Climate change has become an important strategic and operational issue for companies.

Climate Risks and Opportunities

Risks from climate change are already embedded, to some degree, in every business and within every investment portfolio. Shareholders are increasingly becoming aware of the fiduciary risks and require that companies show that they have considered how and where climate change risks affect their companies and the extent to which they have assessed the effectiveness of steps to reduce and manage that risk.

CDM Africa has extensive experience in the field of managing risk and unlocking opportunity and can assist businesses in communicating the long term opportunities associated with investments into climate change mitigation strategies.

Regulatory Risks and Opportunities

Regulations and opportunities: Consideration of the range of potential scenarios is especially critical for companies undertaking or planning for major capital outlays that could be affected by climate-related regulations. Companies that make an informed effort to reduce emissions now—after careful analysis of their unique situations—could find themselves in a better position to meet regulations that may eventually be put in place. Careful analysis is essential, as a company that reduces its emissions now may find itself in a difficult situation later. For example, if a company reduces its emissions by 20 percent voluntarily now, what happens if a government mandate were to appear in five years saying it must reduce emissions by 20 percent? Will the voluntary reduction be “grandfathered in?” Or will the company be required at that time to reduce its emission by another 20 percent? Some companies that anticipate regulation of GHGs may find themselves in a position to sell services or emissions credits to companies that need to reduce their emissions.

Shareholder Risks and Opportunities
Increasingly, shareholders and investment managers are asking companies about their policies on climate change. As with most issues, such questions carry with them potential risks and potential rewards. One of the first questions facing those overseeing investment accounts is: “Is there a fiduciary responsibility to address climate risk?”

Reputational Risks and Opportunities 
Competitiveness Risks and Opportunities