Data to Action: The Critical Role of On-Site Assessments for a Complete View of Climate Risk

Climate change is fundamentally changing traditional risk management strategies. We can’t just rely on past weather patterns anymore. We need to look ahead to tackle the new challenges brought by climate change, which are becoming more obvious every day. While climate data plays a critical role in evaluating an organisation’s exposure to potential hazards, it represents only one facet of comprehensive risk assessment. Unseen threats, operational vulnerabilities, and potential financial impacts are best identified through dedicated, on-site climate risk assessments.

This article examines how site-specific assessments can effectively bridge the gap between raw data and practical realities, enabling organisations to develop a more holistic understanding of climate-related risks and take actionable steps towards climate resilience.

Data Driven Insights

To fully understand risk, we need a multidimensional approach. This means looking beyond the site’s exposure to hazards and considering which critical areas could be affected, as well as the controls already in place to manage these risks. Zurich Resilience Solutions has developed a robust risk methodology which leverages 150 years of insurance data and 75 years of experience in risk management. Zurich Resilience Solutions is a committed partner, helping organisations reduce losses and build resilience to protect against evolving risks like climate change.

The relevant hazards can be identified through Zurich Resilience Solution’s Climate Spotlight tool, which uses Zurich’s proprietary climate data. We’ll flag any sites or assets that face high hazard levels today. We’ll also show you how these hazard levels could change in the future. Climate Spotlight helps you focus on the most important sites. It does this by using critical data like financial, property, or people-based metrics. By combining future hazard data with site importance, it gives a clearer way to spot vulnerable locations. These can then be prioritised for climate adaptation.

The use of data for modelling climate hazards across an organisation’s portfolio is an important first step in identifying which sites are most at risk. Global data helps spot regional trends and pinpoint vulnerable areas. But when we look closer at individual assets or sites, we often find local details that change how we see the risk.

Context Shapes Risk

To better understand the hazard level onsite, we can use local data sources. These sources give us granular insights on how the local climate and land use impact the hazard level. However, we can only fully validate and assess the data once we’re on-site. This is because hazard levels often change after we’ve reviewed the specific details of the site. We gather important information on-site, like how the building is constructed, the use of key equipment, and controls such as flood defences and wind resistance. This helps us understand how vulnerable the site is.

We then assess the overall risk by balancing the site’s vulnerability with the level of hazard. Our climate experts refine this assessment further by looking more closely at the site or asset. Assessing physical and operational controls is essential to understanding site risks. Local topography frequently provides advantages for a site; for instance, elevated terrain can protect against flooding from nearby watercourses, while higher ground can serve as an effective windbreak. Regular maintenance, like clearing drainage and inspecting roof equipment, reduces threats from climate hazards such as floods and wind. Sites often respond reactively with measures like extra breaks during heatwaves or gritting roads in icy weather. However, these actions are usually informal; establishing proactive response plans would better prepare sites for extreme weather events.

On-site risk assessments can also detect criticalities that may be missed during data screening but have a significant impact on vulnerability, such as risks associated with drought and reliance on water for operations. Evaluating raw materials, process flows, business continuity plans, critical equipment, and reliance on utilities can help spot risks that may increase a site's overall risk classification. For example, a site that relies on a particular supplier or regional area for materials may be at greater risk due to the increase in frequency and severity of climate related hazards. By identifying these site-specific risks, the site can take steps to improve their climate resilience. This might include diversifying its supply chain or setting up contingency plans to handle disruptions. Through on-site assessments our climate experts develop an understanding of site level hazards, criticalities and physical and operational controls, enabling us to advise on steps to strengthen resilience and close the gap between present conditions and desired resilience.

Building the Business Case for Adaptation

Proactive investment into climate adaptation is essential for long-term business stability. Studies have highlighted that for every USD 1 invested into climate adaptation today, will yield more than USD 10 of benefits within the next decade. The importance of prioritising climate adaption in effort to future-proof decision making is explored deeper within our article Risk to Resilience: Building an Impactful Strategy for Climate Adaptation.

Site assessments help you understand risks by showing possible loss scenarios. These can then be measured to estimate how climate hazards might cost you financially compared to the costs and benefits of taking action. This approach clarifies the cost of inaction and supports a strong business case for climate adaptation, while guiding better decisions and future planning to reduce climate risk.

Many organisations find it challenging to translate climate data into actionable steps that improve resilience. Conducting thorough site assessments and providing affordable recommendations, prioritised by ease of implementation and alignment with existing business practices, can help integrate these actions into strategic plans and support ongoing adaptation and maintenance. From our experience, sites that look beyond their boundaries and collaborate with local authorities and organisations, lower their vulnerability and increase their resilience in a cost-effective manner. Demonstrating the cost-effectiveness of climate adaptation strengthens the argument for proactive measures, making it a smart business decision and not just a sustainability measure.

Hidden Risks and Opportunities

Through conducting on-site risk assessments, the diverse and complex nature of risk across an organisation can be assessed by our climate experts. This can often reveal hidden risks and opportunities, that are not immediately apparent.

A recent study by Zurich Resilience Solutions, highlights the critical role of considering the physical climate risk of renewable energy infrastructure. Many organisations are planning for climate mitigation strategies and should prioritise the climate resilience of their investments. For example, EV chargers should be placed in locations with low flood risk and wind-resistant solar panels should be implemented in areas prone to high wind speeds. For both existing infrastructure and future development plans, organisations should consider how they can make their investments climate resilient.

Operational processes that lack resilience against climate hazards or those that are vulnerable to a single point of failure can be flagged as a priority for improvement. By leveraging forward looking climate data and incorporating existing business continuity plans, practical steps can be suggested as opportunities to increase resilience. These recommendations can be utilised by the site for future decision making and investment strategies.

Site assessments can also act as a validation for existing physical and operational controls, as many organisations are already implementing strategies towards climate adaption. Looking beyond data and embracing the interconnected nature of risk, organisations can strengthen decision making and develop plans that are robust as our climate changes. There are a variety of accessible tools and resources for organisations to use to begin their climate resilience journey. These include, the UK GBC Resilience Roadmap, Copernicus Interactive Climate Atlas, and the Zurich Flood Guide.

Empowering resilience

In summary, on-site climate risk assessments are essential for transforming raw data into actionable strategies that build true resilience. By combining forward-looking climate data with site-specific insights, organisations can uncover hidden vulnerabilities, quantify potential losses, and prioritise adaptation measures that are both cost-effective and practical. These assessments do more than just provide numbers. They put risks into context, show opportunities, and help decision-makers make smart investments in climate adaptation. Ultimately, embracing a holistic approach ensures that organisations are not only prepared for today’s challenges but are also equipped to thrive as climate risks evolve. With the right tools, knowledge, and dedication to ongoing improvement, building resilience to climate change becomes a realistic and lasting goal for any business. If you would like to learn more about how on-site climate risk assessments can support your organisation in building climate resilience, please reach out to our team at Zurich Resilience Solutions.