Climate Risk Assessment & Mitigation Tool

For More Information

Please contact Rebecca Jinks or Felicity Richards at ACCSR for further information and to obtain a personalised solution.
212/838 Collins Street Docklands VIC
3008 Australia

T: +61 3 9049 9500
E: info@accsr.com.au

Background

Climate change is no longer just an environmental risk, it is a financial risk. As the Earth’s average temperature increases, so does its vulnerability to severe weather events caused by changes in our climate. Extreme weather events can impact labour productivity, cause property damage and weaken your supply chain and the longevity of your investments.

Climate change isn’t just a risk borne by farmers either, it is a risk to the Boardroom. Under the Corporations Act 2001, director’s duties to shareholders includes understanding market-based risk, in other words, understanding and addressing the impacts of climate change on your operations caused by market volatility. There has never been a more crucial time to identify your company’s climate risks. At ACCSR, we can help you hedge your climate risk. We transparently and collaboratively support businesses to understand their current exposure, as it relates to climate change, and develop effective and meaningful ways to adapt to a changing environment, and mitigate material business risks.

How does it work?

To better equip you with the knowledge needed to climate-optimise your business, ACCSR has sourced data from the Australian Bureau of Meteorology and CSIRO to develop a robust and reliable Climate Change Risk Assessment & Mitigation Tool to identify opportunities for risk exposure mitigation.

ACCSR will develop individual and specific solutions per client, with the below being the core service options recommended to complete a climate risk assessment.

  1. Risk assessment & exposure mapping
    To identify current risks and exposures related to climate change, based on future forecasting and historic extreme weather events.
  2. Strategy for adaptation
    Specific and tailored strategies aligned with business objectives to achieve real adaptation and reduce current exposures.
  3. Evaluation of mitigation approaches
    Assess and understand in detail the current climate change adaption approaches or programs of the business and evaluate effectiveness and alignment with the Adaptation Strategy. This may also be undertaken bi-annually to understand the impact of the adaptation strategy in operation.
  4. Facilitation of a stakeholder mitigation and awareness workshop
    Educate and engage key stakeholders on the current climate change related risks of the business (assets or investments) and achieve support for the recommended mitigation approach.

Creating value for your business

As with any risk assessment, our tool and report allows your business to identify and mitigate potential hazards or operational exposures at risk due to climate change and extreme weather events. The service will facilitate engagement and education of employees to deepen their understanding of climate change, global warming and the direct impacts it has on their lives.

Our service will allow your company to publicly demonstrate the tangible efforts being made to protect investors and stakeholders from unforeseen risks to your operations. The service also allows for brand strengthening by placing your company as a leader in the space as a responsible global citizen, accepting and addressing the real risks posed by climate change and global warming.

Similarly, if you are a listed company, by undertaking a risk assessment and developing a mitigation strategy you will be contributing to satisfying the ASX Corporate Governance Best Practice Guidelines on risk. The guidelines require listed entities to establish a sound risk management framework. Which in today’s society should include measures against climate change and the associated risks.

Finally, by understanding your business risks and exposures, and planning to mitigate and avoid an impact, your business will realise cost savings by being proactive rather than reactive. Responding to a catastrophic event causing damage to an asset has a much greater price tag than mitigating and avoiding the event before it is realised.