Using the geospatial intelligence platform and climate data from SustGlobal, the European Sustainable Hospitality Club team provided a 360 degree overview of how physical climate risks could cause disruption to hotel operations and what defined what actions could be taken to mitigate and anticipate negative impacts.
What is Geospatial Intelligence?
By using images and geospatial information it is possible to describe, assess, and visually depict physical features and activities on Earth.
How can the hospitality industry protect its assets from climate-related risks?
The impacts of biodiversity loss and climate-related risks present a number of structural challenges for businesses looking to develop, operate, or refurbish large commercial properties. For example, the hospitality industry whose water usage is extremely high is particularly vulnerable to issues arising from water stress areas or drought. This creates both operational and supply chain risks.
In the case study, we were keen to identify to what extent precise climate risk data could inform asset owners to suggest in our recommendations preventive actions, proactive solutions they could offer locally where the property is located, finding the balance between social equity and environmental protection, by implementing sustainability strategies.
What are climate-related risks?
An organization's climate-related risk refers to the potential negative effects of climate change. There is the potential for adverse effects on lives, livelihoods, health status, economic assets, social assets, services (including the environment), and infrastructure due to climate change.
Climate risks can be viewed in the context of Risk Management as a collection of fundamental risks or underlying causes carried out or realized in a specific manner.
Climate-related risks must be managed as they form a more complex system. Operators, investors, and brands can assess climate-related and physical risks with frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD).
It is also important to manage transitional risks. Business transition risks result from societal and economic shifts toward a low-carbon and climate-friendly future. Among these risks are policy and regulatory risks, technological risks, market risks, reputational risks, and legal risks.
We partnered with Sust Global’s solution
Sust Global’s geospatial intelligence helped us to build a sustainability and risk mitigation strategy for a specific asset we had been hired to advise on. Using their climate data, we provided a 360-degree overview of how physical climate risks, particularly sea level rise and water stress, could cause disruption to operations and what action could be taken to mitigate the most severe impacts.
Physical climate risk assessment
Satellite-powered climate analytics provide a high level of precision into the future risk of wildfires; flooding; cyclones; sea level rise; drought and heatwaves. Annual and multi-decadal climate risk projections enable scenario analysis across multiple time horizons.
We developed an action plan that included recommendations to change shower faucets to prevent leakage and the use of water reuse systems and technology on-site in the asset.
Sust Global’s data has the capacity to support the asset managers we advise by providing value at risk metrics across whole portfolios – demonstrating how capital is and could be impacted by climate-related risks.
Sust Global’s data will also inform our investor community about hospitality assets’ value at risk due to climate change giving them unique intelligence to factor into their decision-making.
Read more about the case study here.
https://www.sustglobal.com/sustainable-resources-climate-data/
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