Climate change risk management

Leading precious metals mining group, Gold Road Resources, appointed Adapta as its principal advisor to deliver a 6-month climate risk and opportunity assessment program with a primary goal of advancing step change activities to become a more sustainable, resilient, and profitable mining operation. Adapta undertook multi-disciplinary, staged climate scenario analysis across the company’s operational portfolio in Western Australia, and delivered qualitative and quantitative advice, which was repeatable and targeted to its desired climate strategy and disclosures. Gold Road benefited from the provision of benchmarked and institutionally endorsed analytics of physical and transition climate-related financial impacts to assist the re-pricing of its operational assets; a suite of data inputs to help it align more fully to the TCFD Recommendations; critical strategy insights for future climate-related and ESG investment decision making; and a carbon reduction road map supported by verified renewable energy generation options and carbon markets analytics. Adapta’s program ultimately helped Gold Road achieve step change carbon reduction without offsets, enhancing resource and energy efficiency, future resilience, competitiveness, and stakeholder confidence by assuring a strategy supported by the sustainable allocation of capital to integrated disclosure and renewable energy investment, exploration, and life of mine (LOM) planning.

Adapta was appointed principal advisor to deliver a climate risk assessment which analysed the impact of physical climate risks of 60 listed assets of a real estate investment trust (REIT) commercial property portfolio located in APAC. Adapta delivered qualitative and quantitative research findings and modelled impact analysis of the physical and transition climate-related risks and financial impacts to the portfolio. All assessment outputs were aligned with the Taskforce for Climate related Financial Disclosure (TCFD) reporting guidelines. A range of acute and chronic physical climate risks were analysed that assessed multiple forecasted emission scenarios and timesteps including a Paris aligned scenario (i.e., a long-term global temperature pathway to hold global average temperature increases to well below 2°C above pre-industrial levels by 2100.) Our analysis provided near term and long-term organisational benefits and strategic insights relevant to investment, acquisition, and the company’s ESG performance through providing for a well targeted and higher quality climate related disclosure. Our value at risk property data, and high-risk asset mapping allowed the client to correctly price and evaluate its assets and more sustainably allocate capital to its future business activities. The advice was further applied to engage executive, board, and investor support to integrate an endorsed method for portfolio and investment stress testing and adaptation planning into the corporate governance strategy, due diligence, and risk management procedures to assure portfolio resilience and value retention into the future.  

Adapta has recently completed the scoping and design of a Net Zero 2028 Scope 3 mapping and disclosure program for a diverse asset management group operating in APAC. More details can be provided upon request.

Adapta was commissioned by a global building and construction products manufacturing group to lead the design and development of a climate-related risk and opportunity assessment. Adapta designed and conducted the scope in close consultation with the newly appointed, USA based Sustainability Executive team leaders responsible for the management of a multi-billion-dollar manufacturing and distribution portfolio situated across 7 different regions and jurisdictions. The program involved two stages: A first stage qualitative assessment which comprised of detailed research, scenario analysis, peer benchmarking and risk evaluations of the impacts of transitional and physical risks and opportunities on the company’s global operations. The assessment covered multiple research foci including carbon pricing, policy and regulation, operational and supply chains, chronic and acute physical risks, reputational, market based, product and technology risks and included in depth risk evaluation, organisational and TCFD road mapping advice. Second stage quantitative analysis of the physical and transitional climate risks and financial impacts was also advanced to address the company’s cross market operations and manufacturing assets. The client’s investment in climate risk assessment ultimately equipped them with industry best practice outputs to evaluate and prepare its portfolio, products, value chain and highest value assets for short, medium, and long-term climate impacts. The work facilitated a sustainable allocation of capital in the client’s business planning and product development activity.  

Adapta has also completed the design and development of a Net Zero carbon transition strategy roadmap and packaging waste compliance analysis program for a pharmaceutical manufacturing company operating in APAC. More details can be provided upon request.

Adapta's Managing Director, Ben Munro, was engaged by an independent federal MP as a senior policy advisor to prepare a climate policy white paper. In the role, Ben undertook independent research for the purposes of preparing a staged policy position paper which presented a framework and road map to responsible and socially just transition climate change action in Australia. The policy position paper was presented across the Australian Federal Parliament for consideration and was foundational to subsequent federal climate change bills. The policy foci of the paper included: increasing national contributions and greenhouse gas emission target ambition; review of major party policy on climate change action; review of cross-sectoral climate change mitigation strategies; climate change adaptation guidelines and regulations; relevant pathways for socially just transition; a planning strategy to transition from traditional to renewable energy; management electric vehicle uptake and vehicle emission standards; integration of multidimensional impact modelling and circular economic principles and the SDGs in decision making; review of plastic waste policy; methods for biosecurity assurance; review of pollution control and environmental management measures; the ongoing roles of governance, unions and business within a just transition model; climate advocacy versus market ready renewable energy generation capacity; discussion of carbon emissions materiality, and the significance of physical risk monetization, climate risk assessment, climate action monitoring and reporting.