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 CO₂market	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