Opening the floodgates: Are our workplaces ready for a risky climate?

Climate change is increasingly forcing businesses to consider a pertinent question that extends beyond simple sustainability targets, can their buildings withstand the conditions that may be coming down the pipeline in future decades?

Flooding, overheating, more severe storms and water shortages are all extremes that are becoming more frequent occurrence son the global landscape. But, for commercial landlords and occupiers, these risks also pose financial implication; potentially upping insurance premiums, property valuations and wider investment decision-making.

And, the issue is becoming harder to ignore, extreme weather has transparently begun disrupting economies across the globe. Research published by insurance broker Marsh in September 2026 cited that 43% of surveyed organisations had experienced losses or disruption from extreme weather over the previous three years. Flooding came out as the most frequently reported threat to property, followed by heat stress and water stress. It highlights the growing exposure companies are facing from the toil of the climate crisis.

A new approach to measuring risk

The UK recently unveiled its proposed introduction of Flood Performance Certificates. Announced by the government alongside Flood Re in October this year, the planned pilot in England aims to provide a more standardised approach to property flood exposure and the measures in place to reduce its subsequent risk.

While the initial focus of the scheme is residential property, the underlying principle signals wider relevance: clearer information about climate exposure could help buyers, investors and insurers make more informed decisions. For commercial real estate, a similar approach could make resilience an increasingly visible consideration during acquisitions, lease negotiations and refurbishment projects.

No two buildings are the same

Not all properties face the same risks, even when they occupy similar locations or serve comparable purposes. An office with effective flood protection, efficient cooling and resilient building systems may be better equipped to withstand extreme weather than a neighbouring property without such measures. Over time, that difference could affect not only operating costs, but business continuity and investment opportunity.

Moreover, where climate-related risk becomes more difficult to assess or manage, insurers may respond through higher premiums, tighter conditions or restrictions on cover. The possibility of which raises questions about whether climate resilience is adequately reflected in long-term asset strategies, particularly in consideration of heritage or historic buildings, where retrofitting protection may be technically challenging or expensive.

Resilience, built into value?

Whether climate resilience will become an explicit factor in commercial property decisions, rather than just remaining a consideration for risk managers and sustainability teams, is a broader question. Marsh’s research suggests that extreme weather is already disrupting businesses, while the government’s proposed flood-certification pilot does signal a growing interest in making physical risk easier to digest. Together, they point toward a market in which the ability to withstand disruption could increasingly distinguish one organisation, or building, from another.

For landlords, investors and occupiers, the challenges lie in identifying vulnerabilities before they translate into financial loss. As climate risks evolve and aggregate, the long-term value of a workplace may depend not only on its location or design, but its ability to remain operational, even if conditions deteriorate.