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Climate change risk assessment
Businesses are and will be affected by climate change in different ways depending on the nature of their operations, their supply chain, location, customers, and industry. A climate change risk assessment exercise entails identifying the most likely ways in which your organisation will be affected by climate change, assessing the scale and timeframe over which this will happen, and planning what types of actions can be taken to mitigate these impacts. Climate change risks include ii) extreme weather and changing weather patterns, floods, drought, crop failures, supply chain delays, and availability of material inputs, as well as ii) changes in regulations and taxes related to different processes, material inputs, and technologies, and iii) impacts on vulnerable social groups, which may include customers. There may also be business opportunities attached to some aspects of climate change, such as increased demand for certain products. Your climate risk assessment could be a detailed report or a short exercise in a spreadsheet.
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ESG Tracker Knowledge Base | 2024