March 2020 |
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We were engaged by APA Group to assess its climate resilience encompassing both transition and physical risks of climate change for its operations to 2050. Using scenario analysis, which included a scenario that limits global average temperature rise to 1.5°C and varying socioeconomic parameters, we stress-tested the group. By considering the various decarbonisation pathways, our bottom-up economy-wide model evaluated the gas demand and the ensuing impacts to APA’s business. This enabled APA to evaluate the financial impacts of each scenario on its current asset portfolio to test resilience. We worked closely with the APA project team and engaged with senior leadership to ensure that the rationale for scenario parameters and the implications of each scenario for its assets and business model were thoroughly understood. The outcomes were aligned with the recommendations of the Taskforce on Climate-related Financial Disclosure (TCFD) in APA's 'Climate Change Resilience Report'. |
