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Workstream 6: Finance and risk
With global temperatures having recently surpassed 1.5 C warming across an entire year, the alarm has been raised for all sectors to embed climate thinking into their work as soon as possible or face disastrous consequence.
Climate Finance and Risk for the built environment may seem complex but it will be a vital part of the story if we’re to even approach Net Zero, protect our assets or build the sustainable, resilient homes we need.
This workstream is led by ISSE and includes measurable deliverables divided into three priority groupings: short term, medium term and long term.
What have participants achieved so far:
UK Finance has agreed an MOU with CIC to amplify policy engagement and focus on three priority policy areas:
- Finance and Risk, linking to the work of the UK Finance prudential team; and the CIC Climate Action Plan
- Adaptation and Resilience, exploring the feasibility/ options of jointly supporting/ recommending government establishing a consumer facing Retrofit Advisory Service ; and,
- Education and Qualification, linking to UK Finance’s recommendation “to grow the capacity of the construction industry … including local skills building”
CIC has been hosting events on climate finance and risk, with UK Finance presenting at a recent economic and policy briefing. Our recent climate finance and risk seminar has included the following speakers:
- Chris Gardner, Joint CEO, Atelier Discussing the Carbonlite Challenge and the ground-breaking work Atelier has done on sustainable finance solutions for developers who want to reduce the carbon footprint of the homes they build.
- Hannah Giddings, Senior Advisor on Resilience and Nature at UKGBC presenting UKGBC’s excellent work on measuring and reporting climate-related physical risks to built assets using the latest case studies.
- Alexa Culver from the Environment Bank covering strategies for ensuring Biodiversity Net Gain compliance.
- Darren James, Chief Executive Officer, Keltbray/Construction Leadership Council addressing the financial impact of physical and transitional risks on the route to net zero and how to manage the tension between growth, profit and sustainability.
Resource Library
- UKGBC Framework for Measuring and Reporting of Climate-related Physical Risks to Built Assets
UKGBC have launched a Framework to provide organisations with a consistent methodology for measuring climate-related physical risks to built assets. The guidance includes detailed information on the physical risk assessment process; a methodology for built asset scale; and a standalone reporting framework which can be used to support the preparation of Task Force on Climate-Related Financial Disclosures disclosure reports.
https://www.ukgbc.org/ukgbc-wo...
- UK Finance policy paper on Mobilising Capital for the Net Zero Transition
The paper identifies examples where pools of capital available for low-carbon infrastructure and projects are underused because of gaps in the policy environment. The recommendations, focusing on cross-cutting policy enablers, can help to drive up demand and incentivise the allocation of capital toward Net Zero objectives.