Climate Risk: Logistics & Industrial Global Outlook

RISK CLIMATE LOGISTICS& INDUSTRIAL

GLOBALOUTLOOK

RECURRENT RISKWITH LOWHIGHVARIABILITY WIND

Globally, wind risks for the most part are quite moderate, and intra-market variability is also quite low. However, there is significant variation between lower risk and higher risk locations. In Asia Pacific, risks are low in locations such as Singapore, Sydney, and Auckland but over four times greater in markets with known typhoon exposure such as Taipei and Hong Kong. Similarly in the U.S., “tornado alley”, encompassing a broad area including Texas, Oklahoma, and Kansas is at a significantly elevated risk compared to the rest of the country. Though it should be noted that even here, the risk is approximately half that of Asia’s most exposed markets. Strategic Advice: • Physical hardening measures may be required, such as removing large signage, strengthening roofs and doors. • Operational considerations are important too. What is safe to do before, during and after a severe wind event? HSE (Health, Safety & Environment) may be an even greater risk.

HIGHEST BUILDING RISK SCORE IN SUBMARKET

AVERAGE SUBMARKET RISK SCORE

LOWEST BUILDING RISK SCORE IN SUBMARKET

100

90

80

70

60

50

40

30

20

10

0

INDIANAPOLIS

NORTHERNNEWJERSEY

MIAMI

CLIMATE RISK: LOGISTICS & INDUSTRIAL GLOBAL OUTLOOK 13

CUSHMAN & WAKEFIELD