The TCFD recommended disclosures and our responses can be found in the independent Climate Risk Review.
Aker Solutions has identified several climate-related risks and their potential business impacts.
Physical Risks
- Extreme weather, floods and drought
- Changes in natural resources (water scarcity)
Potential impacts
- Damage to physical assets
- Disruption to operation, supply chain, market, public infrastructure
- Degradation or limitation on resources
Market Risks
- Change in consumer and investor behaviour
- New production models
Potential impacts
- Viability of business models
- Change in company valuation and access to capital
Regulatory and Liability Risks
- Carbon tax, energy regulations, product efficiency regulations
- Lawsuits from parties who suffer damage
Potential impacts
- Compliance cost
- Restriction on use of carbon intensive assets
- Liability cost
Reputational Risks
- Concerns surrounding the nature of company’s activities and impacts
Potential impacts
- Damage to brand value
- Lost revenue
- Challenges recruiting talent, and attracting investors, lenders, and political goodwill
Technology Risks
- Breakthroughs or incremental improvements
Potential impacts
- Existing technologies becoming obsolete
- Required investment in new technologies
- Write offs for technologies, stranded assets