As businesses face increasing regulatory pressures to disclose climate-related financial risks, Mandatory Climate Reporting (previously the Task Force on Climate-related Financial Disclosures (TCFD) framework) has become the global standard, with the first compliance deadline for selected organisations in Australia set for 1 January 2025. Among the core elements of Mandatory Climate Reporting, one critical aspect is the role of severe weather impacts in evaluating and disclosing climate-related risks.
For businesses in industries such as insurance, infrastructure, and environmental consultancy, understanding and mitigating these risks isn't just about compliance—it's about ensuring long-term resilience.
Mandatory Climate reporting requires businesses to assess how climate-related risks, including severe weather events, can impact their operations, assets, and financial performance. These risks fall under two categories:
Physical Risks
Acute risks, such as cyclones, floods, and hail, and chronic risks, like rising sea levels and drought, can cause significant damage to infrastructure, disrupt operations, and increase insurance claims.
Transition Risks
Businesses face risks as they adapt to a low-carbon economy. For instance, companies may need to reevaluate assets located in areas prone to extreme weather as climate patterns shift.
Severe weather data is an important part of Mandatory Climate Reporting. It helps organisations quantify these risks and communicate their preparedness strategies to investors, stakeholders, and regulators.
Accurate reporting of severe weather impacts requires reliable data and robust analytics, yet many organisations face significant challenges in this area. These include limited access to historical and real-time severe weather data, difficulties in analysing how specific weather events impact different regions or assets, and limitations in forecasting future risks amidst changing climate patterns. Additionally, organisations often struggle to provide clear, actionable insights that meet the expectations of stakeholders and regulatory bodies, further complicating their ability to address these critical issues effectively.
Climatics is helping businesses meet the demands of Mandatory Climate Reporting by providing actionable insights into severe weather risks. Here’s how:
Comprehensive Weather Data
Climatics provides access to observed, historical data detailing extreme weather events across Australia, with records spanning decades. This comprehensive dataset includes severe weather warnings issued by the Early Warning Network’s specialist team since 2009. By analysing past trends, organisations can gain a deep understanding of climate-related risks for assets in specific locations and make informed decisions to enhance resilience.
Advanced Analytics and Climate Trends
Climatics leverages advanced analytics to provide detailed insights into historical severe weather events across Australia.
Understanding historical climate trends is essential for customers as it enables them to identify patterns and assess vulnerabilities specific to their assets or regions. With this data, they can proactively manage risks by gaining insights into areas prone to severe weather impacts and supporting regulatory compliance through accurate, site-specific reporting that meets obligations like Mandatory Climate Reporting.
Additionally, it informs long-term planning by guiding infrastructure investment, operational adjustments, and resource allocation while enhancing stakeholder confidence with data-backed insights that demonstrate preparedness and resilience. By delivering actionable analytics, Climatics empowers businesses to make smarter, more strategic decisions in an increasingly climate-conscious environment.
Our platform generates easy-to-understand reports that align with Mandatory Climate Reporting guidelines, simplifying the reporting process while building trust with stakeholders.
Preparing for and reporting on severe weather risks is about more than compliance. It’s an opportunity to enhance your organisation's resilience, protect assets, and demonstrate leadership in climate accountability.
As the January 2025 deadline for Mandatory Climate Reporting compliance approaches, there’s no better time to ensure your business is ready. Climatics provides the tools and insights to help you understand your risks and confidently meet your obligations.
Partner with Climatics to prepare your organisation for Mandatory Climate Reporting. Contact us today to learn how we can help you understand your risks, mitigate impacts, and strengthen your climate resilience.