2020

Vulnerability analysis of two real estate portfolios

Resallience - Vinci

Country – France and Australia

Objective of the climate change vulnerability analysis for real estate assets in France and Australia

In the context of climate change, it is essential to assess the impact of this phenomenon on real estate assets, in order to anticipate the financial risks and vulnerabilities involved. This vulnerability study has been specially developed for properties located in France and Australia, two regions with different climatic conditions that are vulnerable to extreme weather conditions.

This approach aims to provide asset owners and managers with an accurate understanding of the impact of climate change on the value and integrity of their buildings in the future. In order to achieve this, the vulnerability analysis is divided into two main steps: the creation of a vulnerability matrix, and then the assessment of building elements according to future scenarios for the Vinci company.

Phase 1: Co-construction of a vulnerability matrix with the customer

To begin this vulnerability analysis, it is necessary to create a customized vulnerability matrix with the customer. It is crucial to take this step in order to better understand the specific nature of the business, the assets concerned and the climatic risks they face. Indeed, each building stock has its own specific characteristics which impact on its reactivity to climatic hazards, such as the type of construction, its location, its exposure to meteorological phenomena and even its use can play a decisive role.

The co-construction of this matrix will enable us to define the key elements for each asset according to their location and exposure to hazards such as floods, heat waves, forest fires (especially in Australia), storms or drought episodes. This collaboration with the customer offers the advantage of structuring information in a way that accurately reflects the customer’s needs and priorities, while taking into account the financial and operational aspects that are essential to their business.

Phase 2: Matrix analysis of building component vulnerability

After creating a specific vulnerability matrix, the second phase consists of a matrix analysis of the vulnerabilities of the various building components. This step is based on climate projections for a future horizon, taking into account applicable socio-economic scenarios. The aim is to project how each building component – from foundations to roofing, including heating, ventilation and air-conditioning (HVAC) systems – could be affected by climate change.

The matrix analysis approach is based on climate change scenarios, and includes factors such as the rise in average temperatures and the frequency of extreme weather events. Thanks to these scenarios, building owners and managers have a better understanding of the durability and resistance of their buildings. A warming of 1.5°C or 2°C, for example, could have a considerable impact on air-conditioning systems in Australia, while in France, buildings could need to be reinforced to cope with more violent storms and heavy rainfall.

The analysis also takes into account economic dynamics, including the potential increase in maintenance costs in the context of more extreme climatic conditions. For example, a building stock in a region prone to heavy rainfall could require structural reinforcement work to avoid costly deterioration.

Why conduct a vulnerability analysis?

Climate change vulnerability analysis is a key component of our climate change data service, designed to support property managers in their adaptation and resilience strategies. With clear information and a well-defined vulnerability matrix, owners can make informed decisions about investments to strengthen buildings in the face of climate risks.

In France as in Australia, where the climate is increasingly unpredictable, this approach guarantees the sustainability of real estate assets and ensures adequate protection against the impacts of climate change. Whether it’s a question of improving insulation capacities, reinforcing building structures or adapting HVAC systems, this analysis provides recommendations tailored to the specific features of each region and to customer expectations. Ultimately, the aim is to help managers optimize their resources and minimize the costs associated with climatic degradation, while ensuring the safety and well-being of occupants.

Example of a vulnerability analysis :

In conclusion, this climate change vulnerability analysis for building stock offers a proactive, data-driven vision for anticipating the financial impacts of climate hazards. Thanks to a two-phase approach – from the co-construction of a vulnerability matrix to the analysis of building components – this study enables us to better understand and manage the risks associated with climate change, thus contributing to the sustainable and resilient management of real estate assets.