The increasing evidence globally of physical climate impacts – wildfires, floods, rising temperatures – is driving a greater sense of urgency in building adaptive capacity and resilience to climate.
We are improving our understanding of the potential physical implications of climate change for our operations and neighbouring communities and the impact of these on long-term strategic plans, including the cost of increasing the resilience of the Company to the physical impacts of climate change.
Early in 2022 we will conduct a climate change scenario analysis at each operation, using the Representative Concentration Pathway 4.5 and 8.5. These scenarios will provide insights into the extremes of both physical risks (RCP 8.5) and transition risks (RCP 4.5). These will be followed by site-specific physical climate risk assessments using our risk management processes and tools.
Improving our climate change-related practices and disclosures
The Financial Services Board’s Task Force on Climate-related Financial Disclosures (TCFD) recommendations for voluntary and consistent climate-related financial risk disclosures has gained prominence as a guide to best practice reporting on climate change.
Demonstrating our support for the TCFD and commitment to climate change mitigation and adaptation, in 2021 we engaged independent consultants to analyse and benchmark the Group’s governance structures, business strategy, risk management practices, and climate-related metrics and targets against the TCFD recommendations. This exercise identified gaps and areas for improvement, which we are responding to decisively.
Implats will issue a standalone TCFD inception report at the end of 2022. In striving to fully align our reporting processes with TCFD requirements by the end of 2023 and build climate resilience, the following are key developments and commitments: