8. Our Approach to Climate Risk
Jacobs published two climate risk disclosures, in 2020 and 2021. Our 2020 report was a qualitative assessment and allowed us to explore the process and align ourselves with the TCFD reporting framework.
Our 2021 report went a step further and provided a qualitative and quantitative assessment of our main climate-related risks and opportunities across all markets and lines of business. Within each market, we estimated the broad financial value of material climate impacts we could experience by 2050, under contrasting climate scenarios.
Our approach is structured around the TCFD framework and applies IPCC scenario analysis as a lens through which we can better understand our main physical and transitional climate-related risks and opportunities.
For more technical information about our approach, see our Climate Risk Assessment document.
Task Force on Climate-Related Financial Disclosures (TCFD) Framework
Governance
- Climate-related risks and opportunities are integrated into our Enterprise Risk Management (ERM) processes, led by our Senior Vice President, ERM.
- The PlanBeyond Executive Steering Committee has oversight responsibilities for our Climate Action Plan. Regular updates are reported to the Board by Jacobs' Chair and CEO.
- A new Board Committee for ESG (Environmental, Social and Governance) and Risk was formed in April 2021.
Risk Management
- Created and deployed Jacobs' Climate Risk Manager tool to assess climate-related risk to our offices and major projects.
- Climate risk embedded in ERM framework. ESG (and climate) identified as a top risk area and subject to ongoing management and oversight.
Strategy
- Global market leaders engaged in an assessment of the strategic climate-related risks and opportunities to inform business adaptation and resilience.
- Climate Response placed at the heart of our company strategy, covering energy transition, decarbonization, adaptation and resilience, and natural resource stewardship.
Metrics & Targets
- First annual report to the Sustainability Accounting Standards Board framework (SASB).
- Achieved our Climate Action Plan commitment to 100% renewable electricity for our operations and carbon neutrality for our operations and business travel in 2020.
What are our Climate Risk commitments?
Integrate
climate risk analysis
into company strategy and planning.
Deploy
climate risk assessment technology
on all pursuits and projects where climate risk is considered material.
Support
our clients and major suppliers
to undertake their own climate risk assessments, in line with TCFD recommendations.
Integrate by 2025
climate risk & adaptation considerations
into each of our market sector strategies.
In 2022, we are undertaking a climate adaptation pilot focusing on the water market – to develop a process that can then be applied consistently across all our markets. The pilot approach is based on adaptive planning principles in IS014090, the international standard on Adaptation to Climate Change, and involves:
- Expansion of relevant climate scenario analysis and deeper analysis of key physical and transitional risks in the water market.
- Collaborative consultation with our clients for broader stakeholder perspective, recognizing that the process will lead to mutual benefits.
- Establishment of a pilot process that helps identify adaptation interventions in the water market.
- Consolidating and embedding learning from the pilot approach across our global business.