How facilities managers are protecting against climate risks

With today’s buildings increasingly feeling the effects of a changing climate, facilities managers are facing the dual challenges of improving resilience and ensuring the right emergency plans are in place.

Rising temperatures, prolonged droughts, more frequent and intense storms and heavier flooding are already putting building infrastructure and operations to the test.

By 2050, over 90% of the world’s largest companies will have real estate financially exposed to climate risks, according to S&P Global.

“Mitigating climate risks in real estate is becoming an urgent priority as companies seek to protect business continuity and minimize the costs of disruption,” says Glenn Milner, Senior Climate Advisor at JLL. “The changing regulatory landscape also demands action to make buildings more resilient.”

As climate risks threaten building operations, facilities managers are upping maintenance efforts.

“There’s intensifying pressure on preventative maintenance as facilities managers focus on maintaining a safe, stable working environment,” says Jessica Rose, Global Sustainability Integration Lead at JLL. “Testing is evolving in terms of frequency and focus areas and there’s ongoing evaluation around whether existing building safety standards are sufficient for today’s climate.”

Prolonged heatwaves, for example, cause concrete and metal to repeatedly expand and contract, requiring more monitoring of structural integrity. Hotter environments also increase the need for air-conditioning for people inside, straining HVAC systems.

“As companies strive to maintain their people’s health and comfort through increasing temperatures, systems maintenance will become increasingly critical,” says Harris Karim, Senior Sustainability Product Director at JLL. AI tools such as Hank, which continuously optimizes HVAC equipment, potentially reducing energy consumption and costs by 20%, are also helping.

In flood-prone regions where heavy water infiltration can damage basement equipment, companies are relocating critical systems or adding sump pumps, installing flood doors and upgraded drainage systems. New York’s Hudson Yards development, for example, can collect nearly 10 million gallons of stormwater every year from roofs and plazas and use it for watering its green spaces.

In contrast, in water-scarce regions where dry, contracting soil can impact building foundations, damage pipes, misalign floors and impact biodiversity efforts, smart irrigation systems and water recycling are coming into greater focus.

More companies are also re-evaluating water use in their operations. For example, South-African based Firmenich implemented water-efficient plumbing to use 84% less water in lavatories in its Johannesburg headquarters, as well as a rainwater harvesting system to reduce reliance on municipal water.

“Facilities managers are more cognizant of the need to manage energy and water consumption efficiently, driven by rising utility costs, occupier demands for reporting, and the growing importance of resource management in the face of climate change,” says Rose.

In addition to implementing resilience measures, companies are evaluating existing emergency procedures against mounting climate risks.

“In drought-prone regions, water audits are helping to establish usage and potential solutions prior to and during an emergency,” says Milner. “Resilient operations rely on monitoring costs, spending and damages related to climate impacts at the facility level. Establishing a baseline for how climate-related changes affect an organization is an important aspect in response plans."

Robust facilities management strategies should also consider a company’s regional infrastructure and supply chain, mapping critical systems across different assets and quantifying local risks to establish focus points within response plans.

“When analyzing where to allocate limited funds, organizations must identify their most exposed buildings and their potential impacts to prioritize key requirements for keeping business running,” says Karim. “Each building needs a tailored approach, with engineering and design teams assessing the right solution.”

Technology offers growing support for planning around volatile climates. “With the proliferation of smart building platforms, facilities managers can leverage weather data and AI modelling in predictive maintenance, projecting long-term impacts to make proactive adjustments, which also drives cost savings,” says Jim Whittaker, Head of Global Engineering Product at JLL.

Applying data about future climate events to existing hazard vulnerability analyses can also influence how – and how frequently – contingency plans are updated.

Collaboration is another key element in climate risk planning – and not just between facilities managers and building owners.

Strong partnerships with building health and safety teams, local jurisdictions and first responders are essential for ensuring rapid action during and after extreme weather events. “Collaboration with local agencies significantly enhances preparedness and response effectiveness,” says Whittaker.

Strengthening resiliency in large corporate campuses can also support municipal emergency planning. For example, in Portland, Oregon, which lies on an earthquake fault line, a large corporate headquarters serves as an emergency evacuation hub.

“Following Hurricane Sandy, there’s been a significant push for resiliency in large campuses, with growing expectations for them to maintain water and energy availability through natural disasters,” says Rose.

While climate risk is starting to influence location strategy - one U.S. national bank factored in hurricane risk when considering where to open new branches in the Southeast – for many facilities managers it’s about protecting the buildings they’re working in today.

The stakes are getting higher with climate risks projected to spike insurance costs by up to 80%, with other costs to maintain business as usual and remain compliant also set to rise, according to JLL’s Climate Inflection Point research.

Yet many companies are lagging behind. Only one in five has a resiliency plan in place to adapt to the physical risks of climate change, according to S&P Global. Real estate performs slightly better, with 26.5% adapting for physical risk.

“Organizations that don’t assess climate risks and implement climate mitigation and adaptation strategies will face disruption, damages and higher maintenance costs,” says Milner.

For facilities managers, it means taking action sooner rather than later, says Rose.

“By planning ahead for climate risks while actively seeking to optimize resource use, facilities managers not only protect buildings but safeguard the continuity and sustainability of businesses and their employees through the changing climate,” she concludes.