How resilience translates into opportunity and risk for investors, managers and operators

SUSTAINABLE
REAL ASSETS
CONFERENCES
2018
RESILIENCE

S E S S I O N 1
Resilience:
what is it
and why is it
impor tant
for the
real estate and
infrastructure
sector s?
C a r o l i n e F i e l d
R e s i l i e n c e P r a c t i c e L e a d e r
M M I E n g i n e e r i n g
I n t e r v i e w e d b y
J o n a t h a n B r a s s e
S e n i o r E d i t o r , P E R E

Resilience: Future Proofing Investments
Caroline Field, MSc BEng MICE PE RSES
Resilience Practice Leader, MMI
Chair BSI City Resilience Standard

engineers scientists innovators
ISO RESILIENCE DEFINITION
“The ability to absorb and adapt in a changing environment”

The changing perspective of resilience.
Traditional
•Shock response/recovery focus
•Reactive
Contemporary
•Mitigation & response
•Horizon Scanning
•Shocks & Stresses
•Prevention and sustainability
Pioneering
•Agility
•Resilience in the round
•Competitive advantage
•Resilient business model linked
to value

WHY RESILIENCE?
Image Timothy Hursley

Geopolitics
Image Timothy Hursley

Urbanisation & Demographics

Climate Change
Image: Antony Field

Natural Hazards

Technology
A r t i f i c i a l I n t e l l i g e n c e
A u t o m a t i o n
3 D P r i n t i n g

Malicious Hazards

CITY RESILIENCE

British Standard BS 67000
Fundamentals

British Standard BS 67000
Traditional Contemporary Pioneering
5.2 Assess & Prioritize
5.3 Plan & Prepare
5.5 Continuously Improve
5.1 Organize & Define
5.4 Partner & Deliver
Secure & Protect Respond & Recover Prevent Sustain & Enhance Integrate & Adapt Innovate & Accelerate

INFRASTRUCTURE RESILIENCE
CUSTOMERS
Financial
CorporateOperational

A resilient business is adaptive, agile, robust and competitive
ORGANISATIONAL RESILIENCE

ADAPTABILITY
M o b i l i t y
T e c h n o l o g y
L o a d i n g
W o r k P a t t e r n s
P r o c e s s
U s a g e

Leadership & Operational AGILITY
-15 -5 5 15 25 35 45
Initial Results for Adaptive Capacity Survey
Continuous Improvement
Process Engineering
Comprehensive Situational Awareness
Organisational Change Management
External collaboration
Flat Structure
Technology enhanced flexible working
Open communication of Ideas
Fair Accountability
Early communication
Empowered
Risk Governance
Strategic Risk Management
Healthy Communication
Innovation Strategy
Foster Innovation
Broad Value Targets
Always refer up
Create and Protect Value
Horizon Scanning
Diversity Positive
Consistency of Leadership
Strength of Leadership
Confidence in Leadership
Leadership
Belief
Identity
Engagement in Strategy
Strategy
Vision
Alignment
Leadership
Risk Management
Integration &
Inclusion
Information
Management
Reflection &
Learning

Seize Opportunities for COMPETITIVE advantage

Measures to mitigate risk and build a ROBUST business
DIAGNOSTIC
DIAGNOSTIC
G o v e r n a n c e & O p e r a t i o n s
E n g i n e e r i n g M i t i g a t i o n
P l a n n i n g , P r e p a r a t i o n & Tr a i n i n g

INTEGRATED & INCLUSIVE
Image: BuroHappold

RESILIENCE DEMAND RESILIENCE CAPACITY
SHOCKS
STRESSES MITIGATION
ADAPTIVE
CAPACITY
Financial
QualityReputation
CultureSustainability
ICT Systems &
Resources
Products &
Services
People & Culture
Controls, Rules &
Regulations
Management &
Operations
Community &
Society
Financial Systems
& Assets
Research &
Innovation
Market &
Customers
Leadership
&Governance
Logistics,
Partners &
Suppliers
Physical Assets
& Resources
Aging Demographic
Climate Change
Cyber
Health
Infrastructure
Rapid Population
Growth
Terrorism
Globalization
Weather
Health
Protect
Robust
Diversify
Fail Safe
Leadership
Learn & Improve
Recovery
Response
Awareness
Urbanization
A resilient business model linked to value outcomes.

Where is resilience most needed?

engineers scientists innovatorsengineers scientists innovators
Improve redundancy of
power supply
Review & Improve
infrastructure adaptability
Customer Outreach &
Education
Innovation strategy to
embrace automation and
integrate with operations
and infrastructure
Increase protection of IT
system
Move to flatter management
structure
Engineered situational
awareness
Consolidate security, risk and
business continuity into
resilience department
Communication & training
Diversification of Mobility
Options
Evaluation of expansion
options
Improve Data Collection &
Sharing – information
management system
Scenario Workshops
Risk management alignment
to company value delivery
Prioritising Investment.
INTEGRATED INCLUSIVE DURABLE REFLECTIVE ADAPTIVE
SHORT
MEDIUM
LONG
Customer Feedback &
Learning
Lessons learned workshops

Predicting return on investment.
0 to 18 months 18 months to 3
years
3 to 6 years 6 to 15 years 15 years +
Annualised potential increase in productivity
Evaluation of expansion options
Diversification of mobility options
Innovation Strategy to embrace automation
and integrate with operations and
infrastructure
Increase protection of IT system
Improve redundancy of power supply
Review & Improve infrastructure adaptability
Consolidate security, risk, business continuity
and strategy into resilience team
Engineered situational awareness
Scenario workshops
Strategic risk management
Move to a flatter management structure
Improve data collection & sharing -
information management system
Community & training

Future Proofing Investments.
-80% -60% -40% -20% 0% 20% 40% 60% 80% 100%
5 Year Income
15 Year Income
30 Year Income
5 Year Costs
15 Year Costs
30 Year Costs
Self Drive Cars
Electric Cars
Electronic/ Biometric ID
Mobile Technology – VR, ER
Increasing size and range of aircraft
Electric planes
Personalised Air Transport
Automictic vending
AI
Brexit
Deregulation
Taxation
Terrorism
Employment – AI unemployment – welfare –
focus on front facing services
Government unable to fund customs and
boarder
Working and non working class
Greater gap between rich and poor
Workers – skills shortages
Loss of corporate knowledge
AI
Housing – pressure on green belt
Growth of Bristol – urbanisation
Factors reducing costs
Factors reducing income
Factors increasing costs
Factors increasing income

• Facilitates clear decision making and prioritisation of resources
• Increase strategic adaptability, agile leadership and robustness
• Provides business case for investing in resilience measures
• Leads to the realisation of competitive advantage.
Realise the full benefits of investing in resilience.

Engineering a Safer World
cfield@mmiengineering.com

S E S S I O N 2
How resilience
translates into
oppor tunity
and risk for
investor s,
manager s and
operator s
M o d e r a t o r : B e t h A m b r o s e
D i r e c t o r U p s t r e a m S u s t a i n a b i l i t y
S e r v i c e s
J L L
P e t e r v a n d e n T o l
F u n d M a n a g e r L i s t e d R E E U
M N S e r v i c e s
M i c h a e l B r o o k s
C E O
R E A L P A C
N i a m h M c B r e e n
I n v e s t m e n t D i r e c t o r
A M P C a p i t a l I n v e s t o r s
A s h l e y H e g l a n d
S u s t a i n a b l e D e v e l o p m e n t A d v i s o r
S w i r e P r o p e r t i e s L i m i t e d

MN – Resilience
Real Assets
25th of April 2018

1. MN
2. MN Investment Beliefs
3. Resilience: 4 Investment Themes

@ MN we:
Ensure financial future of 2 mio people
Manage more than € 130 billion globally
Provide pension, social schemes & insurance
34 institutional clients, 35.000 employers
Focus on people & environment

4MN - Future proof RE Investing25th of April 2018
Introduction

5
Conviction
Long Term Focus
&
Responsibility
Targets
Invest with Impact
&
ESG-integrated Policies
MN-Pillars
Close Client Dialogue
&
Active Ownership
Real Assets Specific
(Climate) Risk Assessments
&
Enhance Sector Transparancy
MN Investment Beliefs

6
Impact Investments on our World Impact World on our Investments
MN - Future proof RA Investing25th of April 2018

7
4 Main Investment Themes
• Affordability
• Circular Economy
Energy Transition •
Climate Risk Assessments •

8
Affordability
• Affordable housing
• Neighbourhood improvements
Focus: Mid-level rents •
Apartment improvements •

9
Affordability – improvements
• Improving energy performance of assets
• Greening up open spaces
• Adding playgrounds
• Adding terraces
Example: Vonovia – Preußwald, Aachen

10
Energy Transition – Real Estate
• Greening up housing portfolio
• Target 100% Green Label
>75% Green Label •
Reduces CO₂ impact •

11MN - Future proof RE Investing25th of April 2018 MN - Future proof RA Investing25th of April 2018
Greening up Housing Stock

12MN - Future proof RE Investing25th of April 2018 MN - Future proof RA Investing25th of April 2018
Greening up Housing Stock

13
Energy Transition - Infra
• Renewable energy production
• Rebalancing local over-production
Energy networks •
Energy Storage •

14
Energy Transition – Storage

15
Circular economy
• RE: >100 yr durability structure
• Efficient & dismountable facade
Adaptable climate systems •
100% recycling batteries •

16
Climate Risk Assessments
• Transition risk
• ESG, energy efficiency
Physical risk •
Flood, earthquake, storm •

17
Climate Risk Assessments – GRESB
• Portfolio level Weighted GRESB analyses
• Peer-specific ‘under scoring’ active company dialogue
Company level analyses versus Peers •
Non-listed: GRESB participation = mandatory •

18
Climate Risk assessment: Flood, Netherlands
• High risk: 0 % exposure
• Mid risk ~ 35 % exposure
• Low risk: ~ 80 % exposure

19
Conviction
Long Term Focus
&
Responsibility
Targets
Invest with Impact
&
ESG-integrated Policies
MN-Pillars
Close Client Dialogue
&
Active Ownership
Real Assets Specific
(Climate) Risk Assessments
&
Enhance Sector Transparancy

20MN - Future proof RA Investing25th of April 2018
Financial & Social Return go hand in hand
ESG-Integration reduces risk

Financial & Social Return go hand in hand
ESG-Integration reduces risk

GRESB | Siemens Resilience Conference
25 April 2018
© Swire Properties Limited

55 GRESB | Siemens Resilience Conference
25 April 2018

25 April 2018

“To be the leading
sustainable development
performer in our industry
globally by 2030”

25 April 2018

S E S S I O N 4
What are
key innovators
working on
right now
in the world
of resilience?
M o d e r a t o r : C h r i s P y k e
R e s e a r c h O f f i c e r
U . S . G r e e n B u i l d i n g C o u n c i l
J o r g e C h a p a
H e a d o f M a r k e t T r a n s f o r m a t i o n
G B C A
C h r i s B r o a d b e n t
D i r e c t o r o f C E E Q U A L a n d B R E E A M I n f .
B R E
J a m e s L o c k h a r t S m i t h
H e a d o f F i n a n c i a l S e c t o r R i s k
V e r i s k M a p l e c r o f t
M u r r a y B i r t
V i c e - p r e s i d e n t , S e n i o r E S G S t r a t e g i s t
D W S D e u t s c h e A s s e t M a n a g m e n t ( U K ) L t d
R i c h a r d L o o k
R e s i l i e n c e C a p a c i t y B u i l d i n g ,
S t r a t e g i c R i s k M a n a g e m e n t a n d
C o n t i n g e n c y P l a n n i n g , M M I E n g i n e e r i n g

Resilience in the
built environment
Jorge Chapa
Head of Market Transformation
Green Building Council of Australia
@jochapa

Who is
the GBCA?
Since 2002, we have driven real change by creating
market-based solutions that empower industry to
embrace sustainable practices.
GBCA is an industry association
dedicated to transforming the built
environment.

What is
Green Star?
From individual buildings to entire communities,
Green Star is transforming our built environment to
create sustainable places for everyone.
Green Star is an internationally recognised
sustainability rating system.

Barangaroo South
Sydney, NSW
World Leadership

Stockland Wetherill Park,
Sydney, NSW
World Leadership

Defining resilience in the
built environment
Business
continuity
Asset
value
People Community

Identify risks
and attach value
Implementation
plan is created
Management
process is
developed
Plan is
implemented over
time
Resilience demands
engagement, planning, and implementation

Critical infrastructure
– Finance
– Food
– Government
– Health
– Space
– Transport
– Water
– Chemicals
– Civil Nuclear
– Communications
– Defence
– Emergency
– Services
– Energy

CEEQUAL (2018)
– Strategy and project management
– Risk and resilience
– Communities and stakeholders
– Ecology and biodiversity
– Land use
– Landscape
– Historic Environment
– Pollution prevention
– Energy use and carbon emissions
– Materials and waste
– Water use
– Transport impacts

Resilience and CEEQUAL (2018)
Res 02
Risk
assessment an
mitigation
Climate change
Flood and run-off
Business continuity
Natural hazards
Intentional threats
Future needs

What will CEEQUAL (2018) reward

BRE Centre for Resilience
‘to provide a place for the sector to research,
learn, develop new standards and create the
next generation of resilient materials, products,
designs and innovations that will ensure the
robustness and longevity of our built
infrastructure.’

BRE Centre for Resilience
• Conducting research in resilience
• Trialling and testing innovations
• Communication and disseminating knowledge
• Developing new training and accreditation
• Creating new standards

Awareness, Skills and Verification
Flood
Resilience
Surveyors
Flood
Resilience
Materials
Verification
Asset
Managers
Awareness
Training
Flood
Resilience
Installer
Skills
Training
Property
Flood
Resilience
Database
http://bregroup.com/expertise/resilience/

Chris Broadbent
Director, CEEQUAL and BREEAM Infrastructure
Chris.Broadbent@bre.co.uk
Chris.Broadbent@ceequal.com
+44 (0)1923 664958
www.ceequal.com www.breeam.com www.bre.co.uk
A628 near Howden Moors in Derbyshire, by Highways England on Flickr | CC BY 2.0
Thank you!!

© Verisk Maplecroft 2018
111Maplecroft.comRisk Resilience Reputation
How well are real estate investors managing ESG & resilience risks?
Answers from a geographic risk dataset
25 April 2018

222Maplecroft.com
Mapping 24 GRESB adaptation categories against underlying risks
Conclusion: across ESG, real estate is least adapted to environmental risks
Environmental Social Governance
Sources: GRESB, 2018; Verisk Maplecroft, 2018
Adaptation vs. risk exposure across the GRESB universe by GRESB adaptation category

333Maplecroft.com
Water
management
Is adaptation adequate to risk at the city level?
London less exposed than NYC & Sydney, but water & climate risk stand out for both
London New York Sydney
Climate change
adaptation
Building-related
H&S & wellbeing
Flooding Other natural
hazards
Transportation
risks
0 10 Risk 0 10 Adaptation
Biodiversity &
habitat

444Maplecroft.com
Who are Verisk Maplecroft?
70+
30+
100
30+40+
40+
5+
198
Independent
research and
proprietary
data
Analysts
Years of data
Economic risk
indices
Commodities
Social risk indicesPolitical/governance risk
indices
Environmental risk
indices
Countries
• Founded in 2001
• Work with institutional investors,
banks and corporates
• Focus on forward-looking holistic
analysis across multiple asset
classes
• The leading global dataset on
country/subnational ESG+P risk
• On-the-ground expert research and
advisory
• Used for risk management and
alpha generation

555Maplecroft.com
Disclaimer
• This report has been prepared by Verisk Maplecroft. The report is intended solely for the benefit of the listeners and its
contents and conclusions are confidential and may not be disclosed to any other persons or companies without Verisk
Maplecroft’s prior written permission.
• The information upon which this report is based comes from our own experience, knowledge and databases. The
opinions expressed in this report are those of Verisk Maplecroft. They have been arrived at following careful
consideration and enquiry but we do not guarantee their fairness, completeness or accuracy. The opinions, as of this
date, are subject to change. We do not accept any liability for your reliance upon them.
Strictly private and confidential

666Maplecroft.com

Engineering a Safer World
Resilience assessment of large
infrastructure
Richard Look, BSc MEPS CBCI
Senior Consultant
Mobile: +44 (0) 7860 841 077
Email: rlook@mmiengineering.com
Web: www.mmiengineering.com

changing perspective of resilience
Traditional
View
Contemporary
View
Pioneering
View
Secure and
Protect
Respond &
Recover
Prevent
Sustain &
Enhance
Integrate
& Adapt
Innovate &
Accelerate

Value
•Financial
•Utility
•Quality
•Chronology
•Social & Narrative
•Environmental
What is valued
•USPs
•Assets & Supporting Systems
•Social Systems
•Operational Systems
•etc
What creates
and protects
that value

Vulnerability
Hazard Path Receptor
Exposure Vulnerability

Demand (Hazard & Exposure)
I n f r a s t r u c t u r e
H e a l t h
N a t u r a l
S e c u r i t y
Te c h n o l o g i c a l
S o c i e t a l
H a z a r d s
EXPOSURE
IM PACT
PROBABILI TY

Scenario Planning Change
Self Drive Cars Electric Vehicles Electronic/ Biometric ID Virtual Reality,
Enhanced Reality
Size and Range of
Aircraft (Space?)
AI
Brexit and Devolution Deregulation Terrorism Automation of the
workforce
Income inequality Skills shortages
Demographic Change -
Aging
Climate Change Globalisation Migration Urbanisation & Housing Pollution, Waste and
Environmental Toxicity

P A R T N E R S
E V E N T P A R T N E R S :
G L O B A L M E D I A P A R T N E R S :
L O C A L M E D I A P A R T N E R :

How resilience translates into opportunity and risk for investors, managers and operators

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Ähnlich wie How resilience translates into opportunity and risk for investors, managers and operators

Ähnlich wie How resilience translates into opportunity and risk for investors, managers and operators (20)

Mehr von GRESB

Mehr von GRESB (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

How resilience translates into opportunity and risk for investors, managers and operators