The COVID-19 pandemic has shown how high-risk events can have a sudden and systemic impact on society and business. This points to the need for companies to reconsider how they address climate change risk management as the economy enters a new reality.
Climate change is an unprecedented risk, but also an opportunity
Climate change is another high risk that requires urgent action. Both the physical changes in our environment and the efforts to achieve global decarbonization goals will require an economic transformation, including a fundamental change in the business model.
More than 67% of global GDP is currently covered by the "net zero emissions" target, and regulators around the world are working to back their targets with regulations - such as the Task Force on Climate-Related Financial Disclosures.
Company boards are already under pressure from stakeholders to address environmental issues. With increased analysis of how the company considers risks and opportunities, the imperative to act will only be stronger.
How to deal with climate risk?
Understanding and preparing for the serious consequences of climate change is critical to any business. The company's operations are facing increasing pressure from governments, consumers, employees, and investors. To meet their expectations business should:
- Define a tailored, robust and transparent scenario analysis for different climate outcomes.
- Consider how this analysis affects the company's financial situation and strategy.
- Integrate key mitigation and adaptation measures into core business processes such as strategy, risk and investment planning.
- Reveal significant risks, opportunities and goals in the marketplace.
KPMG experts help companies meet the increasingly pressing challenges related to climate change. From demonstrating to investors, regulators and wider stakeholders that your business understands the specific risks and opportunities of climate change, to developing a strategy that will increase resilience and enable your organization to thrive in a changing world.
Detailed service list
We offer support at every stage of ESG implementation, from analysis to the selection of technologies.
We offer support at every stage of ESG implementation, from analysis to the technology.