Climate-Related Risks

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