Know your Climate Risks
The changing climate and transition to a low-carbon economy creates financial risks and opportunities for business and investors.
How does climate change impact your business now and in the future?
What are the risks from climate hazards such as bushfires, flooding, severe storms, storm tides, and heatwave in your supply chain, to production, to your staff and at your sites?
Are you required to make Mandatory Climate-related Financial Disclosures in your annual report?
Have you been asked by your customers to provide climate and carbon information for their mandatory reporting?
The Ecoefficiency Group can help you to better understand climate change impacts and hazards, review the risks these present to your business now and under future global warming scenarios, and develop strategies and plans to respond to these risks, making you much better prepared to meet reporting requirements.
Gap Analysis and Roadmap
If you are at the start of the journey and looking for guidance, understanding and assistance, then the Ecoefficiency Group can help. We can help whether your business is looking at climate risk management from a voluntary perspective, customer commitments, or to meet mandatory reporting requirements. We can explain reporting requirements and the data needed to meet them, helping you and your staff to understand what’s involved and prepare a realistic gap analysis and roadmap to get where you need to be.
Climate Hazard and Risk Analysis (Now and for future climate scenarios)
We’ll connect you with the latest Australian and world science on climate hazards, climate change, and future global warming. We’ll lead you through comprehensive exposure and impact assessments of climate risk. We begin with the situation now and look at how it changes under future global warming levels (GWLs) including those scenarios required (1.5ºC and 2.5ºC) for mandatory climate related financial disclosure under recent amendments to the Corporations Act.
Set Goals, Strategy and Targets
We’ll work with you to to set realistic climate adaptation goals and progress them through careful strategy and plans. We’ll recommend a way forward whether your focus is on very basic goals or detailed plans and targets. We’ll recommend next steps including the pursuit of follow-on quantitative risk assessments.
Meet Reporting Requirements
Use our reporting templates to meet the requirements for mandatory or voluntary disclosures. We can also construct reports to meet your customer commitments. Your reports will be concise and clear.
Take the Next Step To Managing Climate Risks
Book a FREE 20 minute call to discuss your needs.
Frequently Asked Questions
Scenarios are plausible climate futures, based on increasing concentrations of greenhouse gases in the atmosphere. They rely on computer-based models of the earth-ocean-atmosphere system. Climate hazards are often described under future scenarios called Global Warming Level (GWLs) define the global averaged increase in temperature since the pre-industrial period – typically for 1.5, 2, 3 and 4ºC above the pre-industrial average. These represent increasingly severe climate outcomes for humans – regardless of when we get there. Understanding when we could reach a GWL depends on our understanding of how the Earth actually responds to changes in greenhouse gases.
Another type of scenario are the Representative Concentration Pathways (RCPs) used in IPCC reports. These model greenhouse gas concentrations in the atmosphere as they change over time taking into account varying levels of emissions reduction policy and action world-wide. The four RCPs (2.6, 4.5, 6.0 and 8.5) range from very high (RCP8.5) to very low (RCP2.6) future concentrations of carbon dioxide in the atmosphere in 2100.
Book a call with us to discuss how your business may be impacted in these climate scenarios and what you can do to reduce the risk.
Hazards refer to possible future outcomes or events that may cause damage to assets and property or loss of life, injury or health impacts. Examples are bushfires, flooding, heatwaves, severe storms and storm surges. Our exposure (people, assets, property) and our vulnerability combine to influence how much these hazards may impact us.
Book a call with us to discuss how your business may be impacted in these climate scenarios and what you can do to reduce the risk.
Risk is the potential for adverse consequences from exposure to these hazards. These may be consequences for humans or ecological systems, but can also refer to consequences for business (impacts on supply chains, production, distribution of products and services), investment portfolios, and reputation.
Its best to start with a good qualitative understanding of climate-related hazards and risks to your business. Whether you have a single location or many sites, the hazards are unique to your location and your business. Take in the full scope of these risks and focus where the priorities for management are highest. This analysis will benefit from available quantitative information e.g. about bushfire hazards or from flood models. Ultimately you may need to quantify some hazards in much more detail to better understand these risks e.g. how high could flooding or storm tide reach at high flood levels, what temperature and for how long might trigger business process changes, what supply lines may be impacted by different events? These analyses may be possible in-house, but often will require specialist and highly technical quantitative investigation and modelling projects.
Book a call with us to discuss how your business may be impacted in these climate scenarios and what you can do to reduce the risk.
Climate-related financial disclosures are now mandatory for many Australian companies commencing from 1 January 2025 under recent amendments to the Corporations Act 2001 (Schedule 4 just posted in force) and administered by ASIC. The new regime adopts a staged approach: the largest emitters and corporations (Group 1, roughly equivalent to the ASX 200 and their private company equivalents) must disclose from 1 January 2025. Smaller Group 2 and Group 3 entities will be phased in from 1 July 2026 and 1 July 2027, respectively.
An entity required to report must do so by including climate statements in a new ‘sustainability report’ and added as a fourth part to their annual report (alongside the Financial Report, Directors’ Report, and Auditor’s Report). These climate statements must be prepared in line with the AASB S2 mandatory climate standard (Australian Accounting Standards Board) and accompanied by a directors’ declaration that they meet Act requirements.
Book a call with us to discuss if this will impact your business.
You may not be in Group 1 or 2 and may have a few years before mandatory reporting is required, or perhaps your company isn’t big enough to fit into any of these groups and so you won’t have to comply with any mandatory reporting.
However, we are finding that companies that are required to report and starting to ask their suppliers to provide climate and carbon related data in order to continue supplying to them as part of a contracted agreement.
Understanding these risks now, and starting to look at carbon impacts of your company now will give you a leg up above your competitor when you can already show you have taken action to reduce your carbon impact and understand your carbon risk.
Book a call with us and we can discuss your specific pathway to climate risk reduction.