Managing climate risks for critical assets
Helping asset owners and investors reduce vulnerability to climate change
Climate change and associated extremes can severely impact major social and industrial sectors through disruption of assets, infrastructure and systems. Managers responsible for assets and investments increasingly face the need to evaluate climate risks.
Our focus is to turn climate data into actionable information for response and investment needs. Through targeted, site-specific modelling, we translate climate projections into tangible hazards and their associated economic impacts. We support the prioritization of adaptation strategies using various tools, including cost-benefit analysis.
Our work is guided by DNV GL ADAPT, a framework for risk-based climate adaptation. The modularity of ADAPT allows us to address selective needs concerning exposure, vulnerability or decision making.
In the exposure assessments, we model and downscale climate projections at the scale of interest to identify and map events that have potential to cause service disruptions and material damages. We further explore how the frequency of the identified hazards will be affected by climate change. We consider both extreme weather events and longer term changes in the climate.
The vulnerability assessments evaluate the possible consequences of specific hazards by monetizing climate-related damages. We model several hazards such as drought, storm surge and landslides and use probabilistic models to estimate expected future economic losses.
In the decision-making module, we develop cost-effective adaptation strategies based on risk reduction potential and cost-benefit principles.
The results of our ADAPT-based risk management approach help to better understand extreme weather and climate information, relevant uncertainty, potential impacts and systemic vulnerabilities, and ultimately supporting planning and implementation of adaptation solutions and asset upgrades.