Топ-100
Institute For Sustainable Innovation

Addressing climatic risk factors is an important step towards business resilience

Customer

The company carries out diversified activities for the extraction and processing of hydrocarbon raw materials, sells finished products; also works for export.

The company takes an active position in the field of climate:

Problem

Climate change

The company understands that it directly depends on climate change: natural characteristics affect production assets, infrastructure, and changes in regulatory and regulatory legislation in the climate sphere affect business processes. Cases of destruction of the company's facilities are becoming more frequent (especially in the permafrost zone), and the competitive component of climate regulation is increasing. All of these trends require a deeper understanding of how and to what extent climate change affects the efficiency and sustainability of a company.

The management turned to our organization for help in identifying climatic factors (natural phenomena and legislative processes in the external environment) that create the greatest risks in its production processes, in transport operations, logistics, supply and marketing, etc. factors and identify which processes of its activity are most sensitive to them.


Solution

Climate change is diverse. They have different intensity, direction of action, manifestation in a specific situation (geographic, economic, political, etc.) Therefore, it was important to reduce the level of uncertainty and adopt optimal analytical generalizations in order to obtain correct and relevant results.

We found that the climate has a significant impact on the sustainability of the company's production facilities, especially those located in high latitudes, and changes in regulatory and regulatory legislation in the climate field directly affect the Company's business processes.

Working with trends in climate parameters and prospects for climate regulation, we used officially recognized climate change scenarios (Intergovernmental Panel on Climate Change, International Energy Agency, etc.).

We identified all the factors of climatic risks that are significant for the company: physical and transient. Using a special algorithm developed by us, we analyzed the found factors and assessed their impact on the company's processes in terms of sustainability in the long term.

We also gave recommendations on how to reduce the impact of climatic factors in the development of design and working documentation.


Result

The company has gained a new understanding of climate risks, which allows:

at the design stage, take into account the tendencies of changes in physical climatic factors;

Understanding the significant climatic factors and their impact on efficiency and sustainability is the basis of the climatic activities of any company, territorial authorities, investors.


Effects of climate change


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