TCFD risks and opportunities

Type

Topic

#

Climate-related risk

Relevance to Heijmans

Transition

Policy and legislation

1

Higher price for GHG emissions

M

Will eventually become visible in charging on of purchased products

2

Improved emissions reporting obligations

M

Heijmans already reports according to standards

3

Increasing regulation related to limitation of greenhouse gas emissions

H

Immediately visible when purchasing new equipment and in additional requirements municipalities in construction projects

4

Mandates for and regulation of existing products and services

M

Part of regular tenders

5

Exposure to legal cases

L

Heijmans is one of the frontrunners, which means risks are lower, management systems and certifications are in place

Technology

6

Replacement of existing products and services by lower emission options

L

New technologies are already part of our designs

7

Unsuccessful investments in new technologies

M

Heijmans wants to be at the forefront of equipment procurement. Part of investment monitoring. Heijmans is constantly on the look out for more sustainable and smarter materials and solutions

8

Costs related to switch to lower emission technology

H

Emission-free construction demands relatively high investment in new equipment

Market

9

Changing behaviour of clients

L

Heijmans is able to respond to the changing demand, although not all clients are as far yet

10

Uncertainty in market signals

M

Firm commitment by public sector market, though uncertainty on regulatory front

11

Increased cost of raw materials

H

In particular by passing on CO2 pricing and longer supply routes

12

Declining availability of raw materials

M

Not necessarily related to climate risks

Reputation

13

Shifts in consumer preferences

L

Heijmans' designs can meet demand

14

Stigmatisation of the sector

L

Many initiatives and appreciation visible

15

Increased concerns of stakeholders or negative feedback from stakeholders

L

Good contact with stakeholders

Physical

Acute

16

Extreme water levels rivers

M

Previous situations managed logistically, though possible price risk and higher insurance costs

17

Increase in heavy rainfall

M

Water damage construction works is still relatively limited, but it does affect the construction process.

18

Increasing heat waves

L

Relevant for employability of employees and continuity of projects, can be managed with measures

19

Increasing forest fires

L

Is more relevant in nature areas than built environment

20

Increasing high winds and storms

M

Damage to construction sites and buildings due to windstorms (usually insurable)

Chronic

21

Changes in rainfall patterns and extreme variabiliy in weather patterns

L

Mostly long-term measures possible

22

Rising sea levels

L

Permits for construction in certain areas

23

Rising average temperatures

L

Measures possible in design and required in regulation.

24

Changing ecosystems (including biodiversity)

L

No relevant impact on direct operations, is an opportunity for service delivery. Emergence of persistent exotic species

L = Low risk/opportunity M = Medium risk/opportunity H = High risk/opportunity

Type

#

Climate-related opportunity

Relevance to Heijmans

Efficient use of resources

1

Use of more efficient transport modes and production and distribution processes

M

Focus on industrialisation and sustainable mobility

2

Use of recycling

M

Great deal of attention in talks with suppliers

3

Switch to more efficient buildings

H

Essential part of new building design and renovation

4

Reduced water use and consumption

L

So far less relevant in Dutch context

Energy sources

5

Use of lower emission energy sources

H

Application of products and services in the built environment, such as development of electrcity grid and underground infrastructure.

6

Use of supporting policy incentives

M

Part of business cases, use of subsidies

7

Use of new technologies

M

Standardisation of use of heat pump technologies and alternative services

8

Participation in CO2 market

L

So far no business models that can convert energy savings into carbon credits

9

Shift towards decentralised energy generation

H

Many solutions available for individual homes and clusters of neighbourhoods

Products & services

10

Development and/or expansion of low-emission goods and services

H

Both in housing and building designs and energy supply. Opportunities due to network expansion (electricity, H2)

11

Development of climate adaptation and insurance risk solutions

H

In particular, building dykes, modifying sewage systems and water storage in cities.

12

Development of new products or services through R&D and innovation

M

Heijmans' role is more a system integrator and launching client than an innovator

13

Potential to diversify business activities

M

Mostly expansion of existing products and services

14

Shift in consumer preferences

H

Potential to provide clients with sustainable solutions

Markets

15

Access to new markets

H

Primarily the energy market, development, management and maintenance systems/pipes

16

Use of government incentives

H

Contribution to investments in sustainable equipment and renewable energy systems, often indirectly (renovation)

Resilience

17

Participation in renewable energy programmes and adoption of energy efficiency measures

H

Various joint ventures (see also overview Green Deals and collaborations)

18

Resource substitution/diversification

M

Primarily in the renovation market, switch from gas to electricity

19

Green financing

M

There will be opportunities, but often not a decisive factor in the business case. We will continue to investigate this

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