Climate Risk: Logistics & Industrial Global Outlook

RISK CLIMATE LOGISTICS& INDUSTRIAL

GLOBALOUTLOOK

CHRONICRISKWITH LOWSPATIAL VARIABILITY HEAT / COLD

Heat and cold impacts tend to be more uniform over wider areas, making temperature somewhat more predictable. This means there are notable, and obvious, differences between higher and lower-latitude locations as well as between different times of the year. The variations within the U.S. and Europe are much more significant. For example, southern markets in the U.S. (Dallas) are more heat exposed, while those in the west (Salt Lake City) are more cold-exposed. Others are exposed to both such as Nashville and Atlanta, as well as continental Europe. In contrast, the focus in Asia Pacific is much more skewed toward heat. More temperate locations need to plan for periods of both heat and cold, while others outside of this temperate band are more likely to experience one or the other. However, over a longer time period, for example through to 2050, these underlying risks are forecast to change. Heat hazards are forecast to increase, with the inverse therefore likely for cold-related hazards, though periods of extreme or damaging cold could still occur. Strategic Advice: • Resizing or rethinking HVAC strategies will be needed, particularly for cold storage or data centers. • In heat-exposed locations, rooftop insulation represents strong potential payback, particularly when considering avoided downtime or workforce impacts. • Colder locations may require operational changes to handle extreme weather, or capital changes to weatherize electrical or other infrastructure.

HEAT

IMPROVING << CHANGE >> WORSENING LOW

<< CURRENT EXPOSURE >>

HIGH

EUROPE SUBMARKETS

U.S. SUBMARKETS

APAC SUBMARKETS

COLD

IMPROVING << CHANGE >> WORSENING LOW

<< CURRENT EXPOSURE >>

HIGH

EUROPE SUBMARKETS

U.S. SUBMARKETS

APAC SUBMARKETS

CLIMATE RISK: LOGISTICS & INDUSTRIAL GLOBAL OUTLOOK

11

CUSHMAN & WAKEFIELD