Risks and challenges

The traditionally high carbon-emission construction industry is particularly vulnerable to the effects of climate change. With many companies coming to a standstill because of the global economic crisis and a lack of liquidity for traditional infrastructure projects, carbon-emissions legislation will further compound the problems dogging this sector.

Taxes on emissions will reduce the profitability of every new project and, to avoid reputation risk and ensure competitiveness, new guidelines on green buildings will have to be followed stringently. Construction companies that are listed will be required to communicate and report on emissions or they will risk being considered a high-risk investment. Delays may be caused by the increased magnitude and frequency of extreme weather events, which will affect profitability considerably. Margins are also under constant pressure from rising fuel and electricity costs.

Opportunities:

Although some construction companies have continued with “business as usual” despite climate-change risks, others have realised the dramatic consequences these effects could have on their businesses. By embarking on structured efficiency and emissions-reduction programmes in their organisations, leaders have been able to increase their profitability significantly. Other companies have differentiated their services by concentrating on strong growth areas, such as green building and renewable energy projects. It is also important to have communications strategies in place to promote your emissions-reduction plans and show investors that your company has direction and astute leadership.

What can GCX do for you?

• Efficiency:

Through determining your carbon footprint and a business-case energy efficiency audit, GXC will assess your company’s carbon emissions and help you to set targets and budgets that suit your business. From here, GCX will help you to implement reductions and achieve your cost-cutting goals, which include education campaigns in your organisation to engrain climate-change awareness in your company’s culture and to ensure that employees support internal initiatives. GCX will also undertake to monitor your emissions on a continuous basis. The journey towards becoming a low-carbon business also offers significant PR and marketing opportunities that can be harnessed to differentiate your company as a climate-change leader.

• Investors:

Through helping your company to formulate an emissions-reduction communications strategy, GCX will help you to assure investors that your company is managing the physical, legislative and reputation risks associated with climate change.

• Legislation and reputation:

GCX will determine the effect that carbon laws will have on your business and identify the best ways to ensure your continued profitability, which also include establishing the reputation risks posed by being affiliated with high carbon-emissions businesses.

• Adaptation:

Adaptation involves the adjustment of systems in order to respond to actual or expected weather events or their physical manifestation. These adjustments mitigate the harm or exploit the beneficial opportunities that result from these events. GCX will assess the effect that climate change will have on your supply chain and business as whole. Our specialists will highlight the risks inherent in your business model and identify solutions to this risk and help you to implement them.