Climate change to put transportation sector at risk

Global – The transportation, oil and gas and aviation sectors are just three of the six industries at risk when it comes to climate change, said a report by KPMG.

Healthcare, tourism, transport, oil and gas, aviation and the financial services sector have been widely recognised to be facing the highest risks according to the report entitled Climate Changes Your Business. These six sectors also scored the lowest when it comes to preparedness when it comes to face the risks.

The risks are measured in four different features; regulatory risks, physical risks, reputational risks and litigation risks. Seventy-two percent of the respondents surveyed for the report claimed regulatory risks as the most problematic.

KPMG said the oil and gas sectors were better equipped at handling the risks associated with climate change, even though the risks it faces is the highest amongst all sectors surveyed. Conversely, the transportation industry is less risky, but their level of preparedness ranks the lowest of all the sectors.

Putting the report in the Singapore context, Sharad Somani, director, Global Infrastructure and Projects at KPMG in Singapore noted that the industry segments identified as high risk are also strong contributors to the Singapore economy. It may therefore be critical for industries here to focus on the impact of climate change and have a strategy in place to address the potential implications to their company, their industry and the country in general.

"The high risk industries identified in the KPMG Report should also be included in the national strategy to address the challenge of climate change. Industry stakeholders may also want to work proactively with the government towards achieving economic growth in an environmentally sustainable manner," said Somani.