Climate risk and TCFD
We help clients reduce their climate risks, manage their TCFD responsibilities and increase their resilience to the impacts of climate change.
With a changing climate comes an evolving risk profile for businesses. Changes in the geographic spread, frequency and intensity of weather events lead to risks of physical damage and market disruption. As the global economy adjusts to climatic trends, regulatory responses will tighten and fiduciary duty will lead to greater disclosure of entities’ transitional and physical climate-related risks. Together, these factors can affect business operations, market perceptions, profitability and liability.
We help our clients to face the challenge of increased climatic uncertainty and to develop solutions that remain valid in a vast range of future climate scenarios, integrating uncertainty into decision-making.
Our climate risk services
Our climate risk solutions are designed to help governments and corporates develop strategies to manage, mitigate or adapt to the impacts of climate change. We frame our services in line with the Taskforce on Climate-related Financial Disclosures (‘TCFD’) recommendations. Our robust, phased approach is designed to cater to clients at every stage of the climate risk journey.
|Climate risk aspect||Our services|
Brief sessions to inform your Board of Directors of the drivers and implications (both in terms of risks and opportunities) of identifying and managing the impact of climate change in the short-, medium- and long-term resilience of your business.
A necessary precursor to managing and disclosing climate risk is the establishment of an effective governance structure around the issue. We can review your current governance and risk framework against ASX principles, AS5334, ISO 31000 and industry best practice, and help you implement a fit for purpose governance structure.
|Change management and training
Assistance in building capacity across the organisation to support decision-making and change management as you embed climate change into your strategy.
|Risk Management||Vulnerability and detailed climate risk assessments
Assistance in assessing which functions are critical to the operation of your business using a “systems at risk” approach, and exploring what climate events and/or trends can impact your critical functions to identify and evaluate physical and transition risks across your organisation’s value chain.
|Risk management strategy
Revisit and update your Risk Management processes and risk mitigation decision-making to integrate climate risks into your overall risk management strategy.
Development of a range of plausible and internally consistent scenarios to ‘stress test’ your organisation’s resilience and planned adaptation measures to identify strategic and risk management sensitivities (‘blind-spots’) and opportunities.
Development of action plans, adaptation measures, monitoring programs or Dynamic Adaptation Pathways (DAP), which are designed to remain valid under a broad range of climate futures.
|Climate change strategy
Review of your organisation and its operating context, and assistance in developing a policy, strategy and action plan for improving the identification and management of climate-related risks and opportunities and integrating climate change considerations into your business decision-making.
|Metrics and Targets||Science-based targets
Development of science-based emissions reduction targets in line with the latest guidance and the Science-based Target Setting Manual by the Science-based Target Initiative (SBTi).
|Metrics, KPIs and other targets
Development of financial and non-financial metrics, key performance indicators and other targets for a range of internal and external purposes and in-line with international benchmarks.
|Disclosure||Disclosure trends and communication strategy
Assistance in understanding stakeholders’/ investors’ expectations and disclosure trends, and development of communication strategies that provide targeted and relevant assurance that the TCFD recommendations have been meaningfully applied while not revealing anything that would jeopardize any acquired competitive advantage.
|Disclosure gap analysis
Assessment of current corporate reporting against the requirements of the TCFD recommendations and development of a roadmap to full compliance.
|Disclosure content development
Assistance in developing tailored content to assist you In reporting both internally and externally, in line with the TCFD recommended disclosures.
If you would like to enquire about how Point Advisory could assist you in identifying and managing your organisation’s climate-related risks and opportunities, please contact us or call 03 9998 0457.
- Climate risk assessment and TCFD gap analysis for Incitec Pivot (IPL)
- Climate-related physical risk assessment
- Climate risk assessment and adaptation plan for Westernport Water