ESG Focus | May 05 2022
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Recent findings by the Climate Council reveals one in twenty-five homes in Australia might be uninsurable by 2030.
-Climate Council report reveals river flooding accounts for 80% of risk to properties
-Story below includes link for local climate change impacts across Australia
-Ten most at risk electorates
Mark Woodruff
While recent flooding on the east coast of Australia reinforced the need for home insurance it appears one in twenty-five homes will be uninsurable by 2030.
These are the findings after a detailed analysis by the Climate Council, which also reveals the number rises to one in seven within Australia’s top ten electorates most at-risk of climate impacts.
Alarmingly for residents in the seats of Nicholls in Victoria and Richmond on the north coast of NSW, the figure rises to 27% and 20% for properties that fall into the high-risk category.
By state and territory, Queensland fares worst with 6.5% of properties potentially uninsurable by 2030, followed by NSW and South Australia with 3.3% and 3.2%, respectively. Next is Victoria with 2.6%, ahead of the Northern Territory (2.5%), WA (2.4%), Tasmania (2%) and 1.3% for the ACT.
The Climate Council report ‘Uninsurable Nation’ notes 80% of the risk for properties classified as ‘high risk by 2030’ is attributable to flooding from rivers.
It’s probably at this point some readers are feeling the inclination to get a risk assessment on their own property. After clicking on this Climate Risk Map of Australia | Climate Council link you may enter your suburb to see how it will be impacted by climate change and the number of properties at risk in your area.
The map can also be used to view data on the risk under different greenhouse emissions scenarios in a particular suburb, electorate or local government area for the years 2030, 2050 and 2100.
Action plan
Dr Karl Mallon, CEO of climate Valuation (which conducted the analysis) encourages all homeowners and buyers to ensure they fully understand local hazards and get a property-specific report on their risk.
Mallon noted “Insurers and banks are already quantifying the risks from climate change. It’s essential that Australians inform themselves about these risks to their safety and financial wellbeing, which are well known to financial institutions and governments.”
Meanwhile, on the subject of governments, Climate Council CEO Amanda McKenzie suggested "The decisions of the next Federal Government will influence the future impacts of climate change for generations to come. Pollution from coal, oil and gas must begin to plummet and we must scale up renewable power so it meets the needs of all sectors of our economy."
The Climate Council recommends Australia triple its efforts and take strong, bold measures to reduce its national emissions by -75% by 2030 and reach net zero by 2035.
The ten most at risk electorates
Based on the percentage of 'high risk' properties by 2030, the top 10 most at-risk electorates are:
1. Nicholls, Victoria: 27% or 25,801 properties
2. Richmond, New South Wales: 20% or 22,274 properties
3. Maranoa, Queensland: 15% or 9,551 properties
4. Moncrieff, Queensland: 14% or 18,032 properties
5. Wright, Queensland: 14% or 12,140 properties
6. Brisbane, Queensland: 13% or 19,355 properties
7. Griffith, Queensland: 13% or 14,812 properties
8. Indi, Victoria: 11% or 11,215 properties
9. Page, New South Wales: 11% or 11,691 properties
10. Hindmarsh, South Australia: 11% or 10,775 properties
P.S. In case the link above doesn't work: www.climatecouncil.org.au/resources/climate-risk-map/
FNArena's dedicated ESG Focus news section zooms in on matters Environmental, Social & Governance (ESG) that are increasingly guiding investors preferences and decisions globally. For more news updates, past and future:
https://www.fnarena.com/index.php/financial-news/daily-financial-news/category/esg-focus/
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