Climate and environmental (CE) risks (CER) to our economy and society are accelerating. CER include climate-related physical risks such as floods, storms, or changing growing seasons; climate-related transition risks such as carbon pricing and climate litigation; and environmental risks such as biodiversity loss. It is now well accepted that CER can impact asset values across multiple sectors and pose a threat to the solvency of financial institutions (FIs). This can cause cascading effects with the potential to undermine financial stability. The adoption of CER analytics will ensure that CE risks can be properly measured, priced, and managed by individual FIs and across the financial system. This is also a necessary condition to ensure that capital is allocated by FIs towards technologies, infrastructure, and business models that lower CER, which are also those required to deliver the net zero carbon transition, climate resilience, and sustainable development. These twin tracks - greening finance and financing green - are both enabled by CER analytics being appropriately used by FIs. The UK is a world-leader in Green Finance (GF). UK FIs have played a key role in GF innovation. Yet, despite these advances and leadership in almost every aspect of GF, UK FIs cannot secure the data and analytics needed to properly measure and manage their exposures to CER. While the last decade has seen the exponential growth of CE data, as well as improved analytics and methods, often produced by world-leading UK science, the vast majority of this has not found its way into FI decision-making. Our vision for CERAF is to establish a new national centre to resolve this disconnect. CERAF aims to enable a step-change in the provision and accessibility of data, analytics, and guidance and accelerate the integration of CER into products and decisions by FIs to manage CER risks and drive efficient and sustainable investment decisions, thereby delivering the following impacts: - Enhance the solvency of individual FIs in the UK and globally and so contribute to the resilience of the global financial system as a whole for all, as well the efficient pricing and reallocation of capital away from assets at risk to those that are more resilient. - Underpin the development and the growth of UK GF-related products and services. - Enable a vibrant ecosystem of UK enterprises providing CER analytics and realise the opportunity for UK plc of being a world-leader in the creation and provision of CER services. Our vision is that CERAF will be the nucleus of a new national centre established to deliver world-leading research, information, and innovation to systematically accelerate the adoption and use of CER data and analytics by FIs and to unlock opportunities for the UK to lead internationally in delivering CER services to support advancements in greening finance and financing green globally It aims to overcome the following barriers: 1) Making existing data on hazards, vulnerabilities, and exposures more accessible and useable for FIs, with clearly communicated confidence and with analytics that does not yet exist being secured; 2) Consistency and standards to reduce fragmentation, facilitate innovative products and enable the efficient flow and use of data; 3) Assurance and suitability are needed to understand which CER analytics are best suited for particular uses and provide transparency into underlying data and methodologies, so that CER analytics can be trusted and used; 4) Unlocking innovation through supporting FIs to test new approaches in a lower-risk way; and 5) Building capability, knowledge, and skills within FIs to analyse and interpret CER data. Resolving these barriers is a necessary condition for repricing capital and avoiding its misallocation, and achieving the UK's ambitions on GF.

The Innovative Construction Research Centre (ICRC) is dedicated to socio-technical systems research within the built environment, with particular emphasis on through-life performance in support of the client's business operations. Our vision is for a research centre that not only supports the competitiveness of the architectural, engineering, construction and facilities management sectors, but also supports societal needs for built infrastructure and the broader competitiveness of the UK economy. The domain of enquiry lies at the crucial interface between human and technical systems, thereby requiring an inter-disciplinary approach that combines engineering research methods with those derived from the social sciences. The ICRC's research portfolio is organised into six themes: (1) Integration of design, construction and facilities management. Concerns the through-life management of socio-technical systems within the built environment. Topics of consideration include: integrated logistic support, design for reliability and systems integration for building services. Of particular concern is the way that firms within the supply chain are integrated to provide solutions that add value to the client's business. (2) Knowledge management and organisational learning. Addresses the means of supporting knowledge flows across extended supply chains and the extent to which procurement systems learn across projects. Of particular importance is the design of learning mechanisms that extend across organisational boundaries. Also investigates the degree to which the construction sector can learn from other sectors, i.e. aerospace, automotive, retail, defence. (3) Human resource management and the culture of the industry. The construction sector is too often characterised by regressive approaches to human resource management (HRM) with little emphasis on developmental to support innovation. Of particular importance is the concept of 'high commitment management' that has emerged as a central component in the quest to link people management to business performance. Any attempt to improve HRM practices in the construction sector must also recognise cultural barriers to the implementation of new ways of working.(4) Innovative procurement. Includes legal, economic and organisational aspects of procurement systems. The last twenty years has seen a plethora of new procurement methods seeking to encourage different behaviours and allocations of risk. Many such initiatives experienced significant reality gaps between technological intent and resultant behaviours. Of particular importance in the current context is the notion of performance-based contracting which seeks to reward parties on the basis of building performance.(5) Innovation in through-life service provision. Most innovation in facilities management (FM) is concerned with service provision rather than the design and construction of the built asset. The inclusion of FM-service provision reflects the ICRC's strategic focus on through-life issues. The shift towards service provision is reflected in practice through procurement approaches such as PFI/PPP. But the issue has a wider significance as construction contractors increasingly embrace service philosophy. (6) Competitiveness, productivity and performance. Focuses on techniques for performance improvement, coupled with a broader emphasis on competitiveness and profitability within the marketplace. Techniques for performance improvement include: process mapping, benchmarking, value management, risk management and life-cycle costing. Also seeks to assess the competitiveness of the construction sector in comparison to other countries, and to achieve a broader understanding of the economic context within which firms operate.