Building lasting climate resilience
If our businesses are to thrive for the next 200 years and more, we must anticipate challenges and be ready to adapt. Building climate resilience is such a challenge and meeting it is vital for us to thrive in the long term. We need to design buildings that can withstand extreme weather events and to deal with the consequences of rising sea levels at ports and airports.
Our operating companies are developing climate resilience strategies. By 2020, they expect to have identified the physical and transitional risks climate change poses to their businesses. Having done that, they will plan how best to mitigate those risks. In doing this, we will be contributing to a sustainable future for our business, the environment and the communities in which we operate.
We will ensure that our operating companies are prepared for, and have the capacity to withstand, the negative impacts of climate change.
Climate change will cause water scarcity, volatile crop yields and more frequent extreme weather events. Regulations will change in response to this. The World Economic Forum identified the failure of climate change mitigation and adaptation, extreme weather events and natural disasters as three of the top five global risks in its 2017 Global Risk Registry.
Our businesses need to identify and manage the physical risks of climate change to their operations and supply chains. They also need to identify and manage the risks associated with changes in regulation consequent upon climate change, in particular those changes in regulation which result in a transition to a low carbon economy.
Climate resilience is the ability of our businesses to prepare for, mitigate and recover from the costs and other effects of climate change. We have made climate change a core element of SwireTHRIVE because it will become increasingly important and increasingly relevant to our ability to create long-term value for our shareholders.
Planning ahead on climate change will make us more resilient and better equipped to create lasting success. Therefore, we are requiring our operating companies to consider climate change risks when compiling their risk registers, and to take appropriate precautionary measures. Some of our operating companies are already building climate resilience into their operations.
We have adopted a climate change policy. The policy covers climate change mitigation, adaptation and building the adaptive capacity of our businesses, our employees and the communities in which we operate.