Integrating climate change risk into due diligence reporting

Climate change presents both risks and opportunities to businesses. Investors and stakeholders are requiring greater transparency and action on climate change, particularly as more stringent voluntary and regulatory standards are introduced. Increased awareness of climate change and how companies are managing the associated risks are becoming more relevant in investment decision making. Integration of climate change risks and opportunities in the context of mergers and acquisitions; Public Private Partnership arrangements and in property and asset transactions is becoming increasingly important. Understanding climate change risk and the cost of adaptation can provide many challenges. However, the inclusion of climate change adaptation in development applications, Australian standards and sustainability rating tools is providing a framework for making this thinking business as usual. At Edge Environment, we strive to take an integrated approach to environmental and sustainability management. Our roots in Life Cycle Assessment mean that we often take a broader, long term and holistic view when developing sustainability solutions for our clients. We have applied this thinking with our clients in due diligence and climate change adaptation by integrating a high level climate change risk assessment with asset transaction due diligence reports. The provides the certainty to investors that our clients are managing climate change risks and provides a framework for our clients to build resilience around assets that may be at risk.

Written by Ken Lunty

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