Many organizations routinely disclose the impacts of their activities on the environment to answer questions about the company’s impact on the environment. For example, 6,500 companies routinely do so in CDP’s annual disclosure cycle.

The right question to ask, however, is “How are climate risks impacting your company?” This question is being asked with greater frequency as the direct physical impacts of climate change expose businesses to new and unpredictable strategic and operational risks. The indirect and transition impacts of climate change, such as changing regulatory requirements toward a low-carbon economy or evolving customer demands, are also creating new risks and opportunities.

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Foto: Mott MacDonald