EcoAct is committed to making a difference by assisting businesses in addressing climate and environmental challenges while boosting commercial performance.
climate and sustainability projects since 2015
climate and biodiversity experts around the globe
years of climate and sustainability consulting
All companies are at risk from climate change, whether emerging carbon legislation, changing weather patterns or rising carbon prices.
Establishing which areas of your business are most at risk from climate change can inform your strategy and enhance its resilience. It will also help you to comply to increasing stakeholder and investor demands to account for and be transparent on climate risk and opportunities.
Our approach includes:
We will help you evaluate which areas of your business are most susceptible to climate risk by collaborating with you and your key stakeholders. We draw on latest climate science and existing evidence to identify key climate drivers and how those might affect the sector you work in.
Our climate experts can support in assessing risks and opportunities using a qualitative and/or quantitative approach tailored to your business needs. Our approach aligns with existing reporting frameworks such as TCFD and takes into account the need consider and assess potential strategic and financial implications of climate-related issues.
Following on from this analysis, our expertise in prioritising your risks and opportunities will allow you to set long and short-term targets and action plans. We will support you in estimating the benefits arising from preparing for the transition to a low carbon economy for your business and an uncertain future climate. Be it by differentiating your product, reducing costs, or streamlining processes.
Understanding what are the most material risks and opportunities and their implications for your organisation, we can then advise on a strategy to minimise the risks of climate change, and ensure your organisation is prepared and adapted to future climate. This also includes advise on how to make the most of potential opportunities, and estimating the financial, operational as well as reputational costs and benefits to your business.
The process of understanding and addressing climate risks and opportunities needs to be revised regularly and become part of your business as usual processes. We can work with you and your stakeholders in the integration and implementation of these processes as well as help to define metrics and targets to monitor and evaluate progress.
EcoAct helped the Group to significantly move forward in understanding and anticipating climate-related risk and opportunity on its activities. The EcoAct team supported Getlink to evidence its resilience towards the main risks with a robust analysis specific to its territory.Read case study
Business climate risk, often referred to as climate risk or climate-related risk, is the potential harm or adverse impacts that climate change and extreme weather events can have on a business, its operations, financial performance, and long-term sustainability. It encompasses a wide range of risks and challenges associated with the changing climate patterns and the transition to a more environmentally sustainable and climate-resilient economy. Key types of of business climate risk include: Physical Risks, Transition Risks, Regulatory Risks, Market Risks, Reputation Risks, Supply Chain Risks, Financial Risks, Operational Risks, Legal Risks and Insurance Risk.
Businesses can benefit in various ways from reducing their impact on climate change and the environment. A key way organisations can profit from sustainable practices is through cost savings and lower energy bills through energy-efficient practices, reduced resource consumption and reduced waste disposal expenses. There are also many ways corporates can create competitive advantage through climate action. For example, the reputation enhancement of sustainability efforts has been seen to attract more environmentally conscious customers and investors as well as attract and retain talent, as employees often prefer environmentally responsible employers.
To start assessing climate risks to your business you need to first understand your business and its vulnerabilities and how these could be impacted by changes caused by climate change. Then you need to comprehend from climate data and regulations, existing and upcoming how your business will be affected and identify the physical, transition, and liability risks. Following that, you should engage stakeholders for diverse perspectives and use risk assessment tools or environmental risk assessment templates to quantify potential impacts and prioritise risks. Set clear risk management objectives and then you’ll be ready to implement climate change mitigation and adaptation strategies. Businessess should ensure good processess are in place to monitor and report on progress. It is always a good idea for organisations to integrate climate risk into their business strategies.
Analysing climate change risks is vital for businesses as it ensures financial stability, regulatory compliance, stakeholder trust, supply chain resilience, market competitiveness, access to capital, innovation, and long-term viability. It also supports insurance and risk management, employee satisfaction, and alignment with ESG expectations, enhancing overall business sustainability and adaptability in a changing environmental landscape.
Regulatory Compliance: Meeting environmental regulations can prevent fines and legal issues, ensuring compliance with evolving environmental laws.
Risk Mitigation: Climate-resilient strategies can protect against disruptions, such as extreme weather events or resource shortages.
Innovation Opportunities: Sustainable practices often drive innovation, leading to the development of new products and services.
Market Advantage: Eco-friendly businesses can tap into the growing market for sustainable products and services.
Long-Term Viability: Reducing environmental impact enhances long-term business resilience in a changing world.
Access to Green Financing: Some financial institutions offer preferential terms to companies committed to sustainability.
Stakeholder Trust: Demonstrating environmental responsibility fosters trust with customers, partners, and communities.
Reduced Resource Dependency: Diversifying energy sources and reducing resource usage can protect against price volatility and supply chain risks.
Adaptation to Market Trends: Meeting consumer demand for sustainable products and services can lead to business growth.
Overall, businesses that reduce their environmental impact are better positioned for sustainable growth, financial stability, and success in an increasingly environmentally conscious world.
Traditionally, climate disclosure focused on the question “What is the impact of your organisation on climate change?”. The TCFD flips this question on its head, to ask “What will be the impact of climate change on your organisation?”.
Now, more than ever before, we must consider this question and understand the implications of climate change to make sure we are taking adequate action: investors are demanding it, governments are making it mandatory and climate science is telling us it is increasingly urgent.
In our TCFD eBook we demonstrate how to improve business disclosures, strengthen climate and sustainability strategy, and future-proof business through one exercise: TCFD alignment.
Download the guide to learn:
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