In his opinion article, David Jenkins, CEO of the Institute of Public Works Engineering Australasia (IPWEA), discussed climate change’s significant implications for asset management.
He cited some of the extreme weather events that happened in the past decade that cost billions of dollars in damages.
He said that building resilience into infrastructure is vital to address this problem. Building climate resilience means the infrastructure and system can maintain its function while absorbing stresses that climate change causes.
Climate resilience should be built into the planning phase, and early mitigation measures will save five times the cost of repairs, he added.
Jenkins referred to the McKinsey & Company article, “Climate resilience: Asset owners need to get involved now.” He cited: “asset owners must start by answering fundamental questions about the particular risks of their unique geography, calculate costs of assets loss or damages as well as business disruption, decide how to protect critical components, and prioritize strategies with the greatest return of investment.”
The article recommends that infrastructure asset owners should use a range of adaptation strategies to deal with climate-related risks. Climate adaptation measures should apply a layered approach, as mentioned in the article.
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