In 2021, relentless headlines about extreme weather events brought home the reality that climate change is already here. From the extreme cold of Winter Storm Uri in the US and the cold wave in France, to floods in Europe and China, and record-setting heat waves in Western North America, climate volatility impacted lives and livelihoods in every corner of the globe.
For businesses, this spells bad news for bottom lines: a recent CDP report estimates that climate change will cost companies up to $1.3 trillion by 2026. For all businesses, managing climate risk is key to protecting revenues and reputations.
Long-term business resilience will depend on each organization鈥檚 ability to see and understand how climate change will impact its assets and operations across different climate scenarios and timeframes 鈥 and then adapt to them effectively. This can be easier said than done, so for businesses that don't know where to start, Climate Intelligence (CI) company is ready to offer a helping hand.
Cervest鈥檚 brand new ebook advises businesses on how to comply with the 海角视频's new climate-related financial regulations, and effectively report on how climate-based risks will impact their fixed assets. This comprehensive guide is available now to
The guide is timely, as new regulations about climate risk reporting come into force in the 海角视频. As of Wednesday, April 6, 2022, some of the 海角视频鈥檚 largest companies and financial institutions are required to publicly disclose the financial impact that climate change will have upon their business in future.
Around 1,300 businesses have been impacted by the new regulations, with this number expected to grow to include all businesses by 2025.
Dr Helen Beddow, climate content and knowledge lead at Cervest, says: "There's a danger of businesses not being able to meet the new 海角视频 climate risk disclosure requirements if they don't have the right tools and information to submit an accurate report. This also risks eroding trust among investors, stakeholders and employees.
"Our new ebook is designed to make the new reporting requirements clear and easy to understand. Our flagship product, EarthScan鈩, also equips organizations with report-ready Climate Intelligence insights into their assets and portfolios - which makes disclosure much more accurate, straightforward and credible."
Getting to grips with climate-related financial disclosure
Cervest's new ebook lays out exactly what companies affected by the new 海角视频 regulations should report on, and how to do it. Climate-related financial disclosure is a company鈥檚 public assessment of how climate change impacts its short, medium and long-term financial health.
Each company decides which time horizons make the most sense for its business to report on, depending on the nature of its business and their susceptibility to climate-related risk. Cervest鈥檚 ebook offers guidance on setting appropriate timescales for your company, across a range of possible future climate scenarios.
Helen Beddow says, "One of the variables when it comes to climate change is that we don't know how drastically the climate will change in future, because we're yet to see the full impact of the climate volatility that鈥檚 already locked in from previous carbon emissions.
"Our ebook helps businesses consider various climate scenarios, as required by 海角视频 law and recommended by the TCFD (Task Force on Climate-related Financial Disclosure) guidelines. This means companies can see how the risks facing their assets are likely to change depending on the world鈥檚 progress towards climate change goals, such as whether we reach Net Zero emissions by 2040, or succeed in keeping warming to below 1.5潞C.鈥
Different businesses, different risks
Every business鈥檚 climate risk is different, depending on the nature of their operations, the location of their assets, the supply chains they rely on and the duration of their investments. A textile manufacturer in Italy may find its business increasingly vulnerable to material shortages resulting from drought, whereas a hotel on the 海角视频 coast may become more susceptible to flooding and rising sea levels.
Understanding exactly what and where your specific vulnerabilities are is the first step towards being able to both tackle them and report on them.
But doing so has been challenging, says Helen Beddow: 鈥淭he primary reason companies struggle to report on climate-related risks facing individual assets is because climate data is too complex to collate and understand in-house.
鈥淭hird-party climate analyses are also usually prohibitively expensive and take a huge amount of time to prepare. They also fail to provide the granular detail that would allow businesses to discover and disclose the climate-related risks faced by individual assets.鈥
According to , 46 per cent of companies have no visibility on extreme weather events. Whereas 46 per cent are challenged by the complexity of aggregating data, and 43 per cent lack real-time actionable intelligence.
These challenges highlight the benefits of Cervest's unique Climate Intelligence product, EarthScan. Powered by advanced machine learning, AI and climate science, it allows anyone to analyze climate-related risks at asset-level across multiple timescales, climate scenarios and types of hazard (such as drought, wildfire or flooding).
Climate Intelligence at your fingertips
Climate Intelligence, accessed through EarthScan, was called 鈥渁 strategic priority for organizations worldwide鈥 by global analysts IDC in its recent report. The report concludes that: 鈥淐ompanies and governments need climate intelligence and insight to not only manage climate-related risk to their most important assets but also to help them adapt to future risk and find new opportunities as a result.鈥
EarthScan is an indispensable Climate Intelligence solution for enterprises, helping them integrate climate risk into future plans and workflows, as well as enabling on-demand climate-related financial risk reporting. Downloadable insights include summaries to meet recommendations, on-demand analysis of climate risks to valuable assets, executive summaries and more 鈥 with the ability to not only look ahead by decades but also delve half a century into the past.
Cervest's new ebook advises how adopting solutions such as EarthScan creates significant business advantages beyond just reporting, and how getting disclosure report-ready now will reap rewards in increased investor confidence and business resilience.
Climate Intelligence pioneers
Cervest is pioneering, cloud-based Climate Intelligence (CI) on any physical asset, anywhere in the world, that gives enterprises, governments, and financial service providers the most comprehensive view possible of climate risk.
The company has previously released several other free, industry-specific ebooks, targeting the real-estate, manufacturing, and city planning sectors, as well as numerous in-depth Climate Intelligence reports, shareable infographics, and insights from world-leading climate experts.
Approximately 50 per cent of Cervest鈥檚 staff are climate scientists, and 40 per cent are data engineers. The team has published more than 200 peer-reviewed papers, and counts a Nobel Prize-winner among its ranks.
The company's mission is to empower everyone to adapt with climate change and build a more resilient future for our planet.
