On Monday, the Federal Government released the first National Climate Risk Assessment and it has forecast a potentially scary future both at a personal level and for our organisations. If global warming hits three degrees it is estimated we will see:
- 14 additional severe heatwave days
- 15% – 89% more time spent in drought
- 157 additional days of coastal flooding
Implications could be wide reaching for organisations.
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For instance, if you are a construction company or another organisation requiring staff to work outside, how would that impact you if there are two to three additional weeks where you are unable to operate because of extreme heat? How would your operations need to adapt to make so you can still succeed?
Coastal flooding could result in 34% of coastal communities being impacted with a higher risk of flooding. What might this mean if you or your customers are located in these areas? Will you be able to access your facilities, will your customers be able to access you? If they are dealing with the loss of homes etc., will there still be demand for your product?
If you are in agriculture or are dependent on water for your production process, how will the additional periods of drought impact you? Will you still be able to produce in the same manner? If your customers are farmers who are now experiencing drought, how will that impact their demand for your products? Will they still be able to afford to purchase them?
These examples are only a fraction of what the National Climate Risk Assessment has explored and it is evident some of the issues addressed could pose existential issues for some organisations.Â
This is where sustainability reporting can be impactful. The whole purpose of sustainability reporting is to force you to start asking yourselves these questions.
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A major focus of the sustainability reporting requirements is looking at these climate related risks and opportunities, what impact they might have on your organisation and how you are planning to address them. You need to start identifying these matters and consider putting strategies in place to ensure that you are setting your business up not just to survive the impacts of climate change, but to thrive. Â
Sustainability Reporting is forcing us to bring to the front these issues that we may have been vaguely aware of but hadn’t been prioritising to date.
This National Climate Risk Assessment has potentially sounded the warning gong for many organisations There is no time to wait, and it is essential that we start looking at these matters now. If you want assistance with how to start exploring the impacts of these risks on your organisation, or start preparing for sustainability reporting, please reach out to your local Moore Australia contact for further information.Â
