Climate Risk: Logistics & Industrial Global Outlook

RISK LOGISTICS& INDUSTRIAL CLIMATE

GLOBALOUTLOOK

CATEGORISING LOGISTICS & INDUSTRIAL CLIMATE RISK To helpwith understanding the types of climate risk being faced, we have categorized them into four broad types. The two key parameters are the time scale over which they are expected to occur and the degree of spatial variability.

ACUTE (shorter-term)

CHRONIC (longer-term)

DROUGHT

FLOOD

HIGH

PRECIPITATION

HAIL

SPATIAL VARIABILITY

WIND

WILDFIRE

COLD

LOW

HEAT

INTERPRETINGTHE CHARTS

Highest building risk score in submarket

LOW CURRENT EXPOSURE WORSENS OVER TIME

HIGH CURRENT EXPOSURE WORSENS OVER TIME

Average submarket risk score

LOW CURRENT EXPOSURE IMPROVES OVER TIME

HIGH CURRENT EXPOSURE IMPROVES OVER TIME

EXTREME RISK.

Lowest building risk score in submarket

IMPROVING << CHANGE >> WORSENING

PRESENT DAY RISK

FUTURE CHANGE RISK

INDEX OF THE SPECIFIC RISK. 0 = NO RISK, 100 =

LOW

<< CURRENT EXPOSURE >>

HIGH

SUBMARKET 1

To show how these risks may apply, we have selected a particular location from our data. This does not indicate the market has particularly high or low risk. A different location has been selected for each risk.

Note: risks are not always directly comparable. For example, a score of 30 for one risk may have different implications compared to the same score for another risk. Generally, we consider risks to be more material as they approach 50, and certainly material between 50–100. While some scores indicate less material risk, there is not always a safe risk level—except at zero.

CLIMATE RISK: LOGISTICS & INDUSTRIAL GLOBAL OUTLOOK

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CUSHMAN & WAKEFIELD