UK Climate change adaptation reporting (ARP4) – what next?
With the first reports from the fourth round of the climate change Adaptation Reporting Power now available online, Technical Director, Ben Rabb reflects on the key takeaways and what’s next.
The terminology surrounding climate and nature risk may sound complicated, however, the most straightforward part involves disclosing your climate risks or developing an adaptation plan.
It remains important to understand, quantify, prioritise and plan to adapt to climate and nature risks. The tricky part is taking the opportunity to build resilience and enhance value creation in practical ways.
Drivers for organisational action on climate and nature
Here at JBA, we’re seeing four key drivers for action:
- Climate impacts – the frequency and severity of climate and nature-related losses are accelerating
- Regulatory landscape and legal liabilities – national polices, industry standards and climate related disclosure frameworks (e.g. Task Force on Climate-related Financial Disclosures (TCFD), IFRS S2, EU Corporate and Sustainability Reporting Directive (CSRD), Taskforce on Nature-related Financial Disclosures (TNFD), ISO14091, ARP4)
- Stakeholder expectations – from communities, employees, suppliers or shareholders
- Strategic opportunities – to facilitate growth and protect or increase asset value
A framework to focus on
The recent increase of sustainability-related disclosure requirements can feel bewildering – both for the public sector and private companies. However, the spirit has not strayed far from the original four pillars of the TCFD and TNFD:
- Governance: What governance do you have around climate and nature-related risks and opportunities?
- Strategy: How are climate and nature related risks and opportunities integrated into your overall strategy?
- Risk management: How do you assess and manage climate and nature-related risks?
- Metrics and Targets: How do you measure performance metrics and targets related to climate change and nature?
These four pillars are as relevant to organisations already obliged to report, as they are those who aren’t (yet). The important point to make is that it simply makes good business sense to take these steps seriously – whilst also contributing to an economy-wide transition.
Supporting you to take practical action on climate and nature
We can provide thorough climate and nature quantification services to help inform detailed adaptation. Through our depth in technical expertise, we can also provide support for:
- Complex compound and cascading risk transmission storylines
- Bespoke weather, climate and nature impact/cost models
- Adaptation pathway planning and decision making
- Enterprise risk and asset management
- Flood risk modelling, forecasting, resilience & emergency planning
- Natural catastrophe modelling and parametric insurance
- Nature Based Solutions (NBS)
- Decarbonisation and climate transition risk
- Remote sensing & water resources management
- Energy systems
- Heritage & social value
For more information about the support we can provide, please contact Ben Rabb.
