanding both physical and transition risks. Physical risks refer to the direct impacts of climate change, such as extreme weather events, rising sea levels, and changing temperature patterns. Transition risks, on the other hand, arise from the shift towards a low-carbon economy and the potential financial implications for businesses and investors. To effectively address climate risks, resilience-building measures must be subject to continuous review and improvement. This means staying updated on the evolving nature of different risks and adapting strategies accordingly. Scenario planning plays a crucial role in this process, as it links model outputs to business metrics. By understanding potential future scenarios, businesses can develop a firm-wide response to climate resilience. Taking a life-cycle approach to building climate resilience is also highlighted in the report. This approach ensures that investments in resilience provide long-term value for money for investors and operators. It involves considering the entire lifespan of assets and infrastructure, from design and construction to operation and maintenance, with a focus on sustainability and climate adaptation. Furthermore, the report emphasizes the importance of understanding asset interdependencies and collaborating with public authorities. True resilience to climate risks can only be achieved when investors proactively work with public authorities to build ecosystem-wide resilience for local communities and infrastructure peers. This requires a comprehensive understanding of how different assets and systems are interconnected and how they can collectively withstand and adapt to climate risks. It is important to note that the report acknowledges the inherent uncertainty in modeling, analytics, and projections. While the information and analysis provided in the report are believed to be reliable and up-to-date, there is no warranty of any kind, and the report disclaims any responsibility for the accuracy or completeness of the information. Additionally, the report does not offer any securities or solicitation to buy or sell securities, and it disclaims liability for any loss or damages arising from actions taken or decisions made based on the report.