Business leaders should act now to start integrating climate risk into their decision-making to build resilience and minimize losses. According to the World Bank Group’s Country Climate and Development Report (CCDR), extreme climate-related events, environmental degradation, and air pollution can reduce Pakistan’s GDP by at least 18 to 20% by 2050. To address this, businesses must:
- Assess Vulnerability: Evaluate how climate risks (both physical and transition) might impact operations.
- Embed in Risk Management: Integrate climate risks into Enterprise Risk Management programs.
- Scenario Analysis: Quantify risks and opportunities through scenario analysis.
CERB recognizes the urgent need to enhance the capacity of Pakistani businesses to integrate climate-related risks into their internal risk management framework. The organization is actively developing Pakistan-specific resources to support companies, which is imperative for annual reporting on ISSB Standards and attracting international investment. CERB partnered with GIZ Pakistan (on behalf of the Federal Ministry of Economic Cooperation and Development (BMZ)) on a project called ‘Private Sector Readiness to Address Climate-related risks’ to develop:
Climate Change Readiness Study 2024: This study assesses the awareness and approach in Pakistani businesses to address climate-related risks within the operations and in their value chains. The survey explored four main areas: Business Actions for Climate Change, Managing Climate Risks, Organizational Climate Strategy, and Climate Governance/Leadership.
Climate Change Risk Awareness Toolkit 2024: This toolkit provides businesses with an introductory understanding of the risks to enterprises stemming from climate change, and the current and potential future effects of those risks on manufacturing, textile, finance, Agri-business, and other businesses.
The Climate Change Readiness Study and Climate Risk Awareness Toolkit serve as a guide for companies to comprehend and tackle climate related risks and opportunities within their business organizations.
