by the Intact Centre on Climate Adaptation at the University of Waterloo made the case for the use of “climate risk matrices” , an industry specific tool that identifies the level of climate risk a business faces and offers solutions for investors and regulators to make better calculated decisions and mitigate future risk. According to the report, several climate change-related risks have now become irreversible, such as intensified flooding, droughts and wildfires.
When an investor is looking to buy into commercial real estate, for example, either as a stock purchase or as a business, one major risk the CRM looked at was extreme heat. The risk mitigation measures it offered were the instalment of an HVAC system designed to deal with extreme heat conditions, an emergency management plan for staff and tenants as well as an emergency backup for potential power outages. In an alternate banking example, flooding was used as one of the varied weather risks.