Climate change means assets are increasingly being affected by unpredictable and extreme conditions and are being placed at a heightened risk.
Areas that were once considered to be effectively risk free of flooding, like Idalia in North Queensland, incurred damages totalling over $887 million during the 2019 monsoon. Coastal erosion around Australia has placed an estimated $88 billion worth of properties at risk. And the 2020 bush fires that many claim were a direct result of climate change have cost Australians over $100 billion in damages and loss.
Other variabilities and risks include changes to building and development laws. In response to a greater need for environmentally sound and sustainable building practices, all new buildings must now comply with the National Construction Code for energy efficiency in their state.
New homes and renovations must include energy efficiency and water efficiency features aimed at helping the home owner save money, and reducing the demand on natural resources. As an even greater focus is placed on the sustainable building practices, councils and government agencies will continue to apply greater restrictions that require clear reporting of assets used on new constructions.