Development in a state of climate change: an Australian case study of government response

Abstract

Purpose This research seeks to understand the potential impact to investors from government responses to climate change risk, as reflected in changes to planning processes made after significant weather events.Design/methodology/approach The research examines the land planning responses within a select local government authority (“LGA”) area following four significant weather events, in order to identify any changes made, and the impact on future development proposals. The LGA selected is the Central Coast Council, which is a coastal LGA in the Australian State of New South Wales. The research engaged with the publicly accessible records available on the Central Coast Council, Australian Bureau of Meteorology and other websites; and extant literature.Findings The research reveals that some adjustments were made by the Central Coast Council, and or the State government, to relevant laws, policies and processes following these events. These changes, however, tended to focus on imposing additional requirements on future development applications, rather than on requiring changes to current structures, or prohibiting further development works.Research limitations/implications The research has three limitations: (1) land law in Australia varies, as each State and Territory, and LGA, has specific laws, policies and processes; (2) as laws and policies are subject to change, it was necessary to select points in time at which to engage with those laws and processes; and (3) COVID-19's impact on domestic Australian travel [the authors could not travel interstate] meant only documents available on the Internet were considered, however, not all documents relating to development; or changes to laws and processes were easily accessible online. As the research focussed on one case study area, this may limit the applicability of the results to other areas. However, as extreme events are international, the related issues are a concern in all areas.Practical implications This research confirms the results of other extant research, which observed that some risks cannot be properly mitigated, such that any development in an at-risk area remains at risk. It also identifies that more current, accurate and publicly accessible data are required to enable investors to more easily and accurately identify all risks affecting a property.Originality/value The research provides a snapshot of one LGA's response to the physical risks arising from climate change events. As investors and other organisations integrate and build up their analysis of climate risks to their portfolios and organisations, governments become more aware of the long-term effects of climate change and consistently with extant research; this research indicates that a greater awareness is required of current risks and action to manage the short-term effects and cost challenges, in addition to the long-term adaptation requirements.

Improving the benchmarking of ESG in real estate investment

“…Warren-Myers et al , 2021), government responses to climate change events (e.g. Cradduck and Warren-Myers, 2022), climate risk and real estate pricing (Clayton et al , 2021b; Fuerst and Warren-Myers, 2021; Sayce et al , 2022), the increasing importance of ESG in international real estate markets (Newell and Marzuki, 2022) and ESG and real estate in a post-COVID environment (Pike, 2020). A full assessment of the international literature regarding hazard exposure to specific climate change events (e.g.…”