Climate change risk and reporting
Climate change poses a significant risk to the planet, its people and their businesses: a situation that requires immediate action. As the current situation is the result of human activity that causes greenhouse gas emissions to be trapped as heat in the atmosphere, it is our responsibility to adapt to limit its impacts.
The risks presented by a changing climate are not only physical but are also economic, as we pivot our practices to overcome the significant threats to food and water resources, human health and security, as well as local and global ecosystems. Businesses, therefore, need to assess their prospective risks and plan to enhance company resilience. This can be a challenge for many businesses as they consider the best way forward.
RSK helps its clients and partners plan for the future climate through the delivery of a variety of climate change risk-related reporting services. These services assess and address both the physical and the transition risks associated with climate change. They identify and examine the likelihood and magnitude of potential impacts on company assets and investments brought about by the changing atmospheric conditions and their societal repercussions.
Connecting consultancy and contracting
RSK and its subsidiary companies are continually refining consultancy and contracting solutions when it comes to providing climate change risk assessment (CCRA) and management services. Our team consists of a network of scientists, field experts and specialist asset managers who make up environmentally focused companies such as RSK Carbon, ADAS, WRc, Nature Positive and RSK Geosciences. Working together, our teams examine climate hazards, vulnerabilities and the exposure of assets and investments to these in order to develop appropriate, cost-effective adaptation measures to manage risks. We also support the implementation of these solutions through the delivery of strategy, design and on-the-ground operations.
Knowing the challenges and implementing the solutions
Our clients are active in a diverse range of sectors, including food and drink, finance, energy, telecommunications, transport and agriculture. They all have one thing in common: they are trying to understand the risks to their company and its activities. To support this, we deliver climate change modelling and scenario analysis services, together with extensive stakeholder engagement, to develop a detailed understanding of the breadth and depth of identified risks and the options available to manage these. Disclosure of risks and environmental, social and governance (ESG) reporting are also areas of focus for our clients.
A robust and bespoke offering
RSK’s specialist climate change teams can undertake several supporting services in addition to our primary CCRA offering to create bespoke solution-focused propositions for our clients. These include horizon scanning, adaptive capacity assessment, scenario analysis, climate change strategy, adaptation reporting power (ARP) and Task Force on Climate-related Financial Disclosures (TCFD) reporting.
Our expertise supports partners and clients to ensure their organisations remain responsive and resilient to future change.
Our increasing global presence means we can offer these services to clients all over the world, taking advantage of our global network of scientists, field experts and asset managers. The size and scope of our business enables us to offer climate change risk services in tandem with other climate-focused services within the company, including greenhouse gas accounting (including science-based target development), renewable power and heating, land management and sustainability reporting: providing an end-to-end bespoke solution to any climate-related problem.
Task Force on Climate-related Financial Disclosures
Around the world, businesses and regulators are urgently engaging with the Task Force on Climate-related Financial Disclosures (TCFD). The TCFD provides a framework of recommendations that guides how organisations identify, assess and manage the risks and opportunities stemming from climate change and the transition to net zero. It addresses four thematic areas of business operations: governance; strategy; risk assessment; and metrics and targets. These themes are reported on in mandatory and non-mandatory disclosures. RSK can support organisations both in the delivery of component parts of their disclosure or as a whole, depending on the needs of the client.
Scenario analysis is a risk management tool that enables users to understand future risk factors and combinations of risk. By analysing multiple climate change scenarios or shared socio-economic pathways, companies can develop a clear and in-depth understanding of the risks to their assets and activities, which enables them to make informed decisions with respect to these and the potential solutions that they may implement. Scenario analysis can also aid with the development of corporate and/or climate-related strategies to guide company activities successfully into the future.
Adaptive capacity assessment
Adaptive capacity is the ability of a system to adjust to risk and to take advantage of opportunities. In accordance with ISO 14091, RSK can examine organisational, technical, financial and ecosystem capacity (as applicable) to determine the extent to which the current level of adaptive capacity matches the required level. This can be done for a single scenario or time horizon or across multiple scenarios, to suit the needs of our clients. The outcomes of this type of assessment support our clients and partners to identify potential areas for adaptive capacity improvement, thus enabling them to implement the necessary solutions.
Identifying and examining future events and emerging trends supports organisations to prepare for potential opportunities and threats. To do this, RSK systematically reviews information regarding law and policy, market and technology changes in order to build intelligence and create insight through the identification of patterns and interdependencies. From this starting point, we work with organisations to plan and deliver targeted action.
Adaptation reporting power
RSK can support reporting authorities that have been directed by the secretary of state to prepare reports concerning the assessment of climate-related impacts upon organisations and can also help these organisations with proposals and policies for adapting to climate change. We can provide climate change modelling and the identification of risks and appropriate adaptation measures, including policies and proposals.