Resilient Buildings & Retrofit

New York City's C-PACE administrator has adopted new guidelines that replace a cost-based lending formula with loan-to-value underwriting, potentially increasing loan sizes by roughly 40% for qualifying projects. The new framework caps borrowing at 35% of a property's stabilized value, adds embodied carbon as an eligible measure, and lets lenders disburse funds in tranches rather than a single lump sum at closing. Mike Doty, Nuveen Green Capital's senior director of originations for the Northeast, said the new test is easier to underwrite and could push loan sizes roughly 40% higher. The embodied-carbon change could benefit adaptive reuse projects, including office-to-residential conversions, which preserve more of a building's existing structure than ground-up construction. State legislation now awaiting the governor's signature would codify the loan-to-value and tranche-funding changes into law, giving lenders and sponsors more certainty than guidance alone. Nuveen Green Capital has closed more than $7 billion across over 750 C-PACE deals nationwide, and its C-PACE fund recently topped $1 billion.

A new Capgemini Research Institute report finds that 68% of executives now say their organization actively prioritizes climate adaptation, up from 56% in 2025, yet only 15% have fully quantified the financial impact of climate-related disruptions. The fifth edition of A World in Balance: The resilience reset, based on a survey of 2,100 executives at 701 organizations with more than $1 billion in annual revenue across 13 countries, also shows the share of organizations falling behind on net zero goals rising to 11% in 2026 from 1% in 2025, with 29% saying they have postponed their net zero objectives, compared with just 8% last year. Nearly nine in 10 organizations report climate-related supply-chain disruptions, and more than seven in 10 executives say securing access to critical resources such as energy, water and materials now influences sustainability decisions more than emissions-reduction targets. Sustainability spending reached 1.04% of revenue last year, above the 0.8% initially allocated, and 83% of organizations plan to increase climate adaptation spending over the next 12 to 18 months. Cyril Garcia, Global head of Sustainability services and Corporate Responsibility at Capgemini, said climate disruptions have become the new normal and that leaders can no longer defer climate action.

With natural disasters such as torrential rains and earthquakes occurring one after another, the challenge is whether social infrastructure and housing can be restored quickly after a disaster. The Sanae Takaichi administration has listed disaster prevention and national resilience as one of 17 strategic investment areas, and expectations are growing in both the public and private sectors for the use of artificial intelligence and information and communications technology. According to materials compiled by the Ministry of Health, Labour and Welfare in March, the number of licensed construction contractors stood at 484,000 at the end of fiscal 2024, down about 20 percent from the peak at the end of fiscal 1999, while the number of workers in the construction industry in 2024 was about 4.77 million, down roughly 30 percent from the peak in 1997. The share of construction workers aged 55 and older is high at 36.7 percent, while those aged 15 to 29 account for only 11.7 percent. According to Teikoku Databank, construction industry bankruptcies in 2025 rose 6.9 percent from the previous year to 2,021 cases, increasing for a fourth consecutive year and marking the highest level in the past decade. A disaster management agency that will serve as the command center during disasters is scheduled to be established during 2026, and the Ministry of Land, Infrastructure, Transport and Tourism and local governments are advancing the use of satellite data and drone imagery to assess damage, while the introduction of remote-controlled construction machinery and automated construction is also progressing.

Nepal has estimated the damage from last week's severe floods at at least 387.5 billion Nepali rupees, or about $2.56 billion, covering property, homes, and infrastructure. The disaster occurred on August 26 after a glacial lake outburst sent a torrent of water and mud down the Trishuli River, killing more than 1,250 people and leaving over 4,200 missing. Dharma Raj Upreti, head of Nepal's National Disaster Risk Reduction and Management Authority, said that in the first four months of initial recovery, an estimated budget of about $52.6 million will be needed for building roads and temporary shelters, providing drinking water, and restoring electricity. Nepal needs to build about 20,000 new homes, of which at least 7,500 were completely destroyed. The damage figure is still a preliminary estimate and may be revised after detailed surveys.

Belgium's public health office reported 2,935 excess deaths above the normal level during three heat waves from June 18 to August 16, representing an excess mortality rate of 22.6%. In the first wave, from June 18 to July 3, there were 2,035 additional deaths, or 48.8% above the expected level, the highest since the analysis of heat wave impacts began in 2000. The other two periods, July 4-17 and July 28-August 16, saw excess deaths of 535 and 365 respectively, with excess mortality rates of 14.8% and 7%. Although those aged 65 and above were the most affected, higher-than-normal deaths were also observed among younger people. This past summer, Europe faced multiple heat waves, while the United Nations weather agency noted that periods of extreme heat are becoming more frequent, intense, and longer-lasting due to climate change.

The Mayor of London's office has released a report saying climate change could cause up to £36 billion, or $50 billion, in damage to London per year by the 2050s, with lost working hours, business disruption, and damage to infrastructure from extreme weather likely to drag down London's gross domestic product. The report recommends that businesses adjust working hours, allow working from home, and relax dress codes, while calling on Transport for London to install air conditioning in new underground trains and find ways to keep trains and platforms cool. The Greater London Authority will prioritise protecting parks, publicising cool spaces, providing more public toilets and drinking water, and increasing shade in public areas. Mayor of London Sadiq Khan said climate change is threatening the lives of Londoners and causing hundreds of millions of pounds in economic damage, stressing the need to build cooler homes and buildings, greener and shadier communities, and infrastructure resilient to hotter weather. This summer, five heatwaves and weeks of low rainfall put pressure on the UK's public services, water systems, and infrastructure, while research in July found that the June heatwave caused £1.15 billion in damage to the English economy.

As part of its wooden building strategy, Mitsui Fudosan will complete the Nihonbashi Honcho Mitsui Building &forest in January 2027. The building has 18 floors above ground, stands 84 meters tall, and has a total floor area of approximately 28,000 square meters. It is currently the largest and tallest wooden rental office building in Japan. The structure uses a wooden hybrid design with Takenaka Corporation's fire-resistant laminated timber, Nen-En-Wood, and is expected to reduce CO2 emissions by about 30 percent compared to a steel-frame building of similar scale. A total of 1,100 cubic meters of domestically sourced timber is used for structural materials, including about 100 cubic meters from Mitsui Fudosan's own forests in Hokkaido. The building has obtained multiple environmental certifications, including ZEB Ready. It is already fully leased, with a wide range of tenants from IT, research and development, and general Japanese companies valuing it as a showcase for environmental management. Under the &forest brand, Mitsui Fudosan is expanding its wooden building developments, including a logistics facility in Ebina City and plans for a second building in Nihonbashi.

The Government Pension Fund has officially declared its commitment to achieving net zero, while advancing its role as a driver of infrastructure investment to prepare for climate change and an ageing society. Secretary-General Soraphol Tulayasathien said the fund has set guidelines to reduce greenhouse gas emissions from its operations, align its investment portfolio with a low-carbon economy, and use its role as an institutional investor to push investee companies toward sustainable business practices, in line with Thailand's goals. The GPF Sustainability Forum 2026 served as a collaborative platform for policymakers, institutional investors, international organisations, the business sector, and academia to set investment directions that generate long-term returns alongside positive impacts on the economy, society, and the environment. The forum proposed accelerating investment in infrastructure that supports climate change adaptation, transition finance, and businesses related to the ageing economy, such as health, technology for the elderly, housing, and financial innovations for longevity. It also proposed developing a Silver Taxonomy as a central standard for classifying elderly-related projects and promoting blended finance mechanisms to support investment in projects that create positive social impact.

C-PACE financing has evolved from a niche ESG product into a mainstream multibillion-dollar tool used across the commercial real estate cycle. Rafi Golberstein, CEO and founder of PACE Loan Group, noted that average deal sizes have grown from around $2 million in the firm's first year to $17 million in 2025, with nearly 90% of the U.S. population now covered by C-PACE programs. The financing is being deployed in new construction, mid-construction rescues, ramp-up bridge scenarios, and stabilized asset recapitalizations, including a $35 million loan for a St. Louis studio complex and a $22.5 million loan for a Houston luxury hotel. Golberstein highlighted that C-PACE is increasingly used alongside banks and debt funds, with tightened spreads and expanded eligibility driving earlier adoption in project planning.

More than one-third of U.S. house hunters say a clean home with high-end air and water filtration systems is a top-three priority for their next residence, according to a Redfin survey. The 36% share ties with security systems as the most sought-after feature, outranking views at 25%, smart-home technology at 20%, and backup power generation at 19%. Climate-resilient upgrades are a top priority for 14% of respondents, while luxury amenities like home theaters and tennis courts trail at 7% and 4%, respectively. The findings come as wildfire smoke from Canada recently triggered air quality alerts across much of the eastern U.S., underscoring a broader shift toward healthier indoor environments. Millennials and Gen Zers lead the demand, with 37% and 40% respectively ranking clean homes as a top priority.

The European Union is pressing ahead with the enforcement of several environmental measures under the European Green Deal strategy, which aims for net-zero greenhouse gas emissions by 2050. Currently, there are around 3,400 environment-related measures. Key measures that have already taken effect include the Carbon Border Adjustment Mechanism, or CBAM, which requires importers to purchase CBAM Certificates to offset carbon emissions starting from 1 January 2026. Meanwhile, the EU Deforestation Regulation, or EUDR, will be postponed for medium and large businesses to 30 December 2026, and for small businesses to 30 June 2027. In addition, several new regulations are set to come into force in 2026, including the Packaging and Packaging Waste Regulation, or PPWR, which mandates that packaging must be genuinely recyclable and limits empty space to no more than 40 percent of total volume by 2030; the Empowering Consumers for the Green Transition, or EmpCo, which prohibits unsubstantiated environmental claims and the use of self-created sustainability labels; the Ecodesign for Sustainable Products Regulation, or ESPR, which requires products to have a Digital Product Passport and bans the destruction of unsold stock; and the Corporate Sustainability Reporting Directive, or CSRD, which requires companies to disclose ESG information in line with ESRS standards, with the scope extending to foreign companies in 2027. Thai entrepreneurs must therefore accelerate their adaptation, from product and packaging design and sustainability data collection to establishing traceability systems across the entire supply chain, in order to maintain competitiveness in a global market that increasingly prioritizes sustainable supply chains.

Sansiri Public Company Limited and Siam Commercial Bank have announced a financial partnership, with Siam Commercial Bank providing green loans to Sansiri for the development of two super-luxury condominium projects in the Chidlom and Sukhumvit 51 locations, with a combined project value of 13.7 billion baht. This collaboration is part of a shared sustainability plan between the two organizations, which includes upgrading internal work processes to digital systems to achieve low-carbon and net-zero corporate goals in the future. Both projects will be designed to meet energy building standards, using low-carbon materials and smart energy-saving innovations, with an independent assessor verifying carbon dioxide emission intensity from usage according to Thailand Taxonomy criteria. Mr. Uthai Uthaisangsuk, President of Sansiri, said this partnership will set a new standard for the Thai real estate industry, while Mr. Sarath Ratanavadi, Chief Executive Officer of Siam Commercial Bank, stated that the bank aims to be a strategic partner in the transition to sustainability and to support customers in reaching net zero by 2050.

A survey by Teikoku Databank found that 50.0 percent of companies experienced business disruptions on days of extreme heat. By industry, construction was the highest at 73.6 percent, followed by agriculture, forestry and fisheries at 66.7 percent, and transportation and warehousing at 54.7 percent. Companies cited reduced work efficiency and heatstroke among employees as key issues.

Colorado's 2025 Wildfire Resiliency Code and California's 2025 WUI Code have taken effect, banning wood shakes in high-fire-hazard zones. CEDUR, a Colorado-based manufacturer, produces a synthetic cedar shake with a standalone noncombustible Class A fire rating that meets both codes without added underlayment. The product withstands temperatures exceeding 1,400 degrees Fahrenheit, far above the 375-degree ignition point of natural wood, and carries a Class 4 impact rating and a 50-year limited warranty. Insurers including State Farm, Chubb, and American Family Insurance offer premium discounts for homes with Class A roofing, with CEDUR customers in California and Colorado qualifying immediately upon installation. The company says its shakes are already being specified by architects in Wildland-Urban Interface communities where natural wood is restricted.

Extreme heat is the number one weather concern for Americans, cited by 70% of respondents in a new survey from First Onsite Property Restoration, as a dangerous heat dome expands across the U.S. this week. Wildfire smoke follows at 60%, drought at 59%, and wildfires at 52%, with concern highest in the West for all four threats. Power outages rank as the top property worry at 72%, while only 38% of Americans have an emergency kit prepared and just 54% feel personally ready for a weather emergency. The survey of 1,007 Americans was conducted in March 2026 and reveals a significant gap between high awareness and low preparedness.

The Monaco Energy Boat Challenge is evolving into a key forum for shaping sustainable yachting, with a recent conference session titled 'Climate Adaptive Yachting: Innovation for an Uncertain Maritime Future' exploring how yachts must adapt to rising sea temperatures, extreme weather, and stricter regulations. Natalie Quévert, General Secretary of SEA Index, noted that more owners are now requesting environmental certification before construction begins, reflecting the tool's value. SEA Index is collaborating with start-up NEMO Systems, founded by former Challenge competitors, to provide real-time energy consumption data for yachts and commercial vessels. The conference also highlighted the need for a combination of digital technologies, advanced materials, AI, and next-generation propulsion systems to reduce emissions and improve efficiency. The event continues with the 7th Alternative Fuels Conference, organized with the Prince Albert II of Monaco Foundation, examining pathways like hydrogen, wind-assisted propulsion, and battery technologies.

Cisco highlights that smart buildings can leverage workplace data to improve energy efficiency, reduce emissions, and enhance employee experience. Buildings accounted for about 28% of global energy consumption and 37% of global carbon dioxide emissions in 2024, according to a 2026 UN Environment Programme report. Cisco worked with the U.S. General Services Administration on a Workplace Innovation Lab in Washington, D.C., where a renovated space was 73% more energy efficient than an unrenovated area and avoided five metric tonnes of greenhouse gas emissions over one year. The company also points to its London office, designed with neuro-inclusivity in mind, as an example of using technology to support a more inclusive environment. Cisco emphasizes that connecting data from systems like HVAC, lighting, and collaboration tools enables better decisions about energy use, real estate, and employee experience.

Ferrovial N.V. has been awarded a $1.079 billion contract by the U.S. Army Corps of Engineers for the Puerto Nuevo flood control project in San Juan, Puerto Rico. This is the company's second contract with USACE under the project and involves expanding and upgrading a section of the Río Piedras channel. Ferrovial Construction CEO Ignacio Gaston said the company is proud to continue working with USACE to strengthen resilience and reduce flood risk. In a separate development, Dalaman Airport managed by Ferrovial became the first global terminal to meet 100% of its electricity demand using rooftop solar power.