Climate change risk and opportunities

As our understanding of climate change increases, so too does the demand from investors and other corporate stakeholders for disclosure on companies’ exposure to climate change risks and opportunities, and how they are responding.

Whilst uncertainty remains about the magnitude of climate change impacts and how they will affect different regions, the reports of the International Panel on Climate Change (IPCC) provide a widely accepted basis for examining likely impacts under different climate change scenarios. In Australia these have been elaborated upon particularly by CSIRO modelling.

Climate change impacts identified by the IPCC include changed weather patterns, sea level rises, increased temperatures sufficient to cause heat stress, reduced water availability and soil moisture,  and ocean acidification. There are also important related social and economic impacts to be considered.

Risks to companies fall into three categories:

• Physical risks
• Regulation risks and
• Reputation risks

The Middle Way assists organisations to identify and prioritise climate change risks and opportunities on a regional basis, now and into the future.

Our profiling of physical risks draws on the authoritative projections of the impacts of climate change from the IPCC, CSIRO and their collaborating scientific institutions.

Our methods are based on the AS/NZ 4360:  Risk Management and the Australian Government’s Climate Change Impacts and Risk Management: A Guide for Business and Government (2006).

We draw on our experience working with companies on corporate social responsibility to define reputation risks and to undertake triple bottom line assessments of risks.  We also draw on our knowledge of current and emerging climate change regulations to assess regulatory risk.

The Middle Way  collaborates with RKEJ Pty Ltd in Brisbane when specialised risk analyses are required.  Its proprietor, Robert Jorgensen  B.E (Chem) Hons, RPEQ, C P Eng, C Eng, FIChemE, MIEAust, is a chemical engineer with extensive experience in hazards analysis and prevention, and has advised firms across a wide range of industry sectors and Government agencies.  He also undertakes operational and environmental reviews, and advises on operational issues in processing plant operations.