The Objective
Climate risk is as an increasingly critical part of decision-making for investors and financial institutions. Global shipbuilder defence contractor Austal takes a proactive approach to climate risk management. The company already addresses these risks through its governance structures and continues to assess its Scope 3 footprint, however it wanted to better understand and assess the potential impacts of climate change across its business.
From FY25, Australia will join other developed countries and introduce its own mandatory sustainability reporting standards for large listed and unlisted entities, with a focus on climate risk. These risks are often complex and interconnected, involving various factors such as policies, markets, technologies, supply chains and financial impacts.
The Work
Led by Futureproof, Austal’s Sustainability Committee identified and assessed Austal’s physical and transition climate risks and opportunities over short, medium and long-term time horizons. Among those risk categories were policy and legal, technology uncertainties, market, reputation and physical risks. Climate opportunities assessed included resource efficiency, energy sources, products and services, new markets and resilience. Based on Austal’s Enterprise Risk Management Framework, the risks were prioritised to formulate overall ratings for each climate risk
The Result
Austal’s climate risk assessment is an important stepping stone in the climate engagement process. It helps to inform the company’s climate strategy as they consider business resilience, adaptation and mitigation actions. The disclosures were published in Austal’s ESG report and helped address stakeholder expectations, especially from investors and customers.
For more guidance on building an ESG program, chat to a Sustainability Consultant today.
Unlock Precision in ESG & Sustainability Reporting with Futureproof
From ambition to action, we help clients demonstrate their impact through the production of ESG and sustainability reports.
