A Framework for Measuring and Reporting of Climate-related Physical Risks to Built Assets

In August 2021, UKGBC launched the Measuring and Reporting Climate-related Physical Risks task group in response to the upcoming mandatory disclosure of climate-related risks. For large organisations and financial institutions within the UK, this comes into force from April 2022 in line with the Task Force on Climate-Related Financial Disclosures’ (TCFD) recommendations. If successful, this requirement is likely to expand to include smaller organisations by 2025. For asset-owning organisations this will include a requirement to consider, measure, and report any risks posed by physical climate-related risks, alongside reporting transitional risks from reducing greenhouse gas emissions.   The guidance includes detailed information on the physical risk assessment process; a methodology for built asset scale; and a standalone reporting framework which can be used to support the preparation of TCFD disclosure reports. By providing a methodology for the built environment, it is hoped that this report and framework will address the current lack of consensus on physical risk disclosure methodologies.