In line with Taskforce on Climate-related Financial Disclosures (TCFD) recommendations, since April 2022 over 1,300 of the largest public and private companies in the UK have been required by law to quantify and disclose climate-related financial risks and opportunities.
Predicting which sites and suppliers in supply chains could be impacted – and what the financial implications could be – is extremely important for insurers and supply chain-dependent clients alike. However, it is not an easy task.
Using SCAIR®, companies can determine ‘value at risk’ for key sites and suppliers. This information can be leveraged to fulfil climate change financial reporting requirements as follows:
1) Taking the address and latitude / longitude of the most exposed manufacturing locations
2) Obtaining the most accurate data on natural catastrophe and climate change-related risks by tapping into NATHAN, one of the most trusted names in location-based risk intelligence.
NATHAN can use its natural catastrophe modelling experience to identify which sites are vulnerable to the standard climate change scenarios. By agreeing future state assumptions, a value at risk can be placed on these sites.
Using SCAIR®, companies can get the best estimate of their future value at risk across their portfolio for climate-related incidents, so that appropriate action can be taken.
They can also ensure they are fully compliant with UK law and ‘do the right thing’ from a corporate social responsibility perspective.