Engineering Inc - July/August 2019 - 44

INTHENEWS

BlackRock Institute Report
Assesses Climate-Related Risks

I

nvestors have failed to price
in the impact of climate
change in many of their
long-term investments,
according to a new report,
"Getting Physical: Scenario
Analysis for Assessing
Climate-Related Risks," by
the BlackRock Investment
Institute. Looking at three
long-lived asset classes-U.S.
municipal bonds, commercial
mortgage-backed securities
and utilities-the report finds
potentially trillions of dollars in
unaccounted risk.
There are good reasons for this
failure. First, the effects of climate
change are slow and may seem
beyond the term of the investment.
Second, climate risks are hard to
model geographically, especially

44

ENGINEERING INC.

JULY / AUGUST 2019

Residents of
Fort Lauderdale
walk through a
flooded street
that was caused
by seasonal high
tides and rising
sea levels due to
climate change.
South Florida
is projected to
continue to feel
the effects of
climate change,
and many Florida
cities have
begun preventive
maintenance
programs that
include installing
pumps or building
up sea walls to
try to combat the
rising oceans.

Some
58 percent
of metropolitan
statistical areas
face climaterelated GDP
hits of 1 percent
or more by
2060-2080
under a 'no
climate action'
scenario

down to the asset level, which is critical for
investors. Finally, many use outdated data,
such as flood-zone maps that are no longer
accurate due to rising sea levels.
"Recent advances in climate and data science
make it easier to overcome these hurdles and
separate the signal from the noise," according
to the report.
BlackRock teamed with the Rhodium
Group, which utilizes big data in its research,
to zoom in on the physical risks posed by
climate change on a 12-mile-by-12-mile level
across the country.
While Rhodium created 21 scenarios based
on various global responses to climate change,
the report concentrates on the "no-climate
action" scenario. According to the report, "We
see this as a tough, but plausible, scenario for
stress-testing long-dated assets that can be
located with precision."
Of concern is the $3.8 trillion U.S. municipal bond market. "Some 58
percent of metropolitan statistical areas (MSAs) face climate-related GDP



Engineering Inc - July/August 2019

Table of Contents for the Digital Edition of Engineering Inc - July/August 2019

Engineering Inc. - July/August 2019
Contents
From Acec to You
Market Watch
Legislative Action
The Private Side
From A Global Perspective
Navigating A New Future
Protecting Your Firm Against Cyberattacks
Pli Market Remains Steady
A Half-Century Of Caring
2019 Acec Member Survey
Risk Management
In The News
Mergers And Acquisitions
Members In The News
Business Insights
Engineering Inc - July/August 2019 - Intro
Engineering Inc - July/August 2019 - Engineering Inc. - July/August 2019
Engineering Inc - July/August 2019 - Cover2
Engineering Inc - July/August 2019 - T1
Engineering Inc - July/August 2019 - T2
Engineering Inc - July/August 2019 - T3
Engineering Inc - July/August 2019 - T4
Engineering Inc - July/August 2019 - T5
Engineering Inc - July/August 2019 - T6
Engineering Inc - July/August 2019 - T7
Engineering Inc - July/August 2019 - T8
Engineering Inc - July/August 2019 - Contents
Engineering Inc - July/August 2019 - 2
Engineering Inc - July/August 2019 - 3
Engineering Inc - July/August 2019 - From Acec to You
Engineering Inc - July/August 2019 - 5
Engineering Inc - July/August 2019 - Market Watch
Engineering Inc - July/August 2019 - 7
Engineering Inc - July/August 2019 - Legislative Action
Engineering Inc - July/August 2019 - 9
Engineering Inc - July/August 2019 - The Private Side
Engineering Inc - July/August 2019 - 11
Engineering Inc - July/August 2019 - From A Global Perspective
Engineering Inc - July/August 2019 - 13
Engineering Inc - July/August 2019 - 14
Engineering Inc - July/August 2019 - 15
Engineering Inc - July/August 2019 - 16
Engineering Inc - July/August 2019 - 17
Engineering Inc - July/August 2019 - Navigating A New Future
Engineering Inc - July/August 2019 - 19
Engineering Inc - July/August 2019 - 20
Engineering Inc - July/August 2019 - 21
Engineering Inc - July/August 2019 - Protecting Your Firm Against Cyberattacks
Engineering Inc - July/August 2019 - 23
Engineering Inc - July/August 2019 - 24
Engineering Inc - July/August 2019 - 25
Engineering Inc - July/August 2019 - 26
Engineering Inc - July/August 2019 - Pli Market Remains Steady
Engineering Inc - July/August 2019 - 28
Engineering Inc - July/August 2019 - 29
Engineering Inc - July/August 2019 - 30
Engineering Inc - July/August 2019 - 31
Engineering Inc - July/August 2019 - 32
Engineering Inc - July/August 2019 - 33
Engineering Inc - July/August 2019 - 34
Engineering Inc - July/August 2019 - 35
Engineering Inc - July/August 2019 - A Half-Century Of Caring
Engineering Inc - July/August 2019 - 37
Engineering Inc - July/August 2019 - 38
Engineering Inc - July/August 2019 - 39
Engineering Inc - July/August 2019 - 2019 Acec Member Survey
Engineering Inc - July/August 2019 - 41
Engineering Inc - July/August 2019 - Risk Management
Engineering Inc - July/August 2019 - 43
Engineering Inc - July/August 2019 - In The News
Engineering Inc - July/August 2019 - 45
Engineering Inc - July/August 2019 - Mergers And Acquisitions
Engineering Inc - July/August 2019 - 47
Engineering Inc - July/August 2019 - 48
Engineering Inc - July/August 2019 - Members In The News
Engineering Inc - July/August 2019 - 50
Engineering Inc - July/August 2019 - 51
Engineering Inc - July/August 2019 - Business Insights
Engineering Inc - July/August 2019 - Cover3
Engineering Inc - July/August 2019 - Cover4
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