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Section 1 – The risk landscape
I S Y O U R O R G A N I S A T I O N P R E P A R E D F O R H I G H I M P A C T R I S K S ?
C L I MAT E A N D E N V I R O NM E N TA L R I S K
The prominence of climate change on the global business agenda (something that might arguably increase still further thanks to the potential COVID-19 has to shine a spotlight on more existential, global and indiscriminate risks) does not translate into a concern about an immediate impact for most respondents. However it is important to bear in mind that environmental issues are increasingly recognised as touching on organisational, reputational, economic, competitive and regulatory factors, all of which are seen to have a bigger impact than environmental issues – it is therefore important to see environmental drivers in the context of the overall risk picture.
Societal and environmental risks were identified as the least likely to have an impact on organisations. There has been a small increase in the proportion of both General Counsel and Board Directors who say that environmental risk will have a high or very high impact on their organisations, but it remains near the bottom of the hierarchy of risk concerns.
Risks (as ranked by Boards)
Respondants answering – No Difference (%pts)
30 % 18 %
-1 2
Organisational
24 % 29 %
Environmental
+5
Market competition
-8
20 % 12 %
ENV I RONMENTAL RISKS ARE INCREASINGLY I NTEGRATED WI TH L EGAL , REPUTAT I ON AND F I NANC I AL R I SKS . I F CL IMATE CHANGE I S NOT CURBED AND TACKL ED, THERE ARE POTENTIALLY SERIOUS CONSEQUENCES. THERE I S AN I NCREASE I N CL IMATE - RE LATED LAWSU I TS AROUND THE WORLD…SUCH AS RWE , THE LARGEST CARBONS EMI TTER I N EUROPE , BE I NG SUED FOR CL IMATE - RE LATED MATTERS .
18 % 6%
-1 2
Societal
17 % 18 %
Political
+1
-7
13 % 6%
Reputational
12 % 0%
-1 2
Technological
7% 18 %
Regulatory
+1 1
-6
6% 0%
Economic
16 % 12 %
-4
Mean average
Partner, Business Services
General Counsel Board
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