Climate risk should be viewed in the same way as other business risks; to be assessed, managed, reduced and monitored. The overall impacts may be significant, affecting business operations, markets, supply chains and investment decisions.
Impacts will include both the physical, such as damage to property and infrastructure, and impacts on supply chains; non-physical, such as changes in product demand in line with the changing climate and the emerging sustainable economy; and increasing regulation and reporting requirements.
However there are also opportunities; including new markets for products that help society adapt or reduce carbon emissions, and competitive advantage for products suited to a low carbon economy.
Our services apply to both non physical and physical risks, and they cover risk identification & assessment, climate adaptation planning, and legislation & policy.
Climate risk should be included in all organisations’ risk management strategies. For organisations investing in capital assets such as property and infrastructure it is important to consider these issues upfront to avoid unnecessary costs or future asset failures or accelerated depreciation.
Our unique relationship with the University of Reading’s Walker Institute - one of the world’s leading centres of research on climate change modelling - allows us to work with you to identify the key climate change risks specific to your organisation. Using our Carbon Risk Map, we can help you identify and prioritise the key risks and opportunities arising, and we can develop value-at-stake calculations to help formulate the business case for action.
Once key climate risks and opportunities have been identified, we can work with you to develop a climate adaptation plan or adaptation strategy, helping to respond cost-effectively to climate risks and opportunities. This can include:
As climate risks increase, we are likely to see mounting regulation in this area, particularly around reporting of climate risks. Many public and quasi-public bodies are already required to develop climate adaptation plans. We can help you to meet your current regulatory requirements, advise on the likely future direction of regulation and assist policymakers with formulating future policy.