Lav Goyal
Partner & Head
Business Advisory Services
Business Advisory Services
Overview
The recent assessment reports released by the Intergovernmental Panel on Climate Change (IPCC) have reiterated that ‘climate change remains an urgent challenge’. An increase in the concentration of greenhouse gases (GHG) has resulted in a rise in global surface temperature from 0.8°C in 1850–1900 to 1.3°C in 2010–2019. With temperature rise comes an increased risk of physical and economic hazards. Rapid and deep emission reduction by businesses is required to limit the global temperature rise to 1.5°C.
Climate change impacts and the resultant push for a low-carbon transition create a wide range of risks to businesses, from damaging infrastructure to disrupted supply chains, labour shortages, and rising insurance costs. On the other hand, it also provides organisations with opportunities for resource efficiency and cost savings initiatives, the development of new products and services, access to new markets and building resilience along the supply chain. The pressure on businesses to transition to a low-carbon pathway and adapt to the impacts of climate risk is mounting.
