Climate Change

The impact of climate change is expected to shape the construction industry in 2023, with an increased focus on reducing carbon emissions and building sustainable infrastructure. Construction companies will need to acknowledge that climate risk has two dimensions - physical risk and carbon emissions. The physical risk relates to the damage that extreme weather conditions can cause to buildings and infrastructure, while the carbon emissions dimension relates to the impact of construction activities on the environment.

With an increased focus on sustainability, construction companies will need to adopt new approaches to reduce their carbon footprint. This may involve the use of sustainable building materials, such as timber or recycled materials, and incorporating energy-efficient designs into buildings. The industry will also need to develop strategies to mitigate climate risks, such as designing buildings that can withstand extreme weather conditions, including floods and bushfires.

In addition to this, construction companies will need to consider the impact of climate change on their supply chains. As extreme weather events become more frequent, supply chains may be disrupted, leading to delays and increased costs. Companies will need to work with suppliers to ensure that they are resilient to climate risks and have contingency plans in place.

In conclusion, the construction industry is expected to face increased pressure in 2023 to address the physical and financial risks of climate change. Companies will need to adopt new approaches to reduce their carbon footprint, use sustainable building materials and designs, and develop strategies to manage and mitigate climate risks. By doing so, the industry can build sustainable infrastructure that is resilient to the impacts of climate change and help to mitigate its contribution to global warming.