The Built Environment at a Breaking Point: De-Risking Infrastructure Across North America and Europe

In 2023, the World Economic Forum highlighted research estimating that extreme-weather damage attributable to climate change averaged approximately US$16 million per hour during 2000–2019. [1]

The traditional playbook for real estate development and infrastructure engineering must evolve to address changing climate risks. For decades, North American and European construction sectors treated extreme weather as a series of rare, localized anomalies. Today, climate volatility is a structural macroeconomic threat that is actively undermining the long-term viability of traditional building materials.

Continued reliance on combustible wood framing, absorbent engineered wood sheathing, and brittle gypsum board has created a major structural vulnerability. As extreme weather events become more frequent, forward-thinking builders and developers are turning to advanced materials science to protect people, property, and the planet.

As the primary distributor of Magnum Board Products (MBP) magnesium oxide (MgO) siding and sheathing in Canada, Europe, and key U.S. network markets, AURORA Development Partners is deploying tomorrow's mineral-based infrastructure today.

The Macroeconomic Imperative: The Cost of Inaction

To build for the next century, developers must first understand the rapidly escalating scale of climate-related risks.

The Canadian Reality

Climate-related damages are both economic and environmental concerns. In its 2022 Damage Control report, the Canadian Climate Institute projected that climate impacts would reduce Canada’s gross domestic product by $25 billion in 2025 relative to a stable-climate scenario—equivalent to roughly half the country’s projected growth that year. These pressures strengthen the case for buildings and infrastructure designed for changing conditions. [2]

The United States Reality

In its January 2025 assessment, the National Oceanic and Atmospheric Administration (NOAA) identified 403 U.S. weather and climate disasters during 1980–2024 that each caused at least US$1 billion in damage. Their combined cost exceeded US$2.9 trillion, adjusted to 2024 dollars. In 2024 alone, 27 such events caused approximately US$182.7 billion in losses. Rising losses reflect a combination of climate hazards, exposure, and vulnerability—including the concentration of people and property in high-risk areas. [3]

The European Reality

The European Environment Agency estimates that weather- and climate-related extremes caused €822 billion in economic losses across the European Union during 1980–2024, expressed in 2024 prices. More than €208 billion—approximately one-quarter of the total—occurred during the four years from 2021 through 2024. These losses place pressure on property owners, businesses, insurers, and public finances, strengthening the case for investment in adaptation and resilient construction. [4]

From Climate Exposure to Risk Management

Lahaina burning on the night of August 8, 2023, viewed from Wailea. Photo: Wtp22, via Wikimedia Commons, licensed under CC BY-SA 4.0.                                                          

Extreme weather can expose vulnerabilities in both buildings and the infrastructure serving them. When those vulnerabilities contribute to disaster, the consequences extend beyond physical repairs to operational interruptions, displacement, financial losses, and legal accountability.

The 2018 Camp Fire in Northern California illustrates the stakes. Pacific Gas and Electric (PG&E) subsequently pleaded guilty to 84 counts of involuntary manslaughter and one count of unlawfully starting a fire. The case demonstrated the devastating consequences of failures in utility infrastructure and maintenance. [5]

The 2023 Lahaina wildfire offers another sobering example. Investigators concluded that the destructive afternoon fire rekindled from an earlier blaze ignited by downed electrical lines. The disaster exposed interconnected vulnerabilities in electricity, communications, emergency response, and the built environment. [6]

These events underscore the need to address infrastructure hazards alongside the vulnerability of the buildings and communities they serve. For builders, developers, and infrastructure providers, reducing risk requires decisions about design, material selection, construction, and maintenance before disaster strikes.

Material selection is one actionable part of that process. Noncombustible sheathing and siding can help reduce combustible material within a building envelope. Combined with properly engineered assemblies, connections, and protective details, these choices support a broader strategy for managing fire, wind, and water exposure.

Documented Performance: The Foundation for Resilient Design

AURORA connects these risk-management priorities with Magnum Board Products’ mineral-based building materials and collaboration with design and construction partners. The objective is to help project teams make documented, technically supported decisions that protect occupants, preserve assets, and support continuity of operations.

For builders and developers, resilience starts with evidence to inform specifications, engineering, and approval decisions.

Magnum Board Products’ fiber-reinforced magnesium oxide building materials are covered by the International Association of Plumbing and Mechanical Officials (IAPMO) Uniform Evaluation Service Report No. 986. The report evaluates structural performance, physical characteristics, and fire-resistance properties for specified applications under identified U.S. building codes. Recognized uses include wall, ceiling, roofing, and flooring substrates, backer board, and underlayment. The report also provides design information for specified wind- and seismic-load applications, subject to its installation requirements and limitations. [7]

This documentation gives project teams a defined basis for evaluating where Magnum Board can contribute to a resilient building assembly. Product selection, installation details, and engineering must correspond to the proposed application and the requirements of the project’s jurisdiction. Through its distribution relationships and technical coordination, AURORA helps project teams connect material choices with the supporting documentation needed to evaluate their use.

The KRATOS^TM Structural Insulated Panel System (SIS)

KRATOS^TM pairs steel framing with dual-layer MBP MgO and offsite construction for improved resilience.

Since 2018, the KRATOS™ Structural Insulated System (SIS) has made building easier, faster, and greener with its strong, smart steel structures. This next-generation green building system combines light-gauge steel framing with a dual layer of MBP MgO boards, closed-cell foam insulation, and continuous exterior sheathing to produce high-performance prefabricated panels that resist water, mold, mildew, fire, and pests. Manufactured offsite, KRATOS™ SIS installs faster and offers greater resilience than traditional framing. By pairing steel strength with MBP MgO and innovative offsite manufacturing, KRATOS™ delivers consistent quality, improved efficiency, and long-term durability.

Field Experience: Manufacturer-Reported Climate Resilience

Field experience complements laboratory testing by showing how particular buildings perform under actual conditions.

Innova Panel reports that more than forty homes built with its panel technology have collectively experienced an EF-2 tornado, three Category 5 hurricanes, and one Category 4 hurricane, with no reported structural failures or water intrusion into their building envelopes. These manufacturer-reported case histories illustrate the potential of engineered panel construction. They describe specific InnovaPanel assemblies and should be distinguished from performance claims for individual boards or other panel systems. [8]

Hurricane Irma: Cudjoe Key, Florida 2017

A home on Mariposa Road in Cudjoe Key provides a documented example of magnesium oxide structural insulated panel construction weathering a major hurricane. In its December 2017 newsletter, the Structural Insulated Panel Association reported that the home, constructed using Innova Eco Building System panels, survived Hurricane Irma with virtually no damage, while neighboring homes suffered extensive damage. The account illustrates the potential of an engineered panel assembly under severe conditions. [9]

Hurricane Dorian, Abaco, Bahamas 2019

Innova Panel’s disaster-resilience brochure presents an Abaco home built with its panel system that survived Hurricane Dorian amid extensive surrounding destruction. This manufacturer-reported example adds to the field experience available for magnesium cement panel construction and illustrates the importance of evaluating complete building assemblies when planning for hurricane resilience. [10]

Wildfire Resilience: Split Lake Manitoba

The Tataskweyak Transition Centre in Split Lake, Manitoba, offers a Canadian example of magnesium cement panel construction surviving wildfire exposure. Seko Construction built the facility using ZS2 Technologies’ prefabricated TechPanels®, and the wildfire hit the site as it neared completion. ZS2 reports that the building remained standing and structurally sound, with its panels intact. [11] Alongside the hurricane examples, this account illustrates the potential contribution of magnesium cement panel systems to resilient construction. The reported outcome relates to the specific ZS2 assembly used on this project.

Seismic Bracing: Magnum Board in New Zealand

Magnum Board also has documented wall-bracing test results in New Zealand. Health Based Building, based in Christchurch, publishes P21 testing information for timber-framed wall assemblies incorporating 9 mm Magnum Board. The published results establish wind and earthquake bracing ratings for the tested configuration, providing a technical basis for evaluating its use in building design. [12] This evidence illustrates another role for magnesium oxide boards: contributing to lateral-load resistance when incorporated into appropriately designed and installed wall assemblies.

Construction Efficiency and Resource Stewardship

Resilient construction also benefits from coordinated design and efficient material use. Where projects incorporate prefabricated panel systems, factory cutting and assembly can reduce onsite cutting, support consistent quality, and simplify installation. The benefits depend on the selected system, project design, and construction process.

AURORA works with project teams and manufacturing partners to evaluate how Magnum Board siding and sheathing can support their performance, installation, and resource-efficiency objectives.

Climate resilience is becoming an increasingly important consideration in development and infrastructure investment. Through Magnum Board siding and sheathing and collaboration with engineering and panel-system partners, AURORA helps project teams evaluate material choices that support durable, resilient construction. Contact AURORA Development Partners to discuss your project and request applicable technical documentation.

Build Your Resilience with AURORA Development Partners

Are you a designer, builder, developer, or distributor looking to protect your projects from escalating climate risks—or a municipal engineer seeking resilient building solutions to strengthen critical infrastructure?

Contact AURORA today to discuss your project, request a quote, or explore distribution opportunities across North America and Europe.

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Footnotes

[1] World Economic Forum. “Climate change is costing the world $16 million per hour: study.” October 2023. Discusses research estimating climate-attributable extreme-weather losses during 2000–2019.https://www.weforum.org/stories/2023/10/climate-loss-and-damage-cost-16-million-per-hour/

[2] Canadian Climate Institute. Damage Control: Reducing the costs of climate impacts in Canada. 2022. Models the economic effects of climate change relative to a stable-climate scenario, including projected impacts on Canada’s gross domestic product in 2025. https://climateinstitute.ca/reports/damage-control/

[3] Smith, Adam B. “2024: An active year of U.S. billion-dollar weather and climate disasters.” NOAA Climate.gov, January 10, 2025. Figures reflect the assessment available at publication, with costs adjusted to 2024 dollars. https://content-drupal.climate.gov/news-features/blogs/beyond-data/2024-active-year-us-billion-dollar-weather-and-climate-disasters

[4] European Environment Agency. “Economic losses from weather- and climate-related extremes in Europe.” Assessment covering 1980–2024. Reports European Union losses in 2024 prices. https://www.eea.europa.eu/en/analysis/indicators/economic-losses-from-climate-related

[5] Pacific Gas and Electric Company. “PG&E Statement on Company’s Guilty Plea Related to 2018 Camp Fire.” June 16, 2020. https://investor.pgecorp.com/news-events/press-releases/press-release-details/2020/PGE-Statement-on-Companys-Guilty-Plea-Related-to-2018-Camp-Fire/default.aspx

[6] Associated Press. “Things to know about the investigations into the deadly wildfire that destroyed a Maui town.” October 2, 2024. Summarizes the Maui Fire Department and federal investigation findings. The cause-and-origin investigation did not determine legal liability.https://apnews.com/article/269a56345a92cdbd5a65db4314a9ba59

[7] International Association of Plumbing and Mechanical Officials (IAPMO), Uniform Evaluation Service. Evaluation Report No. 986: “Magnum Fiber Reinforced MgO Building Materials.” Issued August 4, 2026; valid through August 31, 2027. Recognition is subject to the applications, installation requirements, and limitations specified in the report.https://www.magnumbp.com/_files/ugd/2832b6_0f1a34565108430e9a194a3dd90aa6eb.pdf

[8] Innova Panel. “InnovaPanel® 40 – Mother Nature 0.” Manufacturer-reported field-performance account concerning InnovaPanel building systems.https://innovapanel.com/innovapanel-vs-mother-nature/

[9] Structural Insulated Panel Association. “MgO SIPs home survives direct hit by Hurricane Irma with no damage.” SIPA Update, December 21, 2017. Industry newsletter account identifying the Mariposa Road home in Cudjoe Key and its Innova Eco Building System panels; links to the original PRWeb release. https://multibriefs.com/briefs/SIPA/SIPA122117.php

[10] Innova Panel, LLC. Energy Efficient Disaster Resistant Housing. Manufacturer brochure, PDF page 10, “Hurricane Dorian Vs. InnovaPanel®.” Presents an Abaco home as a Hurricane Dorian survivor.https://innovapanel.com/wp-content/uploads/2024/03/Disaster-Resistant-Housing.pdf

[11] ZS2 Technologies. “Earlier this summer, a wildfire swept through Split Lake, Manitoba.” Company LinkedIn post describing the Tataskweyak Transition Centre, built by Seko Construction using ZS2 TechPanels®, and its reported condition following the wildfire.https://www.linkedin.com/posts/zs2-technologies_earlier-this-summer-a-wildfire-swept-through-activity-7371182699606319105-5UG3

[12] Health Based Building. “9mm Rigid Air Barrier.” Product information and linked October 19, 2016 P21 bracing test results for a specified timber-framed wall assembly incorporating 9 mm Magnum Board. Ratings apply to the tested construction and fixing details.https://www.healthbasedbuilding.com/magnum-board/rigid-air-barrier

Linked test report:https://healthbasedbuilding.co.nz/documents/MBScionP21.pdf