Is your business climate resilient, do you know what your climate-related risks are?
Whilst more still needs to be done to reduce our carbon emissions and manage a global temperature rise of 1.50 – 20 Celsius, have you thought about how future climate change impacts will affect your business? Investors are increasingly concerned that businesses aren’t aware and need to be. A UN task force for the disclosure of climate-related risks recommends voluntary reporting and has issued guidance.
I have just finished an interesting assignment advising a major UK utility on this issue.
Using a science-based approach to model the future climate projections across their assets I considered different scenarios such as heatwaves, heavy storms and other climate variables over time. A methodology whereby their asset managers in the investment planning cycle can consider if adaptation actions are required and when for was then devised.
If you are an asset manager or an asset owner have you considered climate implications, not just on static assets, but on disruption to supply chains and other aspects of your operations? Demonstrating this understanding to investors and your clients will only become more important as climate impacts increase and cause more disruption.
If you want to discuss further please get in touch.
This blog was also published as an article on Paul’s Linked In page 2nd May 2018
Copyright Paul Toyne