On February 22, 2024 a presentation of methodological recommendations for assessing risks associated with climate change took place at the Kept office. The document, designed for the broad market, is a universal guide relevant to both non-financial and financial sectors. It outlines the main approaches to identification, qualitative and quantitative assessment of climate risks, as well as to development and update of risk management measures.
Andrey Sharonov, CEO of the ESG Alliance, highlighted the relevance of the methodology both for companies within the Alliance and outside it. “We note that in the professional community more and more attention is switching from the topic of mitigation to the issues of adaptation to climate change. In Russia, this trend is reflected both in the actions of the regulator - we are talking about the recommendations recently published by the Bank of Russia on climate risk management, - and in the preparation of regional adaptation plans.”
These recommendations are of particular interest to the manufacturing sectors. As Vladimir Lukin from Kept noted, “A distinctive feature of the methodology is that when assessing risks, a process approach is used, which allows us to identify the impact of climate change on each production process and the production system as a whole.”
En+ is one of the first users of this methodological recommendation. Anton Butmanov, Director for Sustainable Development, and Alexey Spirin, Director of the Environmental and Climate Risk Management Department, shared the company’s practical experience in assessing climate risks at production facilities and making relevant practices an integral part of the company’s business routine.
Mark Sidorovsky from the Financial Stability Department of the Bank of Russia highly appreciated the methodology prepared by Kept and the Alliance and noted its interconnection with the recommendations of the Bank of Russia on climate risk management: “Financial companies for which are targeted by the recommendations of the Bank of Russia are exposed to climate risks not directly, but indirectly - through their clients. Application of the methodology designed by Kept and the ESG Alliance would make it possible to create a database useful for the financial sector - each non-financial company, assessing the relevant risks using this methodology, would be able to provide necessary information about risks to financial companies.”
Oksana Lipka from the Yг. A. Izrael Institute of Global Climate and Ecology spoke about the role of science in the development of adaptation measures as the most important source of historical climate data and forecast calculations.
Tatyana Romanenkova from SIBUR informed the participants about the largest project for voluntary tree planting, which is being implemented by the company to compensate for climate impacts. Tatyana believes that adaptation measures make it possible to build an effective work plan to cooperate with the region, the regulator, and ensure long-term business sustainability.
Experience in developing adaptation measures at the regional level was presented by Irina Akhmedova from Yugra University. Irina spoke not only about the stages of preparing the regional adaptation plan, but also about the challenges and barriers that local experts had to face.
Lyudmila Kozhanova, head of the ASI educational program for regional management teams “Adaptation of Russian regions to climate change,” spoke about the efforts of other regions to develop adaptation measures. The program materials are planned to be widely distributed to ensure the maximum coverage among other regions and to promote the importance of the climate agenda at the local level.
A video recording of the event is available at the link:
