In collaboration with QIC’s Responsible Investment team, QICRE has been actively working to better understand and manage climate risk. This work includes the co-development of a ‘Climate Change Resilience Study’ with an academic partner to understand the potential physical impacts of climate change on our assets.
Phase 1 of the study involved mapping climate projections over different periods for more than 40 retail and commercial assets in Australia. Work to combine the results of this project with QIC’s climate scenario modelling to build a comprehensive view of portfolio-level climate risk exposure is ongoing.
We are currently undertaking an analysis of all assets and developing a vulnerability assessment that combines:
Work has begun on Phase 2 of the study to understand the impacts of a transition to a low carbon economy. In FY20, we conducted a scenario analysis of our real estate assets to enhance our understanding of climate change transition risks and opportunities.
As part of our analysis, we developed three base climate change scenarios:
Over the next year, we are planning a range of initiatives based on the findings of the scenario analysis. These initiatives will ensure that risks are integrated into existing management practices, and will allow us to track and review metrics, identifying which scenario is most likely and how this will impact our assets.
Additional information on our work on climate change, transition risk and opportunities, as well as our full Taskforce on Climate-related Financial Disclosures report, is available in the 2020 QIC Sustainability Report.