One of our well-known FTSE 100 clients wanted to step change their climate related reporting and decision making in line with the EU regulatory compliances. SmartResilience stepped in to deliver a more efficient and economical result for the business, than the previously tried options.
The client’s objective
Our client’s goal was to be able to make action oriented strategic business decisions, which would reduce their costs associated with risk impact due to extreme weather. Operating across 50 countries, they had assets like offices, factories, farms and warehouses, that were at risk of climate impact. They sought a TCFD- aligned climate scenario analysis solution, which could assess both physical and transition climate risks and opportunities, and could be scaled across the various sites.
The challenge:
They had spent a considerable amount of time and resources commissioning work from one of the world’s leading professional consultancy firms, but to their dissatisfaction, the results were incompatible, lacking transparency and actionability.
The report they received was based on the standard “black box” climate model, lacked granularity, and failed to contribute to the company’s objectives of meaningful improvements to risk-related outcomes and financial efficiency.
Looking for a result-focused alternative partner, the client launched a tender for a more innovative solution in analysis and visualisation. SmartResiliece was awarded the tender basis the capabilities we could provide.
Our Solution:
SmartResilience provided a clear, flexible and outcome focused solution enabled a dynamic climate risk analysis with multiple levels of granularity.
We collaborated with various stakeholders - sustainability, finance, risk and insurance - to model the risks in a transparent and agile manner across their factories, farms, offices and warehouses.
We modelled floods, wildfires, cyclones, and hurricanes, and analysed heat, drought, and water stress.By combining scientific models and data analysis techniques, we localised projections by site.
Lastly, by combining our Asset Damage and Business Interruption methodologies, we provided transparent and precise financial risk quantification and reparation steps geared towards actionability.
The results:
By deploying SmartResilience’s real-time, 24/7 monitoring and early warning systems across 50 countries, the client achieved the business objectives they had set out:
They successfully strengthened their TCFD reporting capabilities in line with global climate regulations.
They reduced 50% of costs associated with climate analysis, and now can use data to further mitigate climate-related damages and insurance costs across their business operations.
What their Global Head of Environmental Sustainability had to say
“I would recommend SmartResilience to any business wanting to bring clarity to their climate impact assessments. SmartResilience’s platform has significantly enhanced our ability to understand, process, and visualise climate impacts at varying levels of detail—empowering decision-making at site, region, and group level. This has enabled us to better protect our operations from climate risks and better prioritise strategic opportunities. It was also surprisingly painless to roll out to 53 countries over 6 weeks.
Compared to other solutions, SmartResilience provided superior visualisation tools that made complex data more accessible and actionable. The integrated alerting functionality has been particularly valuable in engaging our global sites, ensuring that the benefits of proactive climate risk management are realised across the organisation”
