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Case Study, Environment | Sep 04, 2018

Preparing for a changing climate

Climate change and its impact on investments are an increasingly important focus of QIC’s Responsible Investment framework, with the potential to impact a wide range of asset classes and investments.

In 2017, QIC commenced a detailed Climate Change Resilience Study to understand the potential physical impacts of climate change across the real assets we invest in.

Phase 1: Complete

Involved mapping the climate projections over different periods for more than 40 retail and commercial assets in Australia, to:

  • understand the climate projections for the various regions throughout Australia where assets are located
  • develop a high-level risk screening process for each asset based on historical exposure to extreme weather events
  • facilitate the informed prioritisation of further action to manage natural hazard and climate adaptation risk.

Phase 1 of this study: 

  • Researched and assembled all the regional climate change projections for the various regions throughout Australia where QICGRE assets are located.  
  • Selected projections using a pragmatic climate modelling pathway, so practical and realistic design and operational advice can ultimately be given.
  • Aligns with industry standards and global emissions targets, as well as the Australian Government’s commitment under the United Nations Climate Change Agreement - Paris (2015) to cap global warming below 2 degrees Celsius by the end of the 21st century, compared to pre-industrial levels.

Phase 2: Underway

Aims to provide detailed understanding of the existing level of resilience at asset level to the projected climate changes identified in Phase 1. It involves the co-development of a climate resilience assessment process with an academic partner, with this process currently in development through a pilot.

Assets have been prioritised based on the results of Phase 1, as well as a screening questionnaire distributed to QIC asset managers to understand the historical sensitivity of the site to natural hazards such as flooding, and the operational impacts suffered.

Once this work is completed, it is envisaged the finalised process will be repeatable across asset classes, allowing us to implement it when considering any potential future acquisitions.

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