QUALITATIVE ASSESSMENT OF CLIMATE RISKS FOR COMPANIES IN THE RUSSIAN FUEL AND ENERGY COMPLEX

Abstract

This paper presents the existing methodological recommendations for assessing the climate change risks of fuel and energy companies. The classification of climate risks is presented in accordance with the most authoritative methodological recommendations for assessing climate risks - the recommendations of the Task Force on Climate-Related Financial Disclosure (TCFD). Climate risks are divided into two categories: risks associated with the effects of climate change (physical risks) and risks associated with the transition to a low greenhouse gas economy (transition risks). Physical and transition risks are described, as well as the possible consequences associated with the occurrence of the risk. Climate risks of three Russian companies representing the Fuel and Energy Complex (FEC) are considered. For each company, a description is given of the risks, both physical and transient, identified by the companies as a result of climate change and the mitigation or adaptation measures developed by the companies. Conclusions are drawn on the need to assess climate risks and take them into account when implementing the business process of managing greenhouse gas emissions in order to reduce future costs arising from the onset of climate change.

Keywords

• climate risks
• climate change
• sustainable development
• fuel and energy companies