Some design firms have probably heard of ESG risks, which refer to environmental, social, and governance risk factors that can impact a firm’s performance, long-term value, and reputation. There is a common misconception that ESG risk factors are non-financial risks, which is inaccurate. In fact, many ESG risks pose significant financial consequences to businesses and... Continue Reading →
While environmental, social, and governance (ESG) performance is increasingly becoming a focus in the design and construction industry, there remains quite a bit of confusion over the goals behind ESG and their impact on design firms. Some of the questions that seem to be percolating around ESG are: Is it about concern over profits? Is... Continue Reading →
Environmental, social, and governance (ESG) considerations are increasingly important to design firms for a variety of reasons. In this post, we will explore why ESG matters to design firms and how they can integrate these considerations into their projects and business practices. First, it's important to understand what ESG means. Environmental considerations relate to a... Continue Reading →
As 2022 winds down and we look back, the biggest story (other than the war in Ukraine) was the passage of the most historic climate law in US history, the Inflation Reduction Act (Act). The new law aims to transform the US economy to align with the global urgency of taking action to mitigate the... Continue Reading →
At Victor, our professional liability underwriters and risk managers are often asked how risk and professional liability changes for design firms using advanced digital technologies (such as generative design, DfMA (Design for Manufacturing & Assembly), VR/AR, BIM, Digital Twins, etc.). The simplest answer is that humans manage all technologies and the liability question and associated... Continue Reading →
ESG factors in investment decision-making has become a “hot potato” topic because it’s largely misunderstood, broadly defined, and the guardrails for companies to report on metrics have not yet been standardized. That said, it’s not too early for design firms to engage meaningfully, given their role in all things climate and many things social. To... Continue Reading →
The relationship between business and climate change involves both risks and opportunities. Three risks, in particular, deserve close consideration as each of them highlights business opportunities for the future. Transition Risks What are they? These are the business risks design and construction firms face related to changes in the policy and regulatory landscape; in other... Continue Reading →
The net outcome of the 3-1 vote by the SEC on March 21, 2022 for proposed rule changes would make climate risk assessments and disclosures a routine part of public financial disclosure rules in the US. The proposed rule aims to standardize climate considerations into financial disclosures to help investors gain a better picture of... Continue Reading →
The opportunity created by the federal stimulus packages passed since 2020 is undeniable, but the capacity to optimize this truly historic moment remains unclear. An infusion of trillions of dollars to keep businesses and governments from feeling too much of the pandemic pain was of primary concern early in the pandemic. In 2021, what transpired... Continue Reading →
Climate change risks may seem too colossal and global for most businesses to be relatable, especially for non-publicly traded companies. Soon enough, however, all businesses will need to take stock and internalize business model impacts of climate change—the transition risks and opportunities— and climate change impacts on business—the physical risks of rising temperatures and related... Continue Reading →
