Post by Oliver Wyman

Energy companies must assess how they handle the increasing risk of climate-related weather events. By 2050, climate-related events could cost the energy industry $150 billion without immediate adaptation and resilience measures. These strategies can help: ✅ Conduct a portfolio-wide climate risk assessment of both current and future risks ✅ Translate physical exposures into financial metrics, like expected loss and recovery timelines ✅ Remove single points of failure via a prioritized roadmap combining asset hardening, operational continuity measures, and supply chain mitigation measures ✅ Revisit insurance and financing strategies to manage the total cost of risk where it cannot be fully eliminated Combining these approaches will help energy companies better manage climate risk where they can and to prepare for the unknown where they can't. Learn more: https://owy.mn/4ttNAC6