What does Resilience CapEx refer to?

Resilience CapEx refers specifically to capital expenditures that are directed towards adapting assets and infrastructure to withstand and mitigate the impacts of climate risks. This can include investments in enhancing the durability of buildings, improving water management systems, reinforcing transportation networks, and implementing other measures that strengthen the capacity of assets to cope with climate-related events, such as floods, storms, or heatwaves. The focus is on ensuring that existing and new assets are better prepared for the changing climate, which is critical in building sustainable communities and reducing future losses.

The other options pertain to different areas of investment. Luxury projects, renewable energy initiatives, and urban development expenses do not specifically target the adaptation or improvement of existing assets in response to climate challenges. This differentiation reinforces why the correct choice emphasizes resilience against climate risks, which is central to effective sustainability and climate adaptation strategies.