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TO DETERMINE WHAT TO DO
FOR YOUR COMPANY,
START WITH THE FOLLOWING
1. View the changing climate as
a long-term driver of business
change
2. Look for opportunities for business
growth as well as threats from
climate change
3. Ensure that climate assessments
are compatible with existing sys-
tems and strategies
4. Use climate science appropriately;
be aware of its potential and
limitations
5. Combine breadth and depth in
assessments, supporting high level
strategic overview with detailed
analysis in selected areas
6. Work closely with colleagues and
stakeholders at all levels
Climate risks should be considered alongside other risks when decisions are made
worse with climate change, stopping risk managers and the board. Climate risk general resilience, improving efficiency or
production and costing hundreds of management cannot be undertaken by one cutting costs within the organisation)
thousands of dollars each year. person alone. It requires participation from
For a major transport company we have the board down. Ultimately, climate risks should be
seen the risks posed by flooding to Through experience of helping considered alongside other risks when
schedules and infrastructure. But we also organisations across sectors to assess and project, policy and strategic decisions
saw that the implications of heat on assets, respond to climate risks, we have several are made.
people and ICT networks were poorly observations about successful approaches:
understood. These kinds of impacts haven’t
■
raising internal awareness of climate Review, review, review
occurred before, but could increase in change is key: time and time again, Climate change is dynamic, and both
coming years if not managed wisely. workshops and interviews have information on climate risk, and adaptation
successfully helped transfer and collect experience, are growing. Managing climate
Develop your responses vital information risks needs to be a continuous process
Understanding your risks leads naturally to
■
high-level messages about priority risks based on regular review and assessment.
the next step, which is to develop your and opportunities can be used to secure Ideally climate risk should be included in
responses. You need to start the ongoing the board’s buy-in for more detailed existing mechanisms for strategic planning
process of managing risks effectively by assessment and action and monitoring business risks. At the same
making adjustments to plans and
■
capital plans and investment strategies can time, ‘mainstreaming’ climate risk in this
operations. Responses include transferring be adjusted to make the long-term way is prudent and more transformative
risks (for example, through insurance or consideration of future climate change action could ultimately be required by
partnership work), avoiding risks and explicit (this reassures lenders and attracts your business.
reducing risks (by adapting processes and investment) Climate change isn’t going away. It is a
operations). Of course simply accepting
■
many ongoing initiatives help to mitigate long-term strategic issue that is likely to
the risk – the ‘do nothing’ response – climate risk, for example water efficiency become more important as early-movers
can be valid too, but only if supported strategies, flood risk assessments, business seize the new opportunities, or the slow-
by evidence. continuity plans, etc. These are often to-respond disappear. Businesses must start
The appropriate response depends on easily modified to accommodate to prepare themselves for climate risk and
your organisation’s risk appetite, as well as climate risks its impact on profit.
on practical concerns such as resources and
■
support for climate risk management is
cost. Thus decisions about adaptation more easily secured if the additional Alex Harvey is a senior climate change
responses will need to be discussed with benefits of adaptation responses are adaptation consultant at AEA
stakeholders, including operational staff, highlighted (for example, enhancing > www.aeat.co.uk
SB FutureProof ❘ April 2010 11
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