Climate Risk Management
The recent natural disasters of droughts, wildfires, flooding and other record-breaking weather have amplified societal salience of climate change. The increased frequency of these events exposes us to a number of several risks and opportunities:
1. Physical risks – changing and more intense weather patterns and disasters. These physical risks can have a direct impact on our infrastructure, supply chains and the regions we operate in with the potential to cause economic ramifications to KBR.
2. Transitional risks – Transitioning to a low-carbon economy may present risks to the business such as carbon tax, carbon pricing, policy and legislative changes and market impacts. To mitigate these transitional threats we have made efforts to transition away from a reliance on the hydrocarbon industry and harness opportunities in new energy and emerging markets.
For more information, see our TCFD index.
We understand and recognize the importance of anticipating and responding to the longer-term emerging sustainability risks, both physical and transitional in nature that may impact our organization:
- Extreme weather events and patterns
- Sea level rises
- Temperature rise
- Carbon pricing
- ESG permitting restrictions
- ESG reporting and compliance requirements
- New low carbon or emissions technology cost, availability and reliability
- Raw materials cost
- Supply chain resilience and reliability
- Evolving customer requirements
- Evolving societal perception and preferences