The top 5 reasons why experience matters when identifying climate risks and opportunities
Written by
Max Van Biene, Global Head of Client Impact
The introduction of the Australian Sustainability Reporting Standards has sparked an inundation of advisory businesses claiming they can support clients on their climate disclosure and reporting journey.
However, it is becoming increasingly clear that very few have the proven experience or pedigree in climate risk assessment and scenario analysis to ensure outputs provide strategic or operational value. This results in organisations feeling they do not receive value for their consulting spend and possibly in non-compliance to the requirements of the new disclosure standards.
Instead, working with advisors that specialise in climate and sustainability, such as Edge Impact, will ensure that the outputs are evidence-based, fit-for-purpose, understandable for all stakeholders, and leverage the significant experience in climate risk assessment across a range of sectors and industries.
The message from government and regulators is clear: companies should start preparing now for mandatory climate-related financial disclosure by planning across governance, strategy, risk management, metrics and targets.
Laura Reed, Principal Consultant, Governance & Transparency
The top 5 reasons why experience matters when identifying climate risks and opportunities
- Leveraging quantifiable data-led insights
Access and understanding of climate change models and scenarios on the physical exposure of the business to extreme climate events provide a tangible, science-led evidence base upon which to prioritise risks and make decisions.
- Utilising sector-level or industry-specific insights
Application of climate risks and opportunities that are common across industries or sectors enable efficiency of delivery and a common baseline for analysis across peers and supply chains. For example, the application of previous analysis on the impact of extreme heat on health care providers, or the impact of extreme weather on certain regions on agricultural yields. These efficiencies can only be realised through using a provider that has done this work before.
- Translating risks and opportunities into on-ground action
Experienced climate risk practitioners will be able to help translate key insights into operational, on-ground mitigation actions. This provides more than just a risk register but an operational action plan engaging multiple business units.
- Conducting a ‘dry run’ before due date
Effective support should enable your business to complete a full ‘dry run’ of climate disclosure reporting before the due date, mitigating your compliance risk.
- Engaging and upskilling all team members
Truly experienced advisors will understand the nuisance and mindset of various teams when it comes to understanding climate risk. From your executive team to your risk and finance team, Each stakeholder group requires.
Edge Impact has been undertaking climate risk assessments for the last 15 years across a range of sectors and industries. We have one of Australia’s largest and most experienced teams that specialise in climate risk and disclosure.
Whether through the identification of specialised expertise or upskilling for all directors, the need for climate governance proficiency is undeniable and has been emphasised by professional bodies such as the AICD.
Mark Siebentritt, Executive Director
With our in-depth knowledge of reporting standards, whether ISSB, CRSD or ASRS - our readiness assessment process will consider which standards are relevant for your business.
Download the ASRS Readiness Assessment Guide here.
Explore our resources
Explore our range of Mandatory Climate-Related Financial Disclosure resources
Contact Mark Siebentritt, our Global Practice Lead for Climate or get in touch here.
