TO VALUE RESILIENCE
Statement 1: Functional and reliable: what organisations want from an approach to value resilience
Cross-sector coalition seeks clear pathways for Australia to respond to climate and disaster risk
The Australian Business Roundtable for Disaster Resilience & Safer Communities established the Resilience Valuation Initiative (RVI) coalition. RVI is seeking to advance an accepted process with enabling methodologies for understanding the value of a resilience-building asset, network, feature or activity.
This statement describes what RVI participants want from an approach that supports them to better value resilience, the decisions they want to focus on first and the outcomes this would drive.
RVI participants believe that better valuing resilience must involve methodologies to quantify the impacts, risks, costs, benefits and performance of resilient assets and activities. This helps to embed the economic case into investment decisions. It also builds the business case for investment along with commercial whole-of-life cost considerations.
Such insight can inform, influence or otherwise support decision-making that delivers more resilient assets, networks, systems and communities. It would clarify the best-value opportunities for investing in interventions that enable adaptation responses.
What Initiative participants want from an approach
RVI participants, individuals, organisations and communities make decisions every day that impact Australia’s natural hazard and climate resilience. This can take two forms:
Each have their own processes and context for making investment decisions, seeking or allocating funding. They balance different priorities, values, resource levels, stakeholder interests and mandates.
Decision-makers want to improve their understanding of the impacts, costs and benefits of resilience and be able to measure or report against them.
RVI participants identified a need for an approach to valuing resilience that is functional and reliable. The outputs must enable different storytelling approaches that speak to both the hearts and minds of their stakeholders.
This means that:
THE APPROACH MUST
Adopt a broad, systemic and whole-of-life perspective considering interdependencies and externalities
a simple and clear approach, with the scale of effort needed to implement proportionate to the investment decision
actors with different levels of expertise and resources can use it
different sectors can use to assess different timeframes and magnitudes
diverse stakeholders can connect with the process and outputs
a range of proponents can easily understand consistent guidance and tools
relates to the organisation’s decisions and the context, e.g., fitting into TCFD and risk management work
will produce consistent outcomes across applications
including reliability of the data used in the process
With outputs that
To support organisations’ understanding of
Our work to date indicates that decision-makers vary significantly on how they consider resilience and what tools and methods they use. Internal factors such as an organisation’s capacity, capability or objectives, as well as external factors such as market demand, competition or regulatory requirements drive these differences.
Covering the range of needs will be a challenge in identifying a broadly acceptable approach but is a priority for the RVI.
Where we will focus first
In a coalition of public, private and not-for-profit organisations, we have the opportunity to explore a range of decisions. Those with fewer barriers or greater incentives to consider resilience are likely to be first movers. Therefore, we will test how well existing methodologies and tools support the following scenarios:
|Arup||Department of Prime Minister & Cabinet||Munich Re|
|Australian Business Roundtable for Disaster Resilience & Safer Communities||Energy Networks Australia||National Recovery and Resilience Agency|
|Australian Institute for Disaster Resilience||EY||Queensland Reconstruction Authority|
|Australian Red Cross||Frasers Property Australia||Resilient Projects|
|Australian Super||Green Building Council of Australia||Woolworths|
|Bushfire & Natural Hazards CRC||IAG||WWF-Australia|
The Resilience Valuation Initiative welcomes more organisations to participate in our testing or other parts of the work program.