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Climate Change and Sustainability Services

 

What climate-related risks is your organization prepared for?

While the topic of climate-relate risks is becoming more and more prominent, many organizations do not have a clear understanding of the range and magnitude of potential financial impacts resulting from climate change in the short and long term. This is because climate risks are inherently more complex and long term in nature than most traditional business risks contributing to a lack of clear understanding and measurement capabilities to assess the potential impacts on organization’s operations and performances.

To solicit decision-useful, forward-looking information on financial impacts of climate-related risks and opportunities, organizations should be conducting climate-related scenario analysis.

EY Climate Change and Sustainability Service (CCaSS) teams can support organizations as they develop and implement their climate risk strategies, including their scenario analysis.

Click here for more information. ( CCaSS_campaign_support_Climate scenario analysis PDF)

 

Are you providing investors with the information they want to make informed decisions?

While the amount of nonfinancial information is growing and is increasingly being used in decision-making, evidence shows that at the same time there is a dissatisfaction from investors with the quality of information available from companies.2 While companies are gradually starting to improve the quality of nonfinancial information, it is not improving at a fast enough pace to keep up with higher expectations from investors. As investors come to see nonfinancial information as increasingly significant they reveal higher expectations for it to be timely, comparable and verifiable. However, investors note that the available nonfinancial information is often of poor quality, inconsistent or not verified, nor available for comparison with those of other companies.

EY Climate Change and Sustainability Services (CCaSS) teams can help you to improve the credibility of your nonfinancial reporting by:

• Helping identify stakeholder information needs and performing a gap analysis with your current reporting
• Supporting the drafting of a nonfinancial information reporting policy tailored to your business model and meeting applicable requirements
• Helping draft relevant and connected financial and nonfinancial reporting
• Helping develop reporting processes that are supported by sound governance and control

Click here for more information. (Non-Financial Information slip sheet scenario analysis PDF)

 

How well prepared is your business for a 2oC world?

Governments, businesses and investors around the world are increasingly focusing on the financial impacts of climate change. Businesses may face new regulatory requirements and rising stakeholder concerns, as well as risks related to price and availability of commodities. There may be opportunities for new revenue generation from low-carbon products, renewable energy and additional services. There could also be opportunities for reduction of resource dependency.

Embedding a sustainable approach into core business activities is a complex transformation that may create long-term shareholder value and unlock a range of new, emerging sources of green financial capital such as green bonds.

Whether an investor or an asset manager, businesses need to develop and execute strategies that consider a 2oC world, as the risks of diversifying portfolios into emerging technologies is now outweighed by the risks of not responding to these signals and continuing to invest in companies operating in business-as-usual mode.

EY’s global, multidisciplinary teams can provide a balance of skills to offer tailored services supported by global methodologies to address specific business issues. In particular:

• We can assist policymakers (governments and international organizations) in defining and implementing energy and climate policies
• We can help businesses in establishing GHG inventories across the value chain and for investors and debt providers over their portfolios
• We can help model the physical and transition impacts of different climate scenarios, including 2oC scenarios, on businesses
• We can assist investors and corporates in defining energy and climate strategies and in evaluating the rationale and profitability of investment decisions
• We can support issuers and investors in issuing green bonds and other alternative financing mechanisms to unlock climate finance sources

Click here for more information. (Climate finance slip sheet_scenario analysis PDF)

 

How can your EHS program break through to a new level of performance?

Environment, health and safety (EHS) performance has historically been managed with a focus on compliance.
Although this has contributed to significant EHS improvements, it hasn’t allowed organizations to exploit its full potential. EHS has primarily been managed via employee’s extrinsic motivators, where employees are generally motivated to follow a process or procedure because they have to. This has led to a performance plateau.

In order to start a shift beyond the current EHS plateau, organizations should assess where they are at and where they need to be. Business leaders should not only understand the current state of their EHS function, but more importantly they require a method that is relevant to today’s business context and provides them with a more progressive path forward. This method should take a holistic approach placing leadership at the center as the most effective means to tap into employees’ intrinsic motivators.

By increasing leadership transparency and access to information, organizations build shared trust and knowledge flow, resulting in an aligned workforce driven by intrinsic motivators. When leaders are highly trusted, they receive better and more accurate information to make sound decisions and advance EHS and overall business performance. In order to help organizations solve these challenges, EY has developed an EHS maturity model informed by seven levers that can be drawn on to build shared trust and knowledge flow. By using the EY EHS maturity model, business leaders can obtain a holistic perspective on their organization’s current EHS maturity, but more importantly understand the way forward beyond their current EHS performance plateau.

Click here for more information. (EHS performance slip sheet PDF)