We use the same governance structure to deal with climate change risk as we use to deal with all risks to our business. We weigh climate change risk in proportion to all other risks and monitor it regularly. There are currently no limate change risks among the firm’s principle risks.
We’ve outlined below what we see as the main climate change risks to our firm, listing those that would have the biggest impact first.
|Climate change risk||Cause||Trend||Mitigation/Opportunity|
|1||Failing to incorporate climate change thinking and legislation into our services.
Our people must be aware of the risks and opportunities climate change may bring to the audit, tax and advisory services they offer our clients.
|New understanding of climate change and associated issues, including expected changes to climate, weather patterns, sea levels and the availability of water.
Changes to the law, or voluntary standards.
|Expected long-term increase||We update our staff training to include new legislation, as appropriate, and run an ongoing sustainability awareness programme for our people.
Policy, legislative and other changes in the commercial environment offer us opportunities to help clients develop strategies to deal with climate change.
|2||Disruption to UK and international travel, preventing our people from delivering client engagements.
We rely on our people being able to support clients across the UK and around the world. Our ability to move people around is critical.
|Severe weather or flooding associated with climate change.||Expected long-term increase||We invest in technology and behaviour change programmes to encourage alternatives to travel, such as using web-conferencing with our clients instead of avoidable travel.
This allows us to deliver our services to clients with less disruption.
|3||More expensive travel||Increasing fuel costs and tax.
Potential inclusion of airlines in carbon trading schemes.
|Expected increase||The need for alternatives to travel helps us reconsider the way we work – with a view to cutting our costs, our carbon emissions and to enhancing our people’s wellbeing.|
|4||Rising energy costs
We need energy to deliver services to our clients, primarily for our buildings and information technology.
|Potential energy price increases
UK regulation, including:
|Increasing||We have an energy and carbon reduction strategy in place.
Our innovations mean we’re gathering valuable expertise which we can use to help our clients solve these problems too.
|5||Less energy security - leaving us at risk of being unable to work.||Potential UK and worldwide resource constraints for fuel and electricity.||Expected increase||Our drive to reduce energy consumption across our offices and our investment in trigenerators which run on recycled cooking oil give us greater predictability, lower energy consumption, carbon emissions and costs.|
|6||Breaching environment-related laws
Our reputation as a trusted adviser rests on us meeting regulatory requirements.
|UK regulation, including:
||No significant change||We have strong controls in place, including our ISO 14001 Environmental Management System, to ensure compliance with all regulation.
Our client work on policy development and evaluation means we’ve the expertise to respond fast and well to regulatory and legal changes impacting our business.
|7||Failure to meet stakeholder expectations relating to climate change and sustainability.||Rising awareness and understanding of climate change and its business implications.||No significant change||We’ve established methods for discussion with our stakeholders to understand their expectations of us, and take action to mitigate any reputational risks which are identified.|
We’ve analysed the risk of climate change to our firm and are now implementing the following measures to help us adapt appropriately:
See our risks section to find out more about our approach to sustainability risks.