Why we need to ask better climate risk questions
Most businesses already know climate risk is coming. The problem is that this knowledge sits in sustainability reports instead of shaping everyday decisions.
Writing in Accounting and Business (AB) magazine, our Managing Partner Kathleen Enright explains how climate risk falls between teams. Sustainability understands the hazard, procurement manages suppliers, operations plans for disruption and finance sees the cost, but too often they don’t work on it together.
She points to a single flood at an aluminium supplier that forced a major car manufacturer to cut its sales forecast, showing how quickly one disruption can spread through a supply chain.
Her answer is to ask better, more practical questions. Where does the business depend on water, energy and transport, which assumptions would fail first, and what would that mean for revenue and margins? Getting those answers early is what turns a known risk into a funded plan.