COVID-19 demonstrated what an immediate and systemic impact major risk events can have on society and business operations. This has highlighted the need for companies to reconsider how they address climate-related risk management as the economy moves into a new phase, in particular with respect to green growth.
Climate change is the next unprecedented risk and opportunity
Climate change is the next high impact, high probability risk and opportunity that requires urgent action. Both physical changes in our environment and actions to meet global decarbonisation targets will require economic transformation, led by fundamental business model change.
Over 67 percent of global GDP is now covered by a ‘Net Zero’ target and regulators around the world are moving to back up their targets with regulation such as the Taskforce on Climate-Related Financial Disclosures.
Boards were already under pressure from stakeholders to address environmental issues. Now, with heightened scrutiny on how a company embraces risk and opportunities, the imperative to act will only get stronger.
Are you ready to navigate climate risk with confidence?
Understanding and planning for the likely profound implications of climate change on your business is crucial. Your response will meet increasing pressure from governments, consumers, employees, investors and lenders. To meet their expectations, you will need to:
- Define tailored robust and transparent scenario analysis under a range of climate outcomes.
- Consider how this analysis impacts your financial position and strategy.
- Integrate key mitigations and adaptations into core business processes like strategy, risk and investment planning.
- Disclose material risks and opportunities as well as targets to the market.
How we can help
KPMG’s Climate Risk and Decarbonisation Strategy experts help businesses meet the increasingly pressing challenges of climate change. From demonstrating to investors, regulators and wider stakeholders that the business understands the specific risks and opportunities climate change presents, to developing a strategic response that enhances resilience and positions the business to thrive in a changing world.
We have more than 120 years’ experience in supporting companies through change. We bring together experts in risk consulting, strategy, climate change and technical accounting to drive strategic value. Our bespoke assessment tools help identify and analyse the risks and opportunities your business faces. This combined with our experience across the low carbon transition, supply chain management, sustainable finance, risk and controls and financial reporting means we can help you achieve quick wins and manage your climate risks effectively for the longer term.
Why KPMG?
Drawing on KPMG’s deep expertise and capabilities, we can support you at every stage of your climate change journey:
Strategic insight
We bring together experts in risk consulting, strategy and climate change, technical accounting and tax expertise to drive a strategic, value lens on climate risk. We combine this with wide experience of advising at board level to help you make informed decisions on your future strategy.
A dynamic view of risk
Our priority risk assessment tool Climate IQ measures the probability and impact of risk. It also gauges the speed at which risks could materialise and the interconnections between them that drive cause and effect. This allows you to develop more accurate scenarios and make better decisions on your mitigation and adaptive response.
Extensive experience in adaptation
Our experience with corporates spans energy diversification, operational decarbonisation, supply chain management, marketing and brand management, sustainable finance and fuel switching. We use this knowledge to help you achieve quick wins and manage your climate risks effectively for the longer term.
Contact KPMG’s Climate Risk and Decarbonisation Strategy team today to find out how we can help.
