emerging
Climate Change Risk
Climate change is becoming a major concern, driving regulatory changes, impacting business models, and requiring increased sustainability reporting.
Timeframe
near-term
Categories
Detailed Analysis
Climate change is rapidly climbing the risk agenda in Asia Pacific. Organizations are facing pressure from regulators, stakeholders, and extreme weather events to address sustainability. This trend is leading to increased focus on climate-related disclosures, the development of sustainability roadmaps, and the integration of sustainability into the entire value chain. The report emphasizes, "Almost 50% of survey respondents expect effects of climate change to be a top 5 risk at their organizations in the next three years."
Context Signals
New regulations and policies driving increased involvement from internal audit functions.
Growing board focus on sustainability requirements and disclosure reports.
Increasing physical impacts of extreme weather on operations and insurance costs.
Edge
Emergence of greenwashing as a significant risk requiring increased scrutiny.
Need for internal audit to develop expertise in sustainability reporting standards and global trends.
Opportunities for businesses to develop new green products and services.
