ANNOUNCEMENTS
Climate-related risks have taken a centre stage in the sustainability discourse as more and more stakeholders are gaining awareness of these threats. Businesses are expected to have in place frameworks for identifying, assessing, and evaluating risks and opportunities associated with climate change. Unfortunately, a lack of adequate knowledge regarding both the nature of climate risks and the methods for addressing them becomes a significant bottleneck. This brings about a need for an effective framework to allow businesses to manage and mitigate such challenges. This study is an exploration of the intersection between climate science and business strategy. It provides a framework for businesses to translate abstract climate risks into actionable financial metrics. The study quantifies the impacts of extreme heat and water stress resulting in increased operational costs, decreased productivity, and ultimately financial losses. A review of six major companies in India's resource-intensive industries—cement, steel, and power—reveals serious vulnerabilities and emphasises the pressing need for targeted and sustained risk-reduction plans. By bridging the knowledge gap between theory and practice, the study offers businesses the tools and insights they need to effectively manage the challenges posed by a changing climate.
Keywords: Climate-related risks, Water stress, Loss of Labour Productivity, Climate Scenarios.
