Climate change should be considered a new core aspect of creditworthiness when...

CNN Climate 6 months ago

Climate change should be considered a new core aspect of creditworthiness when prospective home buyers apply for a mortgage, a new report suggests. The analysis from the climate risk financial modeling firm First Street is a groundbreaking nationwide look at the ties between the growing risks from extreme weather such as floods and wildfires, and a long-suspected spike in mortgage defaults in hard-hit areas. It finds that lenders and borrowers are exposed to more financial risk than they are aware of because current ways of determining creditworthiness leave out exposure to climate disasters as a factor. If climate risk were to be taken into account by lenders — which the analysis shows may be increasingly necessary as climate change worsens the severity and frequency of certain extreme weather events — then the next time someone goes to get a home loan their credit score could be knocked down (or adjusted upward) due to their climate risk exposure. Win McNamee/Getty Images 📸 : Tap the link in bio for more.

layersDaily Sustainability Digest

Published about 4 hours ago



The global construction industry is closely monitoring outcomes from COP30 in Belém as debates over adaptation finance and emissions targets intensify. The summit’s negotiation gridlock between developed and developing nations exposes an ongoing failure to bridge the funding gap required for climate-resilient and sustainable construction across vulnerable regions such as Bangladesh. The absence of robust financial frameworks is delaying progress in carbon neutral construction and the implementation of Whole Life Carbon Assessment methodologies critical to achieving net zero Whole Life Carbon performance in buildings facing extreme weather risks.

Brazil’s role as both host nation and custodian of the Amazon shapes new tensions between deforestation, low carbon design policy ambitions, and land-use reforms that threaten global carbon footprint reduction progress. Any weakening of environmental safeguards could undermine decarbonising the built environment strategies and erode the circular economy in construction principles that underpin resource efficiency in construction initiatives.

In the UK, the Environmental Audit Committee has reaffirmed that nature-positive planning regulations are not impeding housing supply, strengthening the argument for sustainable building design and eco-design for buildings within urban policy frameworks. The Committee’s position supports the expansion of green infrastructure and sustainable urban development through data-led lifecycle assessment and Life Cycle Cost analysis tools linked to environmental product declarations (EPDs).

Industry leaders continue to push for measurable progress beyond declarations. Adoption of BREEAM v7 and low embodied carbon materials specifications signals growing attention to the embodied carbon challenge and the environmental impact of construction. Better integration of circular construction strategies and end-of-life reuse in construction practices would enhance building lifecycle performance while advancing the Circular Economy transition.

As the built environment sector moves toward net zero carbon buildings, practitioners recognise that tangible decarbonisation relies on aligning public policy, private finance, and innovation in sustainable building practices. The momentum from COP30 underscores that environmental sustainability in construction is not merely policy rhetoric but a technical and economic imperative demanding global coordination.

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