Preparing For The Unpredictable: Digital Solutions To Protect Your Industrial Operations From Climate Change Risks
Preparing For The Unpredictable: Digital Solutions To Protect Your Industrial Operations From Climate Change Risks
Climate and weather-related disasters cost the world over $100 billion in damages in 2021, with a drastic yearly increase in the number of billion-dollar disasters. 2022 saw 18 weather or climate disaster events with losses exceeding $1 billion in the US alone.
Innovative digital solutions are increasingly becoming available to help industrial firms plan for and mitigate the effects of climate risks. One tool that can be helpful is asset investment planning (AIP) software, which firms can use to incorporate external risk factors such as climate-related risks into their multi-year scenario planning analysis. For example, Ovarro partnered with Atkins to develop climate scenarios and evaluate the impact on model output and investment requirements. PIONEER, Ovarro's AIP solution also supports probabilistic climate scenarios, allowing firms to achieve their goals with a specified level of confidence. In the 2022 Verdantix global corporate survey, over a quarter (27%) of the 301 executives in operations, process safety, maintenance and engineering roles mentioned having plans to invest in commercial AIP software – an increase from 21% in the 2021 global corporate survey.
Another tool that can be helpful to mitigate climate-related risks is climate intelligence software. This type of software uses data and analytics to provide insight into the potential impacts of climate change on an organization's operations. Cervest, a London-based climate intelligence platform provider, enables users to see how different weather events could affect their assets in a time frame of up to 80 years.
Overall, while it is impossible to completely eliminate the risk of and costs associated with extreme climate events, there are technologies that firms can deploy to try to minimize the impact of these events on their operations.
For more information on AIP software, read the recently published Verdantix Buyer’s Guide: Asset Investment Planning Software.
