Managing climate-driven financial impact on ingredients supply and facility damage
Industry use case – food and beverage
The industry challenge
Assessing the financial impact of climate change on global operations is a key concern for global food and beverage brands. Climate-related weather events impact ingredients supply and can lead to damages and disruption to facilities. Identifying the most pressing financial risk to business is critical to strategic planning.
How we help
Working with a global food and beverage brand, the Risilience-powered platform, Riise, delivers climate analytics to surface business-first insights, including an aggregated and comparative understanding of the financial exposure for centralised, regional and local stakeholders. These insights support the company to make and prioritise strategic decisions to mitigate yield impacts and damage to value chain facilities.
Step-by-step solution
01.
Create virtual physical footprint by building a Riise digital twin, capturing locations of key facilities and ingredient sourcing volumes by country.
02.
Improve resolution of ingredients’ growing locations and hazard exposure using Riise global and local production layer data.
03.
Apply climate change models (CMIP6) to assess the impact of climate hazards on crops and value chain facilities.
04.
Convert damage and disruption and yield impacts into unifying metrics, including revenue/costs shocks and EarningsValue@Risk
Results
Ingredient sourcing is identified as the largest threat; facility damage and disruption less than expected
Exposed ingredient sourcing to be diversified and/or protected
Insights aid business case to reduce exposure for operational ‘pinch-points’.
Risilience
Climate and nature risk is business risk. Find out how the Risilience platform delivers insights for global corporates to understand the financial implications of climate-and-nature-related risks and opportunities.
Risk identification
Risilience helps you identify the material climate-related financial risks your company faces. Our analysis covers both physical risks that could impact your operations and supply chain and transition risks as the world moves towards a lower-carbon economy. Our solution helps pinpoint relevant risks based on your operational footprint, industry sector, and value chain, aligning with the qualitative and quantitative disclosure requirements
Summary financial impact of climate risk.
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Connect with Risilience
Learn how our award-winning platform, Riise, and expert team support global businesses to quantify the financial impact of climate-and-nature-related risks and opportunities.