Climate change may be the next disruption that changes the course of your organisation strategy. Or it may be just the opportunity to drive change. Climate change is becoming increasingly relevant in commercial and financial decision making.
Managing climate risk is a legal responsibility of company directors and according to recent legal opinion (Centre for Policy Development, March 2019), is increasing exponentially with time. The Recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) provides guidance on how to assess and manage climate risk under four areas – governance, risk management, strategy and reporting..
Institutional investors, such as super funds, are actively engaging with companies to better understand how climate change will impact their financial returns. As a result they are making decisions on what to invest in, or divest of, on the basis of climate change risk.
Understand how your organisation may be impacted by climate change and put plans in place to manage the risks and realise the opportunities. Adaptation creates resilience and long-term sustainability. Make your actions known through your sustainability report.
The world needs to move quickly to a low-carbon economy. Doing so is critical to minimising the impacts of climate change. For businesses, it’s the smart thing to do and will create resilience, save on operating costs and enhance your reputation. Science-based targets provide a means of aiming for decarbonisation in accordance with the Paris Agreement. For financial institutions, there is a wider role to play in facilitating the transition.
Climate Policy and Planning
Do you have a carbon or climate change policy and strategy? Do you need a climate change adaptation and/or mitigation plan? Do you understand which infrastructure and building assets are at risk from climate change? Need help? Contact us today.
“Carbon Disclosure Project research has shown that many carbon reduction activities generate an annual return on investment (ROI) of 33%, equivalent to a payback period of three years”.
From challenges come opportunities. Now is the time to plan for the risks and opportunities that climate change presents. Whether you run a business, a council, a not-for-profit or a public service, this is relevant to you.
Fully understanding climate risk can help future-proof your business..
“Convincing leaders to take action to change is no longer the main issue. Unfortunately they are seeing more and more of the unacceptable consequences of ‘Business as Usual’ on our society. The issue now is the speed of the development and the size of it. Business is more important than ever in achieving this and will only survive if they change and adapt to this reality”, Philippe Joubert, Chair of The Prince of Wales’s Corporate Leaders Group, January 2016.