The construction industry faces multiple sector-specific climate risks and opportunities. For example, concerning physical risks, climate change could lead to elevated ambient temperatures and more frequent severe weather events like floods, cyclones, and wildfires. However, this also presents an opportunity for construction companies to adopt methods and materials that can mitigate these risks while providing added value to customers.

Regarding transition risks, there's a potential for the implementation of a carbon tax, which could raise costs for materials with high carbon footprints. Terrascope worked with Tectus Group, a multinational Swiss company involved in construction, to identify primary emission hotspots in their products and technologies. This empowered them to make informed decisions based on data. Terrascope aided Tectus in quantifying the impact of their innovative construction methods, which can slash carbon emissions by approximately 25% compared to prefabricated concrete elements. This proactive approach could help mitigate the effects of future carbon taxes, effectively turning a risk into an opportunity.

By preparing a TCFD or ISSB disclosure, your company will engage with these issues in a more systematic manner, and thus be better prepared to mitigate risks and seize opportunities.