Recommendations to build industry and societal resilience in the built environment system The following recommendations give built environment companies an array of solutions where they can take the lead and manage growing risks from climate hazards in the built environment: Integrate local climate risk analysis into capital maintenance and investment decisions, while supporting societal transitions –Develop a process and a partner ecosystem to map climate risks at the asset level. –Invest in the necessary nature and climate expertise, data, skills and technology to support better decision-making and maintain the expected return on invested capital in the face of evolving local risks. –In the event that investments in high-risk locations no longer remain viable, allow for long-term planning with local and regional stakeholders and safeguards to ensure a just and fair transition for communities most affected. Invest in resilient materials design and nature- based solutions to withstand and maintain efficiency through extreme weather –Create building, factory and asset designs that can endure extreme weather events. –Invest research and development into more resilient raw materials that support energy and water efficiency, to help avoid operational shocks and overheads. –Avoid further habitat conversion and leverage nature-based solutions to contribute to natural resilience against hazards such as coastal and fluvial flooding. Foster cross-sector collaboration on mutual recovery programmes to build regional resilience –Establish mutual recovery and assistance programmes with operators of comparable infrastructure facing common climate threats. –Form alliances to boost shared resources, expertise and recovery capabilities in the event of extreme weather or natural disasters, reducing downtime and expediting recovery. Adaptation case studies in the built environment system FIGURE 16 Sources: World Economic Forum, CEMEX, Exelon. 1 Hitachi Hitachi collaborates with Japanese local governments to develop smart sewer systems to prevent flooding during periods of intense rainfall. Using AI, they automate decisions for pumping stations that manage rainwater flow into rivers. The AI predicts inflow amounts based on rainfall data and pipe water levels, then creates operation plans for rainwater pumps.2 CEMEX CEMEX promoted their permeable concrete PERVIA™ for infrastructure resilient to extreme weather events. Partnering with the Water Utility Company in Bogota, PERVIA™ was applied for pedestrian paths near wetlands prone to flooding. Digital simulations and on-site tests demonstrated its effectiveness in permeating rainwater while providing a durable surface. This initiative led to replacing asphalt with permeable concrete, securing benefits like flood protection and recreational use, and cost savings.3 Exelon Exelon is enhancing adaptation planning to build resilience against changing weather patterns by investing in maintaining infrastructure, such as poles and vegetation trimming, and conducts storm drills. They participate in mutual assistance programmes for quicker power restoration post major storms. Business on the Edge: Building Industry Resilience to Climate Hazards 32

Business on the Edge 2024