Issue link: https://resources.tangoanalytics.com/i/1532682
C H A L L E N G E S O F T H E M O D E R N B U I L T E N V I R O N M E N T Despite its importance, the built environment faces significant challenges that threaten its sustainability and resilience: Resource Depletion: The construction and operation of buildings consume large quantities of raw materials, water, and energy, often at unsustainable rates. Climate Change: Buildings and infrastructure are both contributors to and victims of climate change. They emit greenhouse gases during construction and operation, while also being increasingly vulnerable to climate-related risks like flooding, heatwaves, and storms. Urbanization: Rapid urban growth is straining existing infrastructure and resources, leading to overcrowding, pollution, and inefficient land use. Regulatory Pressures: Governments worldwide are introducing stricter regulations to reduce emissions, improve energy efficiency, and promote sustainability. Businesses must adapt to these evolving requirements or face financial and reputational risks. Technological Gaps: Many existing buildings and systems lack the technology needed to monitor and optimize their performance, resulting in wasted resources and missed opportunities for improvement. PHYSICAL RISKS Flooding Drought Sea Level Rise Heat Stress Wind TRANSITION RISKS Policy Liability Technology Production/operation disruptions (eg. power, transportation, worker availability) Supply chain disruptions Physical damage to assets (and raising insurance costs Changes in resource/ input prices (e.g. water, energy, food) Changes in demand for products and services FINANCIAL IMPACTS To address these challenges, the built environment must evolve to become more resilient and sustainable. Resilience ensures that buildings and infrastructure can withstand and adapt to disruptions, while sustainability focuses on reducing environmental impact and promoting long- term viability. Together, these principles provide a roadmap for creating spaces that are functional and efficient. 2 Copyright © 2025 Tango. All rights reserved.