The challenge
A midstream company with assets involved in the processing, transportation, and storage of natural gas, liquids, and crude oil was concerned about the impact of increasing extreme weather events on its key facilities. This firm was committed to protecting its investments in the long term but wasn’t sure where to start.
How Chubb helped
Chubb worked with the company to determine the most highly valued and critical facilities within their portfolio and correlated those locations with the highest risk profile to long-term climate change, according to both historical data and state-of-the-art climate change modeling tools.
Chubb recommended the following steps the company could take to mitigate its physical risks from climate change:
- Upgrading infrastructure to improve the resilience of facilities to flooding, hurricanes, and other extreme weather events
- Implementing fire prevention and safety measures to reduce the risk of drought and wildfires
- Enhancing lightning protection systems to minimize damage from strikes as the result of increased (convective) storm activity
- Winterizing some facilities and installing robust backup power supplies to protect equipment from extreme cold
- Reviewing and updating emergency response plans to ensure readiness for extreme weather events
Easing the mind of CEOs
CEOs can hear the clock ticking on climate change risks. According to PricewaterhouseCooper’s 2023 CEO report, about half of CEOs globally expect some impact in the next 12 months on their cost profile, 42% on their supply chains, and 24% on their physical assets. Chubb’s expertise and sophisticated risk assessment tools can help companies protect their assets and operations in the face of a changing climate.