Helping companies identify their climate-related risks and opportunities
While climate change will continue to have a profound impact on markets around the world, it is often not clear what the nature of the impact will be for individual companies as well as the products and services they offer. Within the scope of an innovation project regarding climate adaptation, we developed a tool that helps companies identify their climate-related risks and opportunities.
With our annual EBP Boost Camp, we aim to give our employees an opportunity to convert their innovative ideas into market-ready products in a unique setting which offers them direct access to potential clients. This year, an interdisciplinary team of our climate, economics, IT, and risk-management specialists focused on the task of enabling companies address the issue of climate adaptation. “We were convinced that showing companies the specific risks and opportunities they’re likely to face would give them a better grasp of the otherwise abstract notion of climate adaptation,” EBP climate specialist Tanja Stanelle explained before going on to cite examples such as disrupted supply chains, decreased productivity, property damage, and spikes in the price of raw materials.
“We turn the abstract notion of climate adaptation into something real and immediate.”
From the initial idea to the finished tool
“Our aim was to develop a tool that would enable companies to gain an initial overview of their risks, opportunities, and needs for action simply by filling out a streamlined questionnaire,” stated risk-management specialist Marion Caduff. To ensure that the new tool would be based on more than assumptions, the team invited various clients to gain a better understanding of their perspectives. “Representing various markets and company sizes, our partners were able to provide valuable input,” says Tanja Stanelle. “This facilitated a focused approach to developing the tool by the end of the one-week Boost Camp.” The result is a finished, customer-tested concept. “Now, all we have to do is implement it,” stated the team’s IT specialist Alex Graf enthusiastically. The tool is to make its online debut at the end of 2022.
The benefits of a climate risk checkup
After completing the questionnaire, companies receive a report listing their climate risks and opportunities. The report includes a detailed assessment of the degrees to which the company is affected by various climate risks, as well as additional information pertaining to potential losses and preemptive or mitigating measures. In short, the online checkup provides the companies with valuable risk-management information while also allowing them to identify and exploit opportunities at an early stage.
“By completing a streamlined questionnaire, companies are able to identify appropriate proactive responses to climate risks and opportunities.”
Follow up steps for companies after analyzing their climate risks
“Ideally, the companies will use the findings to draw conclusions, conduct more in-depth analyses of the relevant topics, prioritize the risks and opportunities, as well as to draft, implement and monitor specific measures,” explained the team’s economist Julia Brandes. “We’re happy to help them prepare for the challenges of climate change, such as by completing more detailed analyses of the impact the climate risks can be expected to have on specific markets, by organizing workshops aimed at identifying expedient measures, and also by devising appropriate monitoring concepts. Furthermore, we offer support when it comes to sustainability and climate reporting.”
Link to study of climate risks in Switzerland: Climate-related risks and opportunities (admin.ch)
NCCS: CH2018 web atlas (admin.ch)