Climate change is a buzzword for alarm worldwide for organisations.
Are you ready for the threats that climate change will bring?
I don’t mean only reputational failure for not meeting environmental standards but also physical risks, supply chain disruptions and financial risks of climate change.
Here are some thoughts regarding strategies to be sustainable and resilient in the face of climate threats.
Climate-related risks can be divided into two:
- Physical risks: extreme weather events, such as floods, fires, or droughts, can impact your operations
- Transition risks: transition risks are the risks that arise during the transition to a low-carbon economy
How do you assess these threats in your organisation?
Threat identification and understanding are the first steps for an organisation to build resilience against these threats.
After you have identified potential threats, the next step is prioritisation.
Which threats can affect you the most or are most urgent?
Next, you can use a calibrated risk-assessment matrix that evaluates each risk, such as adopting green technologies or longer-term strategies, such as securing climate-friendly supplies or redesigning facilities to minimise the effects of extreme weather events.
An important strategy is to incorporate climate threats to be able to make strategic decisions. Consider climate change while making important decisions, such as investing in a new supplier or opening a new facility.
The key is constantly and systematically considering climate threats while making strategic decisions. This would build stakeholders, customers, suppliers or employees and communicate your initiatives, such as investing in climate risk mitigation, to each stakeholder. This would not only make them trust you more but would also contribute to your brand image.
To answer the question: Is your organisation ready for climate-related risks?
If you are aware of potential threats, prioritise them, build a culture of climate resilience, plan and adapt, incorporate repeat risks in business decisions and communicate, you are well on your way to being prepared!
Final Thoughts
While climate change is a menacing antagonist, a proactive and immediate role in sustainability and climate resilience could turn these threats into opportunities for you as an organisation.
After all, preparation is half the battle!
