Floods, Bushfires and Natural Disasters

Floods, bushfires and other natural disasters have been front of mind recently with Treasurer Jim Chalmers estimating that natural disasters have in the past year impacted almost 7 out of 10 Australians.

Treasury analysis estimates a $5 billion, or 0.25% of real GDP, hit to the economy from natural disasters, mainly arising from reduced activity in mining, agriculture, accommodation and food services, retail trade and construction. The figure does not include damage to housing or transport infrastructure or the costs to the federal budget.

Woodbridge Capital conducts extensive credit due diligence to always understand the downside risks of loan investments and if these risks can be managed with an absolute focus on preservation of capital. As part of our ESG due diligence we consider these physical risks (floods, storms, earthquakes, wildfires and droughts) which may incur damage to property and land values in the commercial real estate and agriculture sectors. Amongst other factors, we review flood maps, independent consultant environmental reports, flood reports, property overlays, insurance policies as part of this process.

Please reach out if you would like to further understand Woodbridge's ESG processes.