Emerging financial risks from climate changes on building assets in the UK Abdullah Alzahrani Municipality of Taif, Taif, Saudi Arabia, and Halim Boussabaine and Khalid Almarri Faculty of Engineering and IT, British University in Dubai, Dubai, United Arab Emirates Abstract Purpose – The different scenarios of climate change, such as floods, temperature change and storms, are considered the main drivers influencing the building sector. Understanding how and when these climatic risks will emerge, specifically financial risks, is pivotal in dealing with these risks and applying the adaptation and mitigation strategies so as to minimise the effects and damages. Thus, the purpose of this paper is to discover the financial risks emerging from climate change impact on the building sector and determine the timescale of occurrence for such risks. Design/methodology/approach – The research methodology formulated in this study is founded on a systematic literature review and statistical analysis. Built on this, the potential financial risks emerging from climate change scenarios (CCS) were identified and designed as a questionnaire to collect data from UK expert professionals. Statistical methods were used to rank and compare the outcomes of the survey. Findings – The research observed that around 40 per cent of the participants in this study indicated that one-third of the total identified financial risks (23 factors) would emerge within 5-10 years. The most important factors are increased insurance excess and additional expense in insuring buildings in flood risk zones, whilst the least important financial risks are inability to repay debts and un-insurability because of climate change. Research limitations/implications – This study is limited to the UK, and regional implications are not covered. However, it is a starting point. Originality/value – The main contribution of this research project is establishing and developing clusters of the potential risks emerging from CCS, which can assist professionals in the building sector in the management and development of strategies to cope with these emerging risks. Keywords Project management, Climate change, Risk management, Facilities management, Building, Assets, Asset management, Building life cycle, Financial risk, Emerging risks Paper type Research paper Introduction The theories behind the emergence of climate change are mainly attributed to the increase of human activities on the earth, especially during the beginning and continuation of the industrial era, which is responsible for the production of huge amounts of greenhouse gas emissions (McMullen and Jabbour, 2009; Woodward, 2008; Hertin et al., 2003; Changnon, 1995). These drivers have significantly contributed to the different ways in increasing the frequency of climate change scenarios (CCS) during recent decades (De Wilde and Coley, 2012; Steenbergen et al., 2012; Garvin et al., 1998; Pretlove and Oreszczyn, 1998). Increases in severity and the frequency of extreme events of CCSs is also owing to the changes in the temperature of the sea’s surface (Solomon et al., 2007). Climate change has become a global F 36,9/10 460 Received 24 May 2017 Revised 2 October 2017 Accepted 2 November 2017 Facilities Vol. 36 No. 9/10, 2018 pp. 460-475 © Emerald Publishing Limited 0263-2772 DOI 10.1108/F-05-2017-0054 The current issue and full text archive of this journal is available on Emerald Insight at: www.emeraldinsight.com/0263-2772.htm