3. Risk management Processes for identifying and assessing climate-related risks Climate-risk assessments are done every two to three years on average to identify and assess climate-related risks. These risks are measured and prioritized by the potential impact they could have and likelihood of occurring. In addition to managing these identified risks and opportunities, we ensure we are kept apprised and compliant with existing or emerging climate-related regulatory requirements as they relate to TTEC through our third-party partner.
TTEC identifies some financial risk related to the chronic physical risks of climate change. Potential financial impacts may be felt in the areas of capital and financing, company assets and liabilities, and revenues. There could be potential business disruption due to extreme climate events. TTEC identifies material financial risk related to the transition to a low-carbon economy, specifically related to policy change and legal or litigation issues. Policy changes may create negative financial impacts in the areas of expenditures, capital, and financing. TTEC acknowledges that this risk is highly dependent on the political context and environment of its countries of operation. Litigation or legal issues may pose a negative financial impact on company expenditures, revenues, assets, and liabilities. Technological advancement is viewed as a potential risk with impacts related to the longevity of infrastructure grids that the Company relies on and impacts on the company's supply chain. Specifically, the ability of the Company to source replacement parts is a risk associated with technological change in the near term.
The following groups hold oversight and responsibility of climate-related risks and opportunities
Physical Risks Acute
Finance, Operations, People and Culture, Legal and Compliance Finance, Operations, People and Culture, Legal and Compliance
Chronic
Transitional Risks Policy
Legal and Compliance, Finance, People and Culture
Market risk is identified as a low risk to the Company with potential negative financial impacts on revenues.
Litigation Legal and Compliance Technology Finance, Operations, Global Technology Office, IT Market Operations, Finance, Legal and Compliance Reputation Legal and Compliance, Finance, People and Culture, Corporate Communications Opportunities
Financial impacts of climate-related opportunities:
Reputational change is identified as a possible opportunity for the Company over the short term with a potential positive financial impact on revenues. Resource efficiency is identified as an opportunity with potential positive financial impacts on expenditures, assets, and liabilities. Similarly, shifting energy sources to renewables and mixes is identified as an opportunity with positive financial impacts on expenditures and revenues. Products and services are not identified as an opportunity. TTEC does not identify opportunities related to its markets.
Resource Efficiency
Finance, Operations, People and Culture, Legal and Compliance Finance, Operations, People and Culture
Energy Sources
Markets Operations, Finance, Legal and Compliance, Sales and Marketing Resilience Legal and Compliance, Operations
64 TTEC 2023 Impact and Sustainability Report
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