Hongkong Land and Marsh report shows climate resilient design can cut expected flood losses by 88%

HONG KONG SAR – Media OutReach Newswire – 23 October 2026 – Hongkong Land Holdings Restricted (“Hongkong Land”) at the moment printed Constructing Worth That Lasts: Quantifying the Return on Local weather Resilience in Actual Property. The report developed with Marsh places a monetary worth on designing buildings for a altering local weather. Its case research is Westbund Central, Hongkong Land’s mixed-use waterfront improvement of roughly 1.7 million sq. m. on Shanghai’s Huangpu River.

The report finds that the event’s resilience measures lower anticipated storm-surge losses by 84% and rainfall-flood losses by 88% underneath at the moment’s situations. Westbund Central’s resilience measures are anticipated to maintain storm-surge and rainfall-flood losses in 2050 beneath the losses an unprotected constructing would face at the moment.

Closing the resilience valuation hole

Local weather threat now shapes how actual property is assessed, financed and insured. Nearly each local weather associated disclosure acknowledges the necessity for adaptation, but fewer than one in ten places a quantity on it. Hongkong Land and Marsh got down to shut that hole collectively by treating resilience as an funding with a measurable return, not a price to be absorbed.

Resilience pays, and the reductions are giant

Working with international main insurance coverage dealer and threat advisor Marsh, Hongkong Land modelled the common annual loss (AAL) at Westbund Central from storm surge, rainfall flooding and wind. AAL is the anticipated yearly price of bodily harm. The modelling in contrast local weather dangers at the moment and in 2050 for buildings with and with out resilience measures past these required by constructing codes. It assumed a future through which international greenhouse-gas emissions stay excessive.

With out the event’s enhanced resilience measures, anticipated storm-surge losses would greater than double and wind losses would greater than triple by 2050. The measures cut back anticipated losses as follows:

• storm-surge losses fall by 84%, each at the moment and in 2050
• rainfall-flood losses fall by 88% at the moment and 79% in 2050
• wind losses fall by 36% at the moment and 31% in 2050

Constructed for the local weather of 2050

Westbund Central was engineered for projected local weather situations in 2050, relatively than historic situations. These measures considerably cut back the impression of accelerating local weather threat:

• Storm surge: with Westbund Central’s resilience measures in place, common annual losses in 2050 are projected at 0.12%, in contrast with 0.38% for a constructing with out these measures at the moment.
• Rainfall flooding: with the resilience measures in place, common annual losses in 2050 are projected at 0.05%, in contrast with 0.19% for a constructing with out these measures at the moment.

Insurers are elevating premiums, tightening phrases and withdrawing cowl from uncovered places. In that market, a decrease and extra steady loss profile issues.

Westbund Centrals resilience options embody:

• 23% extra drainage capability, defending in opposition to a 1-in-100-year rainfall occasion
• Grade 1 waterproofed basements and the elevation of important tools
• A “Sponge Metropolis” community of greater than 12 options designed to seize and retailer stormwater, with capability exceeding 2,000 m³

The figures are conservative. They rely bodily harm solely and exclude excessive warmth, the fastest-growing hazard on the website, which the event manages by design and operations.

Michael T. Smith, Group Chief Govt of Hongkong Land, mentioned: “Local weather change is a major drive reshaping actual property. At Westbund Central, local weather resilience is core to all that we do as a result of we consider resilience and business efficiency reinforce one another. This report exhibits the return on that funding could be measured at the moment, with instruments that exist already. The business not has any excuse to not.”

Stuart Grant, Chief Govt of Westbund Central, mentioned: “A premium vacation spot is a seamless one. A lot of the resilience work at Westbund Central is intentionally invisible to the tenants and guests who use it each day. Its worth exhibits within the disruption that by no means reaches them. Retaining the precinct open, snug and buying and selling no matter climate situations is how resilience facilitates business efficiency.”

Michael Li, Chairman and President of Marsh Danger China, mentioned: “Local weather threat is now a balance-sheet threat. Westbund Central exhibits that adaptation pays again by decrease loss publicity and stronger entry to capital. As a threat orchestrator, Marsh matches safety must capital flows, serving to shoppers quantify resilience and shut the valuation hole.”

A way for the business

The report is obtainable as a technique others can apply, not simply as an account of 1 improvement. It traces how local weather threat could be assessed from website choice by to operations and linked to monetary outcomes. It calls on the business to:

• quantify early, at website choice and design, when motion is most cost-effective
• convey insurers and lenders in from the beginning
• construct a shared normal so resilience could be benchmarked throughout belongings, as carbon already is

For additional particulars, please see the complete report which is out there for obtain [here].

Hashtag: #HongkongLand

The issuer is solely answerable for the content material of this announcement.

Westbund Central

Hongkong Land’s Westbund Central is the Group’s largest-ever single funding. Scheduled to finish in phases up till 2028, it’s an US$8 billion improvement encompassing roughly greater than 1.7 million sq. m. of prime mixed-use property strategically positioned at Shanghai’s Xuhui Waterfront. It’s a flagship improvement of Hongkong Land’s prime business properties’ CENTRAL Sequence. The ultra-premium built-in business property contains 240,000 sq. m of retail house, 650,000 sq. m. of premium Grade A workplaces, 160,000 sq. m. of high-end waterfront luxurious residences, two accommodations (55,000 sq. m.) and over 50,000 sq. m. of cultural and artwork venues.

Hongkong Land

Hongkong Land is a significant listed property improvement, funding and administration group. It focuses on growing, proudly owning and managing premium and ultra-premium mixed-use actual property in Asian gateway cities, that includes Grade A workplace, luxurious retail, residential and hospitality merchandise. With over US$50 billion in belongings underneath administration, Hongkong Land’s ultra-premium mixed-use actual property footprint spans over 1.97 million sq. m. lettable space in operation and 1.43 million sq. m. lettable space underneath improvement, with flagship mixed-use initiatives in Hong Kong, Singapore and Shanghai. Its properties maintain business main inexperienced constructing certifications and entice the world’s foremost corporations and luxurious manufacturers. Established in 1889, Hongkong Land takes a long-term view, investing considerably alongside its capital companions and concentrating its portfolio the place it may well create essentially the most worth for tenants, clients and traders. Hongkong Land Holdings Restricted has a major itemizing on the London Inventory Change, with secondary listings in Singapore and Bermuda. Hongkong Land is a member of the Jardine Matheson Group.

Marsh
Marsh (NYSE: MRSH) is a worldwide chief in threat, reinsurance and capital, individuals and investments, and administration consulting, advising shoppers in 130 nations. With greater than 95,000 colleagues, Marsh helps construct the boldness to thrive by the facility of perspective. For extra info, go to marsh.com, or observe us on LinkedIn and X.