First National Climate Risk Assessment Report Released
Changes in climate, from increased fire severity and heat waves to flooding and sea level rise to coastal erosion, will all affect Australia in the decades to come. To facilitate climate risk reporting and transparency, the Australian Government has just released the National Climate Risk Assessment Methodology report (“the Risk Assessment”), which is the first insight into the expectations of climate risk reports that will become mandatory on 1 July 2024.
3-step Process
The Risk Assessment outlines the approach the Australian Government has taken to measuring its climate risk, which is a 3-step process:
The first two stages have been completed, and the final stage is currently underway. In their assessment of risk, the Australian Government considered medium-term (2041-2060) global warming of 1.5°C and 2°C and long-term (2081-2100) global warming of 2°C and 3°C.
National Climate Risk Assessment - First pass assessment report found that there are 56 significant risks, distributed among the following 7 systems:
Defence and national security
Health and social support
Infrastructure and built environment
Natural environment
Primary industries and food
Regional and remote communities
Cross-system:
Communities and settlements
Economy, trade and finance
Governance
Supply chain
Water security
Of the initial 56 significant risks, 11 were identified for a Second Pass assessment, one from each of the systems above and 5 from cross-system (being the last 5 listed), as follows:
Domestic disaster response and recovery assistance,
Health and wellbeing,
Critical infrastructure,
Aquatic and terrestrial ecosystems or landscape function and collapse,
Primary industries,
Regional, remote and First Nations communities,
Legacy-and-future planning,
Real economy**,
Governance structures,
Supply and service chains, and
Water security.
** Real economy: direct and indirect long-term implications
These risks were selected for their impact, scope, and ability to be actioned. The Second Pass assessment is expected to be completed at the end of 2024.
With this report, Australia takes the first step towards climate risk reporting, with mandatory corporate reporting to follow soon.
Greenbase is here to help
If you need help understanding your company’s climate risk or do not know where to start, get in touch with Greenbase. With over 20 years of environmental and sustainability experience, Greenbase is uniquely positioned to guide you and assist you with navigating reporting changes and updates.
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