Leading a sustainable future
Climate change is a pressing reality that presents significant opportunities for businesses to innovate, adapt, and lead in a sustainable future. However, turning climate risk into a value creation requires strong leadership to drive transformational change.
One of the most powerful actions a company can take today is to shift its mindset on climate risk from one of compliance to one of value generation that is fully integrated across all aspects of business decision-making.
Addressing climate risks that are relevant to your business presents a unique opportunity to innovate, adapt, and thrive in a changing world. Armed with the right knowledge and technology, companies can build organisational resilience and reputation and drive long-term shareholder value in a world that needs to shift to rapid decarbonisation.
This report will help decision-makers:
Identifying which parts of direct operations and the value chain are most vulnerable to climate risks will enable companies to be active rather than reactive. This can ultimately lead to better financial performance and protect the organisation’s long-term resilience.
Building climate change transparency and accountability will cultivate stakeholder trust within the organisation, with suppliers and customers externally through collaboration to introduce climate considerations into related contracts or products, as well as with the community through knowledge-sharing engagement and collaboration.
Investors are increasingly prioritising climate-conscious companies. Climate-related disclosures inform investors not only about risk and financial impact but also how a company is integrating climate into all aspects of their business. This level of information also makes it more likely to qualify for sustainable financing which often comes with lower interest rates than traditional financing options.
By integrating climate risk and opportunities into existing ERM frameworks and business strategies, businesses can identify new markets and growth sectors with increasing demand for sustainable products and services and drive innovation within their products and services. This in turn can help to drive a competitive advantage in the market.
Using climate risk as a driver businesses can refine existing IT systems to improve the comprehensiveness, rigour and traceability of data for reporting, real-time monitoring, and advanced analytics. Businesses can also access specialist tools and external data sets to support the process and decision-making and enhance the effectiveness of climate risk management in an enterprise.
A strong governance framework is key to unlocking these opportunities. If a business holistically shifts the mindset from one of compliance to one of value creation, then addressing climate risk becomes so much more than a compliance tick box exercise and creates a unique opportunity for businesses to innovate, adapt, and thrive in a changing world.
What are the million-dollar climate questions the Board and C-Suite should be able to answer?
For the systemic shift to a decarbonised future, collaboration and technology will be vital, and no organisation can achieve this alone. The TCS GoZero Hub is here to provide additional support to help companies at all stages of their journey.
What impact will a changing climate have on the financial viability of your business, and what are you doing to reduce the risks, take advantage of the opportunities, and drive authentic and credible communications for all stakeholders?
By sharing knowledge, generating ideas, and collaborating on low-emission solutions, businesses can create mutually beneficial outcomes.
Get the full report, including what the next steps should be for your business, here
The TCS GoZero Hub aims to bring together research, innovation, education, and consultancy expertise to support organisations in their journey towards a net zero emissions future.
We also acknowledge the engagement of Stockland Corporation Limited, Downer EDI Limited, and an Australian electricity generation and retailing company in providing their content and expertise to develop this report.