Accelerating Low-Carbon Transitions
Collins Climate Consulting
Accelerating Low-Carbon Transitions
Collins Climate Consulting
ESG and Climate Change
Climate is the Universal Element of ESG
While companies worldwide grapple with what Environmental, Social and Governance (ESG) means for their business, one thing is clear - climate change risk management is a given for every ESG strategy.
Businesses must understand what their stakeholders - including investors, customers, suppliers, employees - expect in terms of the E in ESG. Investors want to understand the climate risks they are buying into. Employees want to understand the values they are aligning with. Clients want to know the strategic opportunities they are gaining from partners prepared for the future that is here.
This is more than carbon reporting. Understanding how climate impacts your business strategy is about identifying the risks and opportunities that climate change offers uniquely to you - and making the most of it.
Climate Is a Strategic Business Matter
Climate risks are expensive
- Global companies report almost $1 trillion at risk from climate impacts, with many likely to hit within the next 5 years
- Changes in consumer demand, technology and products in a low-carbon economy can be competitive risks (or opportunities)
Climate change presents opportunities
- Demand for technologies that support climate resilience and adaptation could create a $1 trillion opportunity for private capital by 2030.
- Product and technology innovation, expanding markets and new efficiencies are profit opportunities.
Stakeholders expect accountability
- 86% of Millennials are interested in sustainable investing - that means almost all Millennials, a group that is set to inherit $30 Trillion in assets
- Investors expect disclosure of climate-related risks and opportunities
- Customers are demanding sustainable business practices
Three-tiered approach:
Strategy
Investors Readiness
Innovation
Stakeholder input on resilience and low carbon operations
Innovation
Investors Readiness
Innovation
Discover new markets and technologies for competitive advantage
Investors Readiness
Investors Readiness
Investors Readiness
Identify climate risks and opportunities to drive valuation