Climate risk, adaptation and TCFD advisory

The changing climate presents complex management challenges for business. There are both physical impacts to be assessed and risks arising from climate policy shifts and a decarbonising economy. Increasingly too, there are regulatory requirements from organisations such as ASIC and APRA for businesses to disclose climate risk as part of their reporting.

Energetics assists organisations to assess climate risk using the Taskforce on Climate-related Financial Disclosure (TCFD) framework to understand their exposure and incorporate climate change into their risk management frameworks and overall business strategy.

Using the TCFD framework, we provide assessments for:

Physical risks: Energetics’ innovative methodology engages with climate science to understand the effects on assets, productivity and profitability. Our approach can be seen in CBA’s 2019 Annual Report where we modelled climate impacts for 65% of the bank’s agribusiness portfolio though to 2060, across Australia and down to a 5km grid.

Transition risks: When assessing transition risks, we draw on scenario analysis to identify and document risks, with a range of time-bound modelling (dependent upon specific requirements). This analysis enables the consideration of the impacts and potential for:

  • fragmented or coordinated climate policy (including state and national coordination) and the impact on growth, productivity, and costs to an organisation
  • exposure to legal risk as a result of failure to mitigate, adapt, and disclose climate-related risks
  • exposure to technological risk across operations and supply chain.

Adaptation pathways: future-proofing your business

By combining climate science with business insights, Energetics uses robust facts, data and metrics to project climate-driven changes in the value of different assets and their productive capacity, and to identify adaptation measures. We allow for future technologies not yet developed and generate adaptation uptake curves based on productivity improvements, as well as costs and time to implement.

Energetics also highlights where there are opportunities for new products and services as existing markets change and new markets are created as the world adapts to changing climatic conditions.  

Contact us

Energetics can help you identify climate risks, and develop a strategy to mitigate those risks and pursue opportunities available in a future impacted by climate change. Request a phone call from one of our experts.

Our experts