14 February 2023

7 workflows you can enhance with climate intelligence


By Cervest

7 workflows you can enhance with climate intelligence

Every organization wants to work smarter, but accounting for climate change impacts presents a complex problem for businesses. The world faced significant natural disasters throughout 2021 that caused more than USD343 billion in economic damage. Building resilience to these impacts means organizations must put climate at the core of every decision. However, raw climate data is complex, fragmented and by no means decision-useful.

Mandatory TCFD-aligned climate-related financial disclosure, which requires companies to report on how climate change impacts their organization, is already affecting companies in certain countries across the world, and a number of additional countries, including the US, are likely to follow soon. Organizations need to discover their climate risk, meet reporting requirements continuously, and act swiftly on these risks.

Cervest’s climate intelligence (CI) product, EarthScan™, helps organizations to enhance ESG reporting using decision-useful, science-backed insights. This helps companies to provide comprehensive, globally standardized reports that consider multiple potential climate futures, as well as impact in the short-, medium- and long-term. In addition to incorporating climate risk in annual reports, there are other instances that organizations will need to have access to asset-level, decision-useful, climate intelligence.

Organizations can screen their individual assets, entire portfolio, and supply chain for climate risk, to pinpoint the greatest risks and opportunities, prioritize risk adaptation planning and engage stakeholders. The assets that decision-makers own, manage, or depend on, can be screened and rated depending on the level of climate risk – helping leaders to prioritize and implement urgent adaptation measures.

Having on-demand access to this climate intelligence means climate risk insights can be embedded into multiple workflows across regions, departments and even subsidiary companies, such as:

1. Climate disclosures

ESG targets are constantly changing, and risk management, compliance and sustainability teams lack the time and resources to keep track of the changes while meeting the demand for increasingly granular climate insights. Climate intelligence can be used to develop scalable reporting workflows across multiple regions and enhance reports aligned to the TCFD and EU Taxonomy reporting.

2. Internal ESG and sustainability reporting

Sustainability teams can download science-backed insights at the portfolio and asset level to showcase to investors, business leaders, clients and other stakeholders climate risk distribution. A single, shared source of truth helps align multiple stakeholders and drive collective climate action.

3. Pre-transaction due diligence

One of the biggest challenges for asset managers and investors is the need to screen pre-sale properties or existing portfolios for climate risk without losing the deal while waiting for an outsourced risk report. On-demand climate intelligence helps solve this gap and move towards a climate-secure investment decision, with insights across the entirety of the asset’s lifecycle.

4. Supply chain planning

Global supply chains are particularly prone to the impact of climate change. Diversifying supply chains to mitigate the impact of climate hazards such as wildfire and flooding on operational disruption is vital to protect future revenue. Climate intelligence enables the direct comparison of suppliers based on the risk distribution across assets, such as warehouses, factories and data centers.

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5. Climate risk management

With climate disruption exceeding many organization’s coping capabilities, traditional risk management no longer cuts it. The ability to quickly screen and report on assets and portfolios at scale saves time communicating the risk to decision-makers and developing risk adaptation plans to protect cash flow and reduce the likelihood of operational disruption or revenue loss.

6. Investor and shareholder communications

Credible, on-demand climate intelligence insights are vital for building trust amongst external investors and shareholders, in addition to speaking both in terms of risk as well as opportunities.

7. Emergency planning

Technology can provide invaluable support to emergency planning professionals as they plan for future climate hazards that may impact their operations, particularly when assessing asset-level risk, using science-backed insights to examine risk metrics in more depth, pinpoint potential points of failure and support report creation for internal buy-in.

Using EarthScan gives organizations the ability to utilize asset-level intelligence alongside a full picture of climate risk to strengthen disclosures and internal reporting alongside multiple other use cases.

Using EarthScan to drive climate action

The GCA’s research finds that adaptation investment offers cost–benefit ratios between 2:1 and 10:1, or higher. Businesses can gather climate risk data in a variety of ways, both human and technology generated, but few approaches are standardized or deliver decision-useful information. Cervest’s climate intelligence product, EarthScan, enables organizations to screen thousands of assets for climate-related risk, including Climate Value at Risk (CVaR), report on the greatest risks and opportunities on-demand across multiple IPCC scenarios, time horizons and risk categories.

For the first time, customers can analyze, rate, and report assets on their physical climate risk, share directly with stakeholders, clients, investors, and other shareholders, and meet fast-changing reporting regulations with report-ready, science-backed insights. There’s no time to waste in the climate crisis – act now.

Download our ebook, Powering action with climate intelligence, to discover how customers are using EarthScan to embed climate risk into their workflows

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