Physical climate risk has direct consequences for operating costs, asset condition and insurance liability. For a retail portfolio with significant Hong Kong exposure, the relevant risks are immediate and measurable: flooding, storm damage, infrastructure failure and the insurance claims and premium pressure that follow.
Our approach is practical and asset-focused, identifying where exposure is highest, investing ahead of extreme events and building the operational discipline to respond effectively when conditions deteriorate.
This includes:
This approach recognises that resilience is not only about physical upgrades, but also about operational discipline and the ability to respond effectively during events.
Develop quantitative framework to measure annual resilience performance for insurers and valuers
Review and align climate scenario assessments with leading science and market standards every 3 years
Integrate climate risk into investment, valuation and insurance processes
Achieved
On Track
Lagging Behind
Not Commenced
The Quayside
2025/2026 Key Indicator Progress
HK$2.21M Investment into Climate Resilience Measures
78% Reduction in Climate-related Damages(1)
10 Fewer Assets with Climate-related Damages(1)Chai Wan Car Service Centre
Progress During The Year
2025/2026 was an exceptionally severe weather year for Hong Kong. Five black rainstorms and two Signal No. 10 typhoons struck during the year, with peak daily rainfall at one automated weather station reaching 417.5mm on 5 August, comparable in intensity to the once-in-500-year September 2023 event. The portfolio came through without major losses.
Link’s climate-related insurance claims for 2025/2026 were HK$5.1 million in Hong Kong, 78% lower than in 2023/2024, which saw comparable rainfall across the portfolio. The improvement reflects cumulative resilience investment and sustained operational readiness rather than a lighter extreme weather year. Resilience investment in 2025/2026 was HK$2.21 million, following HK$3 million deployed in 2024/2025 when significant asset-level upgrades were completed across highrisk locations; the step-down in 2025/2026 investment reflects that programme reaching completion rather than any reduction in focus.
Building Community Resilience
Analysis of 2025/2026 claims in Hong Kong identified that a significant proportion of losses were attributable to extrinsic risks outside Link’s operational boundaries. For instance, leaks and bursts occurred in rainwater pipes owned or managed by nearby organisations that traverse Link’s tenant and common areas. This underscores the necessity of coordination beyond individual asset control.
This finding directly shapes how we think about resilience; physical upgrades within our own assets are necessary but not sufficient. Long-term value protection requires coordinated action with the stakeholders and community members responsible for surrounding infrastructure – a form of stewardship that extends beyond the asset boundary.
Consequently and following engagement with the parties adjacent to our properties, 29 Hong Kong assets have been prioritised for drainage inspection and repair of external pipes. These are expected to be completed in 2026/2027, further enhancing extreme weather resilience of our assets.