Extreme Weather Events

The Mediterranean region is susceptible to a variety of extreme weather events, including storms, floods, wildfires, and heatwaves, which are increasing in frequency and intensity due to climate change. These events could cause significant damage to MEDRE’s real estate assets, leading to substantial financial losses and operational disruptions. Damage could range from minor repairs to complete property destruction, requiring significant financial resources and potentially impacting the project’s ability to generate profits and distribute dividends. Additionally, extreme weather events could disrupt the tourism industry, affecting occupancy rates and revenue generation for MEDRE’s hospitality assets.  

Mitigation

To mitigate the risk of property damage due to extreme weather events, MEDRE will:

Preventative Measures

• Comprehensive Insurance Policies: Secure comprehensive insurance policies that specifically cover the project’s properties against a wide range of potential risks, including storm damage, flood damage, fire damage, and heatwave-related damage. Each property will be individually curated, and coverages will be precisely calculated to ensure optimal protection.
• Property Hardening: Implement preventative measures to minimize potential damage, such as installing storm shutters and reinforced roofing, landscaping to reduce wildfire risk, and implementing flood mitigation measures.
• Climate Change Adaptation: Integrate climate change adaptation strategies into property design and management, such as using drought-resistant landscaping, installing green roofs, or elevating structures in flood-prone areas.
• Renewable Energy: Utilize renewable energy sources, such as solar panels or wind turbines, to reduce reliance on fossil fuels and minimize the environmental impact of the properties.
• Sustainable Building Materials: Use sustainable and resilient building materials that can withstand extreme weather events, such as reinforced concrete, impact-resistant windows, or fire-resistant roofing.  

Detective Measures

• Property Inspections: Conduct regular property inspections to identify and address potential vulnerabilities before extreme weather events occur.
• Weather Monitoring: Implement weather monitoring systems to track weather patterns and receive early warnings of potential extreme weather events.
• Environmental Risk Assessments: Conduct regular environmental risk assessments to identify potential vulnerabilities of the properties to extreme weather events and develop mitigation strategies.

Corrective Measures

• Emergency Preparedness: Develop and regularly review emergency preparedness plans to ensure a swift and effective response in case of property damage due to extreme weather. This includes procedures for evacuation, damage assessment, and coordinating with insurance providers and emergency services.
• Disaster Recovery Planning: Develop comprehensive disaster recovery plans that include procedures for evacuation, damage assessment, and reconstruction in case of property damage due to extreme weather events.