Greencap Eco-News  |  Issue 7  |  May 2022

Impacts of Increased Extreme Weather Events

As part of Greencap's commitment to all things sustainable, we are pleased to send this regular communication where Greencap's own Eco-Sustainability Committee team members provide interesting facts, quick eco-tips, and recent environmental news.

This issue includes boatloads of interesting information on climate change and associated flooding impacts in Australia.

Did you know that by 2030, 1 in 25 properties will be ‘high risk’, of annual damage from extreme weather and climate change - making them effectively uninsurable? 

2022 QLD / NSW Flooding Costs

Natural disasters result in significant human, emotional and property costs.
The human cost of the recent 2022 flooding in Queensland and New South Wales was immense and the emotional cost is incalculable.  As communities begin the long process of rebuilding, worrying trends are also apparent in the property costs with implications for property owners and managers in the private and commercial sectors. 

The property losses of the March 2022 flooding in Queensland and New South Wales at time of writing are already one of the most expensive flood events on record and the fifth most costly disaster ever in Australia with a $3.35 billion bill calculated by 197,000 claims for damages to personal property, personal contents and commercial property.

- Insurance Council of Australia, News Release, 03/05/2022

Flood Related Losses (1971-2022) normalised to 2017 values

Domestic and Commercial Property Insurance Claims (Sum $)

Data source: Insurance Council Australia, “Historical Catastrophe Data – March 2022

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“Approximately 520,940 properties, or one in every 25, will be ‘high risk’, having annual damage costs from extreme weather and climate change that make them effectively uninsurable by 2030.  In addition, 9% of properties (1 in 11) will reach the ‘medium risk’ classification by 2030, with annual damage costs that equate to 0.2-1% of the property replacement cost.
These properties are at risk of becoming underinsured.”

NASA Imagery 2022 derived from ESA Sentinel-1 satellite observations taken of Southeast Queensland

While we don't need to wait to see the potential impact of extreme weather events across the country, increased risk of such events means increased costs of maintenance, repair,  replacement and insurance for properties – our homes, workplaces and commercial buildings.

The top 10 most 'at-risk' federal electorates (by 2030):

- Uninsurable Nation: Australia’s Most Climate-Vulnerable Places (03/05/2022)

So, while recent media focus has targeted largely the private property sector, the commercial property sector is also likely to see similar increases in insurance premiums and costs, increasing pressure on an already competitive market triggered by tightening planning/development approvals and potential increased construction costs from risk-mitigation changes to national building codes.
In major cities, this will be compounded by COVID-19 triggered pressures.

Built properties damaged by natural disasters can expect delays in repairs and reconstruction due to shortages in materials and labour with knock-on effects for property managers and tenants.  Proposed construction projects may face increased delays and potential additional costs if rezoning or relocation approaches are adopted.

Social and political legitimacy is giving further confidence that adaptation options will result in stable and dynamic pathways by the potential “lock in of decisions, system dependencies and the potential for cascading impacts.”
 

Adaption Options and Barriers

While ambition, scope and progress of the adaptation process has increased across governments, non-government organisations, businesses and communities, adaptation progress is uneven, due to gaps, barriers and limits to adaptation, and adaptive capacity deficits. 

Barriers include:

• Lack of consistent policy direction
• Competing objectives
• Divergent risk perceptions and values
• Knowledge constraints
• Inconsistent information
• Fear of litigation
• Up-front costs
• Lack of engagement, trust and resources

For ecosystems at critical thresholds, further climate change may cause irreversible damage, with limited scope for adaptation. Limits to adaptation in human systems include thermal thresholds and safe freshwater and the inability of some low-lying coastal communities to adapt in-place.

The report also identifies critical “enablers” including a shift away from purely reactive measures towards anticipatory planning, integration and coordination across levels of government and sectors.
 

Illustrative adaption pathway for risk to natural and human systems in low-lying coastal areas due to sea-level rise.

Learn more -  IPCC Sixth Assessment Report Fact Sheet – Australasia, February 2022

The recent QLD/NSW floods present multiple challenging situations, and the risks in managing these scenarios are complicated. Individuals and businesses with flood-impacted properties can visit the Greencap Flood Response page as a guide for safety considerations following a flood, tips on drying out a property following a flood, general mould FAQs and more.

In addition to providing expert services for our clients, Greencap's Community Engagement Committee has also been fundraising to help people impacted by the floods in Queensland and New South Wales. Communities have been devastated, lives have been lost, and thousands of people have been displaced and left with nothing. Recovery is going to take a long time.

Through funds raised from our IT equipment recycling program, Greencap have donated 25  ‘Back to School’ packs (valued at over $2,700) through our nationally aligned cause The Australian Literacy & Numeracy Foundation to assist children who have lost everything in the floods.

A Greencap GIVIT fundraising page has also been set-up with over $2000 already raised to date (thanks to Greencap funds matching dollar for dollar the $1,005 raised internally by team members and contacts prior to 30 April 2022).

Click on the link below to donate today.

Donations will go to GIVIT's Storms and Flooding Appeal, and will be used to purchase essential items and services for those affected. Publicly donated money received is used to buy exactly what GIVIT determines is most needed, when it’s needed. Where possible, GIVIT buys locally to support the economic recovery of impacted regions.

All donations over $2 are tax deductible