MANAGING CLIMATE CHANGE RISKS
Risk management accountability and oversight of our operations is an integral part of GEI Mekong’s corporate governance. The Board and senior management are regularly provided with insights on industry trends and climate-related risks and performance against risk appetite.
Our approach to climate change extends beyond consideration of climate-related risks and portfolio resilience. Reducing GHG emissions in the communities we operate in is a key component of our climate change strategy and we recognise the importance of taking action to support efforts to reduce emissions across our operations. We will continue to leverage our investments through our low and negative emissions technologies and natural climate solutions, because we believe it is the right thing to do for our our global community.
For GEI Mekong, climate-related risks can be grouped in two categories: operational risk and physical risk. Operational risks arise from policy, regulatory, legal, technological, market and other societal responses to the challenges posed by climate change and the transition to a low carbon economy. We consider operational risks as part of our strategy discussions and investment decisions.
Physical risks include acute risks resulting from increased severity of extreme weather events, and chronic risks resulting from longer-term changes in climate patterns. We include consideration of the potential vulnerabilities of our operated assets, investments, portfolio, communities, ecosystems and our suppliers and customers across the value chain in assessing physical risks.
The global push for zero carbon emissions is an attractive scenario for GEI Mekong, our shareholders and the global community. Not only is reducing GHG emissions at our operated assets, a key component of our climate change strategy, but we recognise the importance of taking action to support efforts to reduce emissions across our full value chain.
We will also continue to advocate for actions in line with the Paris Agreement goals and seek partnerships to leverage our own investments in low emissions and negative emissions technologies and natural climate solutions, because we believe it is the right thing to do for our shareholders and our global community.