climate risk framework for co-op housing: Common equity housing limited

Case Study: Getting properties climate ready and energy efficient

Wave Consulting was engaged to understand the nature of climate risk, choose an appropriate framework for response, and implement a risk matrix assessment process across all of Common Equity Housing Limited’s (CEHL) 2100 properties.

Climate risk framework
Wurundjeri Woi Wurrung and Bunurong Boon Wurrung lands, Victoria

Key facts

In 2013, Australian Standards drafted the first of its kind; a standard for Climate change adaptation for settlements and infrastructure - A risk based approach (AS 5334-2013).

CEHL overseas 2100+ co-operative housing properties in Victoria

The problem

Common Equity Housing Limited (CEHL) oversees a portfolio of over 2,100 properties in Victoria, accommodating over 4,000 residents, with a combined property value of $912M.

CEHL identified a risk in the suitability of its housing portfolio. Wave Consulting Australia was contracted to develop a climate risk framework to incorporate climate variance and adaptation into business, asset, and project planning processes. The framework considered research, statutory requirements, and best practices for managing climate risk and recommend an approach for CEHL to identify and address climate risks.

Working with Loci Environment and Place, we tailored the Australian Standard 5334-2013 - Climate change adaptation for settlements and infrastructure - A risk-based approach to suit CEHL's context and needs. Engaging with the board, staff, and tenants when possible, we tested and refined the framework for practical application.

A child stands in shallow waters at the beach shore with a fire blazing in background.

The solution

Wave Consulting Australia created a comprehensive framework incorporating a climate risk score dataset that allows for prioritization of factors such as temperature, bushfires, floods, sea levels, and more.

This framework was applied to approximately 2,100 properties, resulting in a set of recommendations based on the analysis outcomes.

For this project, we utilised high-resolution Victorian Climate Change projections, integrating them with current climate datasets to gauge changes in factors such as summer and winter temperatures, sea level rise, rainfall, extreme rainfall, proximity to green spaces, and bushfires.

The key factors that influenced this rating were: maximum and average temperatures for summer and winter with the addition of regional climate risk factors, surrounding green space, bushfire risk and history, sea level rise with the addition of regional climate risk factors, and flooding risk.

The primary recommendations include the adoption of the climate risk framework based on the Australian standard, active engagement with co-ops and tenants to minimise environmental impact, and the utilisation of climate risk data for informed decision-making regarding future property acquisitions and divestments.

The outcome

CEHL has adopted this new climate risk framework that brings in the latest climate projects and enables the organisation to assess their 2,100 properties.