On February 18, 2021, the Climate Governance Initiative Russia, in partnership with Deloitte CIS,  held a round table called Physical Risks and Opportunities for Russian Companies: Winners and Losers.

The following experts spoke at the event: Tatiana Mitrova, Director of the Energy Center of the Skolkovo Business School, Board Member of Novatek and Schlumberger; Alex Čaičics, Head of ECG/SRI Communications at Polyus; Daniel Wolfe, Independent Member of the Board of Directors and Chair of the Audit Committee at Uralkali and the Segezha Group, Co-Founder and Managing Partner of Simoleon Long-term Value Fund; and Robert Kupreishvili, Head of Casualty at AIG Russia.

The speakers discussed which Russian industries and regions are most exposed to climate risks, as well as the potential socio-economic implications of physical climate risks for Russia and other countries. They agreed that the most vulnerable industries include energy, metals, transportation, forestry, and agriculture.

The roundtable also featured a presentation on environmental insurance as a climate risk-management tool.

Furthermore, the discussion covered practical tools to help directors assess the impact of physical climate risks on their companies and stakeholders and build better business strategies accordingly. Particular attention was paid to nine important questions that all independent directors should ask boards today. These were formulated by Acclimatise, a UK-based consulting and analytics company that specializes in climate change adaptation and risk management:

  1. Governance: What governance mechanisms are in place for the management of current and future physical climate risks?
  2. Resourcing: Does the Board have access to the right skills and knowledge it needs to institute a robust physical climate risk management strategy and monitor performance?
  3. Assurance: How is the company assured of the adequacy and rigor of its climate risk management policies and practices and disclosures?
  4. Resilience: Has the company defined a strategy to build resilience to climate-related physical risks?
  5. Risks: Has the company conducted a baseline assessment of physical climate risks and opportunities for hazard types relevant to the company’s footprint, operations, and supply chains?
  6. Impacts: What are the key material impacts of long-run climate change and extreme events on the company?
  7. Opportunities: Has the Board identified the opportunities associated with physical climate impacts that have the potential to boost the accomplishment of strategic goals and increase value to shareholders and other stakeholders?
  8. Liability: Has management identified instances where physical climate impacts could create or increase liability risks?
  9. Metrics: How will the company measure success regarding its management of physical climate risks?

During the discussion, attendees noted that identifying, assessing, and managing climate risks is an integral part of any risk management system.


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