How we build climate resilience into our business

Closer to home, recent extreme weather events point to some of the risks for industry and commerce as well as infrastructure and communities. Like many homes, business properties in flood-risk zones have become uninsurable, and coastal erosion is jeopardising properties once considered safe. Events once considered impossible in the UK are now starting to be seen, with wildfires devastating parts of London in recent years.

Business insurance premiums in general are rising as underwriters adjust their pricing to reflect these mounting risks. Investing now to mitigate future damage to sites, premises and equipment also imposes a financial burden. But the opportunity cost is likely to be far higher – in reduced productivity, business interruption, loss of revenue and/or contractual penalties, repairs to undo damage, and the belated investment in rebuilding to higher standards of resilience.

Regulatory guidance on climate risk

For companies operating under environmental permits, there are additional risks – and obligations under government regulations. The Environment Agency expects operators of licensed sites to integrate climate change adaptation into their management systems¹.

Standard risk assessments should consider not only currently foreseeable site-specific impacts but those predicted for a 2C rise by 2050 and a 4C rise by 2100. The guidance highlights the threat posed by – extreme rainfall leading to floods, heat waves, drought, rising sea levels and tidal surges, storms and wildfires.

Within SUEZ recycling and recovery UK, our Environment and Industrial Risk (EIR) team is leading on climate adaptation – by assessing the vulnerability of our sites and operations, and by producing adaptation plans.

The immediate focus of this work is on enhancing the resilience of our assets and equipment, and protecting our people – for example, through procedures that safeguard front-line workers in heatwaves. These priorities intersect with just about every aspect of the business and my other responsibilities as Chief Business Services Officer – including, facilities, HR, and health and safety.

Embedding risk management in site operations

We have completed site-specific assessments of climate risks for all our operational locations. The findings are now embedded in the environmental management system that integrates all our procedures for controlling how we work. This unified management system governs not just environmental impacts but also safety and quality.

Each assessment identifies:

• risk exposures
• potential impacts
• existing controls
• any remedial or mitigation measures required

These assessments will be reviewed and updated periodically, and following any significant changes in site operations, relevant scientific knowledge, or regulatory requirements.

As well as UK statutory guidance, we are following the Sustainable Development Roadmap of the global SUEZ Group. It details a timetable for identifying priority sites for climate adaptation, building adaptation plans, and their implementation and monitoring.

This exercise involves carrying out in-depth analysis for 20 different climate risks (listed in the EU’s taxonomy of climactic hazards) for the aforementioned two different climate change scenarios. Sites are also gauged against the SUEZ Group Natural Hazards standard.

Understanding sites’ vulnerability

We deployed a comprehensive questionnaire to assess the vulnerability of our sites to climate-related risks and compliance with the EIR standard. The questions probed four main areas:

• Past events involving extremes in temperature, water, wind and impacts on land, such as subsidence or landslides – along with the associated health and safety, and economic consequences.
• Structural vulnerabilities related to location and topography, the condition of site buildings and type of equipment and materials stored on site. Procedures for inspecting this infrastructure, protective measures and working conditions were also considered.
• Non-structural vulnerabilities, such as insurance cover, warning systems, the resources devoted to crisis and risk management, and communications with employees, stakeholders and emergency services.
• Supply chain issues including protocols for managing disruption in supplies and utilities and business continuity.

The SUEZ estate, its plant and technologies are diverse. Geographically, it ranges from Aberdeen to Cornwall to the Isle of Man, and from highly urban to rural; while facilities are engaged in activities such as energy-from-waste, alternative fuel manufacture, through composting and anaerobic digestion, to landfill management. As a result, there are inevitably some facilities that are classed as priorities for adaptation.

Partnering for greater resilience

More widely, the threat of climate-related impacts is an opportunity to create value for all our customers in the private and public sectors. Not just by future-proofing our operations so we can minimise disruption to our essential services amid natural emergencies. But also, by sharing our long-term perspective to inform their own climate change adaptation and emergency planning.

In addition, we create social value by working closely with communities and schools to help educate them on reducing waste and minimising environmental impact, ensuring the benefits of our climate resilience work extend beyond our operations and into the communities we serve.

The focus of our EIR team is now shifting from assessment and planning to implementation. This is how we will increase the resilience of our sites and assets, and protect our people and services, as our climate continues to change.