Worried about your exposure?

“Failure to take climate change into account will put companies at risk from future legal actions from their own shareholders, their investors and clients. Climate change must inform underwriting strategy – from the pricing of risk to the wording of policies. It must guide and counsel business strategy – including business development and planning.” Lloyds of London, June 2006

Climate change risks are broad and may affect every aspect of your business. To survive you will need to assess the impacts of climate change on fixed assets and future capital investments. We can lessen the impacts on operations through our business continuity management systems. To thrive, you will need to use strategic foresight to hunt emerging opportunities. We have a number of in house prospecting tools to increase your ability to capture opportunities.

Although many businesses will become increasingly exposed to risk from the direct physical impacts of climate change, there are also indirect risks to companies that neglect their fiduciary and disclosure obligations by failing to properly account for climate change risk.

As climate risk disclosure becomes a critical issue for many boards, corporations are being asked by their shareholders to assess risk and disclose liability. We can help you develop internal capacity to better manage climate risk by integrating climate into you existing risk management process. Climate Risk Pty Ltd delivers tailored workshops and executive briefings to keep directors and officers current.

How Climate Risk works for you. Climate Risk Pty Ltd will identify, audit and verify your risk. If you have a significant risk we can work with you to establish and implement a Business Adaptation Strategy and integrate climate risk into your existing risk management systems.

At Climate Risk we take a systems approach to identifying and managing climate change risks which means that we look at the interconnections between impacts and effects to create an overarching understanding of the risks and opportunities for any business.

For any company we will cover the following core risks:

1. Direct Physical Risk – Including the physical effects of climate change on assets and investments as well as the increased costs of obtaining insurance cover for those assets. Also the risks of sudden depreciation of assets due to withdrawal of insurance cover or other climate related market change. We can evaluate and refresh your Business Continuity Management systems to accommodate this threat. Work is in accordance to AS NZS 4360 or as required.
2. Regulatory Risk – Including compliance with an evolving regulatory environment such as changes planning codes, regulated industry standards and risk disclosure compliance. This may include emissions liabilities as well as impacts or adaptation regulation.
3. Market and Competitiveness Risk – Including changing markets, loss of productivity with respect to competitors and the effects of the changing relative value of assets based on exposure to primary (direct) and secondary (market adaptation) climate change impacts.
4. Litigation Risk – Including the liabilities associated in inadequate disclosure to trading partners of associated climate change risks or inadequate preparation of the traded commodity for climate change. This is relevant to multi-decadal assets such as property and infrastructure.
5. Reputation Risk – Including the market or investor perception of a failure to act or adapt to climate change impacts and expected regulatory evolution.
6. Emergent Risk - Identifying new and future risks