In most G20 jurisdictions there is a legal obligation to disclose any material risk in financial reports, and this includes climate-related risks. This trend will only grow in scope. Users and providers of investment and credit are recognizing the risks and opportunities inherent in a changing climate. Yet they are finding a lack of useful and consistent information to assist them. CCA has the capacity and experience to assess specific corporate climate risks, to assist corporations to report on ESG issues, and to answer due-diligence and fiduciary duty questions related to climate risk, high carbon assets and adaptation goals which may arise from investors, lenders and insurers. Lack of consistent information has hindered investors from considering climate-related issues in asset valuation and allocation processes. CCA assessments can reveal:
CAA can also keep clients updated on emerging disclosure standards relevant to climate-related risks. This includes governance and management issues related to risk identification, assessment, measurement, reporting and verification.
CCA is able to draw on international best practice to recommend policies on a range of climate-related issues faced by organizations. Bespoke appraisal services can analyse and present policy recommendations related to your organization in your specific business sector.
Where are your company's strengths in weathering the impact of climate change, and in transitioning through the economic shakeup that will accompany the agreed goal of a zero carbon world? What advantages do you have in your sector to both adapt to the physical effects of climate change and take the lead in working with the authorities on mitigation and GHG reduction? CCA will make recommendations on how to maximize and enhance these advantages.
How climate-proof are your operations and markets? How cognizant is your organization of the likely regulatory impact of Paris Climate Agreement targets on your sector? Do you have the right governance structures to monitor, measure, adapt and create a resilient organization?
What market opportunities lie in your sector for services, process design and goods which will be in greater demand as the world responds to climate change in terms of both adaptation and mitigation? What opportunities arise from becoming an early mover in the transition, leading your sector and engaging the authorities at the regulatory design stage?
Where are you most exposed in terms of assets, supply chains and changes in customers and markets? We can model the relevance of extreme weather events, and knock-on effects on transport, health, migration and broad economic and political stability. Financially, we can advise on where potential liabilities lie from investors, insurers and customers claiming disrupted business. What are the risks of inadequate or late transition to the low-carbon economy mandated in the Paris Agreement, and what are the brand, employee morale and social license risks most likely?
CCA SWOT analysis can provide the following policy recommendations as outputs: