RWS Annual Report 2022 web - Flipbook - Page 55
c. Resilience of the organisation’s strategy,
taking into consideration different climaterelated scenarios, including a 2°C or lower
scenario
In FY22 we strengthened our approach and actions to
climate-related risks and opportunities to align RWS with
the TCFD recommendations.
As mentioned above, when considering our climate-related
risks and opportunities in the short, medium, and long
term, we reviewed our climate scenario analysis to assess
potential impacts and opportunities for RWS against
possible climate futures. We assessed three different
climate scenarios, set by the latest science and known as
Representative Concentration Pathways (‘RCPs’). RCPs are
used by the Intergovernmental Panel on Climate Change to
illustrate future concentrations of greenhouse gases in the
atmosphere. The climate scenarios we used were:
Low
emission
scenario
(RCP 1.9)
A predicted global temperature increase which
limits global warming to below 1.5, the global
aspiration goal of the Paris Agreement
Medium
emission
scenario
(RCP 2.6)
A predicted global temperature increase
between 1.5°C and 1.7°C by 2100, compared to
preindustrial levels. This would bring the world
in line with the Paris Agreement of 1.5°C. This
is commonly referred to as the best-case and
most ambitious scenario
High
emission
scenario
(RCP 8.5)
A global temperature increase between 3.2°C
and 5.4°C, where carbon emissions continue
growing unmitigated. With no mitigation, this
is deemed the worst-case scenario
The locations of all our offices and supply chain were
considered due to our dependence on our people to
deliver our services. We conducted the analysis across
three time horizons: short term (one to three years),
medium term (three to five years) and long term (five to 10
years). Consistent with TCFD, our assessment covered the
following:
•
Physical risks: resulting from climate change events and
changes in weather. These can be acute (event-driven)
or chronic (long-term shifts)
•
Transition risks: associated with the implications from
the measures taken to reach a low carbon economy.
These can be policy and legal, technology, market and
reputation
•
Opportunities: realised capitalisation of benefits upon
the low carbon market and technological drivers. These
can be from resource efficiencies, energy sources, new
products or services, markets and resilience
We have incorporated these scenarios into our climate
change risk assessment and based on our assessments
so far, no significant risks have been identified from the
scenario planning that we are unable to mitigate. The
risk assessment is reviewed bi-annually. Over time, as
global trends develop, any additional significant risks and
opportunities which are identified will be incorporated into
the scenario planning.
As a provider of services, we believe we are well positioned
to offset potential adverse impacts by adapting our
operations and engaging with our clients and suppliers to
maximise opportunities as we transition to carbon net zero.
We are focused on reducing our global carbon emissions
as quickly as possible. As part of our goals (see page 28),
we are driving emissions out of our business through a
range of initiatives including improving energy efficiencies,
renewable energy, reducing waste, reducing travel where
possible, availability of homeworking and developing a
socially responsible suppliers’ network.
Our research and development investment focuses on
enhancing our service offering. This includes improving the
efficiency of how we deliver our services in which we utilise
technology which in turn reduces the carbon emissions
generated from our services. Investment in research and
development is considered over short, medium, and long
terms (from one to 10+ years).
We manage the risks of climate change as mentioned
previously, with oversight by the Board and Audit
Committee as part of our risk management process. We are
tracking and reporting on our carbon emissions globally.
We are pursuing best practice by engagement with the
United Nations Global Compact initiative, Race to Zero,
seeking to set science-based targets and disclosing against
the TCFD framework.
We are working with our suppliers to ensure that their
carbon management ethos matches our own. This will
expand our influential reach beyond that of just our
company and demonstrates that a consistent and truthful
message is shared with our stakeholders regarding our
own environmental management practices. We are rolling
out our Supplier Code of Conduct to all suppliers and
have developed a Sustainable Procurement Policy – our
engagement will focus on the short to medium term (one to
five years).
STRATEGIC REPORT RWS — Annual Report 2022
55
