Physical Risk Type Primary Risk Driver Potential Impacts Timeline Potential Mitigation Measures Acute Risks Tropical Cyclone More frequent and severe tropical cyclones • Increase in asset structural damage • Increase in insurance premiums and deductibles • Increase in operation (e.g. business interruptions) and repair costs (e.g. structural repairs) Short- to long- term • Regular site assessments checks for building condition assessment River Flood Property damage in areas with a high risk of flooding • Increase in asset structural damage • Increase in insurance premiums and deductibles • Potential for reduced availability of insurance for assets in river flood-prone areas • Increase in operation (e.g. business interruptions) and repair costs (e.g. structural repairs) Short- to long- term • Properties are expected to have regular site assessments completed by our insurer, and/or building condition assessment, and where applicable recommendations for protection measures Storm Surge More frequent and extreme storms • Increase in asset structural damage • Increase in insurance premiums and deductibles • Increase in operation (e.g. business interruptions) and repair costs (e.g. structural repairs) Short- to long- term • Regular site assessments for building condition assessment • Emergency management planning • Minimise downtime by using on-site backup power generators Chronic Risks Heat Stress Extreme heat conditions • Reduce employee and tenant productivity (e.g. heat illness, worsened health risks from chronic conditions) • Increase in operational costs (e.g. increase in cooling demand leading to higher electricity costs) Short- to long- term • Identify opportunities to improve cooling efficiency and/or costs through capital upgrades, building commissioning, and operating procedures Precipitation Stress More evaporation and transpiration due to warmer temperatures resulting in more moisture in the air • Increase in asset structural damage (e.g. mould growth) • Increase in insurance premiums • Increase in operation and repair costs Short- to long- term • Regular checks to ensure that roof structures are able to withstand heavy rain and snow loads • Emergency management planning Subsidence Prolonged water exposure due to flooding and/or sea level rise • Increase in asset structural damage • Increase in insurance premiums and deductibles • Increase in operation (e.g. business interruptions) and repair costs (e.g. structural repairs) Short- to long- term • Regular site assessment for signs of subsidence • Ensure proper grading around buildings' foundation ANNUAL REPORT 2024 | 79
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