Leveraging weather intelligence for climate change reporting
One of the most visible impacts of climate change in recent years has been the increase in extreme weather events. From record-breaking heat waves, such as the 2022 U.K. summer, to intense flooding in Germany and wildfires in France and Spain, Europe is increasingly reckoning with unprecedented events that may be soon considered “the new normal.”
The recent United Nations Climate Change 2023 report warns that more extreme weather events will occur with continued incremental climate warming. Interestingly, while extreme weather events are a harmful effect of climate change, it is weather—or rather the application of weather analytics – with advanced technology that will help organisations better report climate impacts.
Reporting Climate Risks to the Organisation
Over 90% of the world's largest companies will have at least one asset highly exposed to the physical impacts of climate change by 2050, according to S&P Global Data. This could have substantial financial impacts on the company and its stakeholders. Last year the U.K. began requiring large companies, banks, and insurers to report climate risk in their annual reports. Climate risk disclosure centres around two major types of risk: transition, tied to direct and indirect greenhouse emissions, and physical. Innovations utilising advanced technology are identifying changing weather risk profiles because of climate change, such as increased flooding exposure or increased hurricane impacts.
Risk communicators, who are meteorologists with deep industry expertise, can help these organisations by developing a tailored climate risk strategy based on the company’s individual risk threshold and threats while understanding the changing climate and weather landscape. Not only would the company be better able to identify and report immediate weather risks to regulators and stakeholders, but by using artificial intelligence and advanced modelling, a company could be better informed of potential future threats based on evolving climate conditions and develop a weather risk plan to mitigate when these threats become imminent.
Reporting Climate Impacts from the Organisation
Reducing greenhouse gases is crucial to slowing climate change and warming. Using weather intelligence combined with advanced data science techniques, such machine learning and digital twin technology, can help enable companies to better monitor and report environmental impact. For example, maritime regulations require shipping operators to report on carbon emissions as it relates to vessel efficiency and fuel usage. Weather is one of the most significant variables affecting these outcomes.
Appling digital twin technology using the specific characteristics of the vessel, route, and environmental factors a shipping company can assess potential carbon emissions before the voyage begins and adjust accordingly.
Using powerful data science techniques to model atmospheric and oceanic conditions and operational data sets, a ship operator can also plan a shipping route that best reduces fuel usage and carbon emissions and adjust performance in real-time to meet sustainability goals and regulations.
Shipping is only one example of how weather analytics and advanced technology can help industries and businesses virtually map out their reduced impact ambitions to optimise them before the implementation stage. Using Operational Intelligence, or integrated real-time analytics, can further help businesses monitor climate impact and adjust in the moment.
Monitoring and reporting on sustainability is essential for the future of business, whether it is the result of a potential physical risk to the company, or a contributed environmental risk by the company. Using advanced technology, along with data science techniques, and weather intelligence is a powerful approach to help companies meet investor and stakeholder expectations, mitigate risks, comply with regulations, and meet their net-zero ambitions.