The global business community is undergoing a transition towards a green economy driven by a shared recognition of the urgent need to address climate change, protect natural resources, and promote sustainable development.
As businesses in South Africa and elsewhere adopt sustainable practices and environmentally conscious strategies, they can expect to encounter two categories of risks as identified by the Taskforce for Climate Related Financial Disclosures (TCFD). The first consists of existing risks stemming from the impacts of climate change. The second encompasses transitional risks that arise during the transition to sustainable practices.
First category
- Physical risks
Physical risks are those associated with the direct physical impacts of climate change.
An example is the Durban floods of 2022, which demonstrated a physical risk resulting from climate change. The heavy downpours caused extensive damage to infrastructure, including roads, bridges, and buildings. Additionally, homes were lost, properties were destroyed, and businesses in affected areas experienced significant economic losses. This resulted in…
Jean-Paul Rudd | Partner | Adams and Adams | mail me |
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