Global risks for infrastructure: The climate challenge

This report is the second in a three-part analysis of the ‘global risks’ facing infrastructure investors. The first instalment of this series illustrated the risk landscape for infrastructure. This second instalment provides specific recommendations for infrastructure investors looking to protect against the environmental risks on the horizon.

The key takeaways of this report, are:

1. Navigating the climate risk landscape will require a keen understanding of both physical and transition risks;
2. Resilience-building measures for climate risks must be subject to continuous review and improvement to keep pace with the evolution of different risks;
3. Effective scenario planning links model outputs to business metrics to inform a firm-wide response to climate resilience;
4. Taking a life-cycle approach to building climate resilience can ensure value for money is secured for investors and operators;
5. True resilience to climate risks can only be achieved when investors understand asset interdependencies and proactively work with public authorities to build ecosystem-wide resilience for local communities and infrastructure peers.