Last week, Climate Matters led discussions at the IRDG webinar on “Risk & Innovation – Applying Technology to Deliver on Your Sustainability Strategy and Reporting.” The session explored how businesses can integrate climate risk assessments, regulatory compliance, and technological solutions to strengthen their sustainability strategies.
Key Topics Covered
Understanding Climate Risk and Its Business Impact
The webinar highlighted the growing need for organisations to incorporate climate risk assessments into their decision-making. Climate risk was broken down into two categories:
- Physical risks – Extreme weather events, flooding, wildfires, and long-term environmental changes.
- Transition risks – Policy shifts, market expectations, and evolving sustainability regulations like the Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS-E1).
It was emphasised that ISO 14090 and ISO 14091 provide structured methodologies for assessing and managing these risks.
Technology’s Role in Climate Risk Management
An important theme was how technology-driven solutions can transform climate risk management and sustainability reporting. Key challenges businesses face include:
- The evolving regulatory landscape and compliance requirements.
- Lack of skilled verifiers and assurance professionals for GHG reporting.
- The complexity of Scope 3 emissions and supply chain data management.
The discussion explored how automation, AI, and data-driven tools can streamline sustainability reporting, enhance risk assessments, and support businesses in achieving net-zero goals.
Practical Applications: Stress Testing and Adaptation Strategies
The session included case studies on stress testing portfolios under climate scenarios like RCP 8.5, which simulates high-emissions futures to evaluate risks such as:
- Coastal and riverine flooding.
- Extreme heat and wind impacts.
- Soil subsidence and infrastructure vulnerability.
It was emphasised that climate adaptation strategies must be embedded into business frameworks, using scenario analysis, financial modelling, and structured risk assessments to drive decision-making.
Looking Ahead: A Call to Action
At the webinar, Climate Matters reinforced the importance of proactive climate risk management. With CSRD and ESRS-E1 compliance deadlines approaching, businesses must take action by:
✔ Conducting comprehensive risk assessments.
✔ Integrating climate resilience into enterprise risk management.
✔ Leveraging technology and innovation to future-proof sustainability strategies.
💡 At Climate Matters, we help organisations navigate climate risk, compliance, and adaptation planning. Get in touch to learn how we can support your sustainability journey.
