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Commencing Your ESG Journey – Identifying Climate Risks and Opportunities

Commencing Your ESG Journey – Identifying Climate Risks and Opportunities

Kristen Haines

The proposed upcoming Sustainability Reporting regime can be daunting, and it can be challenging to know where to start on your ESG journey. At Moore Australia we are here to help you simplify that journey and it all starts with identifying climate related risks and opportunities.

Focussing on your climate related risks and opportunities is a sensible place to start in the Australian market, given that our proposed sustainability reporting regime is expected to commence focussed solely on climate change. The proposed reporting will require you to report on various aspects of climate change in your business including:

  • Strategies to address risks and opportunities,

  • How climate is considered in your risk management processes,

  • What impact climate will have on your organisation including scenario analysis; and

  • Various metrics of sustainability performance including greenhouse gas (GHG) emissions.

Identifying your key climate related risks and opportunities will allow you to focus your attention on the appropriate areas where you are going to be able to make the most significant impacts both in terms of addressing climate change, and in progressing your sustainability reporting obligations.

To assist you in assessing your climate related risks and opportunities, we have provided you with a checklist of common risks and opportunities in the following key areas:

  • Supply chain

  • Customer demand

  • Regulation

  • Innovation and stakeholder concerns.

Using this checklist as a basis for a discussion in your organisation will assist to develop a better understanding of how your organisation is impacted by climate change as well as how your organisation contributes to and impacts climate change, both of which need to be focused on as part of sustainability reporting.


Involving the appropriate people in the conversation


When discussing climate related risks and opportunities, it is important to be involving the correct people within your organisation. Beyond the finance or risk management teams who are taking responsibility for sustainability reporting, it is important to also include operational staff who often have the more practical knowledge about what is happening in the day-to-day operations of the business and may have the additional insights into the risks and opportunities available to you. Consider discussing with relevant people in procurement, manufacturing, customer service and logistics for example.

Another key resource to consider is anyone in your organisation that is already an environmental champion. These are those individuals who are passionate about the environment and reducing the impact of climate change. Often these individuals will have already thought about what your organisation can do to battle climate change and therefore can be a great source of climate related opportunities.

It is important to make a start on your sustainability reporting efforts, and identifying your climate related risks and opportunities is the most appropriate place to start. If you would like further assistance in identifying climate related risks and opportunities, please reach out to your local Moore Australia contact to arrange for a facilitated workshop or to further discuss the Sustainability Reporting requirements.

Download a free copy of the 'Identifying climate-related risks and opportunities' checklist by click here.