"Pandemics and climate change have been identified by the World Economic Forum as a top 10 global risk year after year. COVID-19 has highlighted the importance of corporate resilience and planning for future risks."
Climate change is now viewed as the next unprecedented risk, so how can organisations effectively address their risk management to increase enterprise resilience and minimise severe financial implications?
This video focuses on the new reality. I consider the opportunity post-COVID-19 recovery planning presents for companies to analyse and act on how climate related risks could impact their business over the short, medium and long term:
Integrated planning: Business leaders should focus on developing plans for managing climate risk that are integrated into the wider corporate strategies.
- Identifying the risks and opportunities: Consider the risks and opportunities and how these relate to other environmental, social and governance priorities and their wider enterprise risks.
- Analysing and enhancing supply chains: Look across supply chains to identify material risks like water scarcity and opportunities, like the ability to leverage more renewable energy, and to develop alternative options such as re-routing supply chains to use more climate aligned suppliers.
- Take a holistic view: Consider cost, risk, brand benefits and wider ESG factors such as social drivers.
Collaboration will be key in our efforts to lower global warming, where bridging risk and strategy will be crucial for transformational change across our economy.
To understand what climate risk means for your business and what your plan for action should look like, take a look at our latest guidance: