Climate Risk Management
Our Risk Management Framework guides our approach to identifying, assessing and monitoring all risks across our business, including climate-related risks.
Our approach to managing climate-related risks and opportunities
To ensure our risk management approach remains robust and responsive, we are strengthening the integration of climaterelated considerations into our Risk Management Framework. This includes regularly reviewing risk assessments to reflect the current operating environment, as well as evaluating controls and treatment plans to ensure our risk mitigation strategies are effective and appropriate. By embedding climate-related risks and opportunities into our broader risk management processes, we aim to enhance resilience and to support sustainable long-term business outcomes.
Physical Risks
Our physical climate risk register includes a series of both chronic and acute risks that could impact our operations. These range from risks associated with supply chain disruptions to geotechnical ground movements, changed wind patterns, major flooding and more extreme and/or frequent weather events such as snowstorms, heatwaves and hurricanes. Our risk assessments consider potential impacts to infrastructure, employee and customer health and safety and to customers. The physical risk assessment drew directly from quantitative physical climate modelling conducted across the roads within each of our businesses.
Transition Risks
Our assessment of transition risks consider market, policy and legal, reputation and technology risks. These range from changes in customer behaviour, changes in energy prices and availability and the emergence of new regulations to increasing stakeholder expectations and ineffective management of our GHG emissions profile. The transition risk assessment was based on a qualitative assessment.
Opportunities
Alongside the risks, various climate-related opportunities also arise as we transition to a low-carbon economy. Some potential opportunities include: the ability to access new markets and capital as a result of increased trust and enhanced reputation; more asset resilience; and cost savings associated with reductions in energy use and GHG emissions.
Our priority physical and transition risks and opportunities, and their potential business impacts, from our 2024 assessment are outlined here [LINK].
Overall, Atlas Arteria’s climate-related risk ratings are within the bounds of our current strategy and business model; no changes are required and no material adjustments to assets or liabilities are anticipated in the near future.
