Responsible Business Report 2023

Further information

57

Risks

Opportunities

In the table below and opposite, we describe these risks, as well as their potential impact and the timeframe in which this will likely materialise. These six risks have now been taken forward for high-level scenario analysis.

We take the same approach to identifying and assessing the opportunities presented by climate change. In this case, we developed a shortlist of nine opportunities, which we reduced to the two most material. We are preparing our business to leverage these opportunities.

Type of Risk Description of Risk

Impact

Timeframe

Opportunity

Impact

Timeframe

We are working to develop mitigating controls for each of these climate-related risks. For example, business travel is our greatest climate-related risk and one of our greatest sources of Scope three emissions. To mitigate this risk, the Board have recently approved global sustainable travel principles, to be enacted in regional specific travel policies, supported by an awareness campaign. The default position is now that our people should consider whether travel is or is not required. Where travel is deemed necessary, then the mode and class of transport are considered based on their relative emissions. For example, rail travel is preferred to flights and economy flights to business class. All Regional Travel Management Companies are being instructed to present greenest options first, no longer the cheapest.

Decarbonising Business Travel in line with public commitments may be costly and disruptive Failure to integrate sustainability into business strategy and perform against climate targets Not meeting enhanced emissions reporting and/or verification obligations Inability to deliver low-carbon services or products Client engagement messaging and external communications not sufficiently describing Clyde & Co’s work to mitigate its climate impacts Reputational damage through working with clients in carbon- intensive industries

Increased demand for services from clients due to environmental laws and regulations Partnering with clients and horizon scanning legislation to co-create a future-proof Clyde & Co client offering

Reputation

Medium Short-term

Medium Medium-term

Reputation

Medium Medium-term

Medium Medium-term

Policy/legal

Medium Medium-term

Market

Medium Medium-term

Reputation

Low

Medium-term

Reputation

Low

Medium-term

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