IndexRisksTransient RisksTechnologyMarketPhysical RisksAcuteChronicOpportunitiesResource EfficiencyEnergy SourceProduct/ServicesThe three-step risk analysis process is a useful tool for identifying risks and opportunities for future scenarios. Risks are defined and classified with scenarios chosen in compliance with the purpose, time and intensity of the impacts. Collecting internal and external data that addresses exposures, vulnerabilities and hazards is essential. Calculation of impacts to follow in risk identification and uncertainty analysis to discover financial implications. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Risks There are two subdivisions of risks: transition risks and physical risks. Transition Risks Transition risks occur when APEC economies are in transition, aiming for net-zero emissions. Due to climate change there will be changes in policies, regulations, legislation, technology and market preferences. Governments are increasing regulations on carbon emissions by imposing more significant obligations on the disclosure of information related to sustainable developments. APEC has placed particular emphasis on pollution control and prevention and sustainable infrastructure development. Faced with growing demand for construction and urban development, APEC supports the use of sustainable business models that support efficient, low-carbon products and processes (APEC, n.d.). It is likely that you will see an increase in the number of paintings to deal with; Cost of fossil fuels due to new carbon pricing mechanisms. Imposition of restrictive cap and trade systems. Increased costs for companies that emit carbon dioxide. If energy efficiency and emissions control measures are not sufficient, Lendlease's operating costs will increase due to renewable energy standards, regulations and taxes. In response to political and legal risks, specific short- and long-term plans should be put in place to address key areas of concern. Creation of carbon dioxide and energy performance management strategies and policies. Integration of emissions management into management (including Impacts and costs of carbon emissions in CAPEX and M&A decisions). Evaluate the profitability in each planning and planning scenario of emission level management. Technology The demand to replace existing products and services with those based on low-carbon technologies must be taken into account in the analysis of future scenarios. Both new and old technologies play a vital role in low-carbon economies. Technology transition in supply chain, operations and other business areas can be costly. The cost risk of the new technology is considerably greater than current carbon pricing mechanisms that could prevail in the event of successful implementations. Lendlease makes assumptions about the performance and costs associated with implementing new technologies. Below are the main areas of interest in technological changes. Energy (solar, wind, biofuel, unconventional gas, electricity) Energy storage Energy efficiency (heating, ventilation, air conditioning) Low carbon solutions in materials (cement/concrete, steel) Low energy consumption operationsRecycling and waste disposalThe commitment to initiatives that requirehuge investments in the development of new technologies will be fundamental for future business processes. MarketEach scenario involves changes in consumer behaviors, market fluctuations, uncertainty, and increases in materials and costs. As the carbon debate intensifies in the future, sustainable business processes in the construction and building materials industry will be top of mind for customers in their decision-making. If the regulatory framework fails to mandate low-carbon products, customers may be reluctant to pay the additional costs integrated with the low-carbon initiative. This will put Lendlease's zero carbon initiative and road map at risk. The building and real estate markets must ensure that an energy-efficient building has a competitive advantage in future markets. Organizations that are not taking initiatives to reduce emissions should see a decline in their market share. Changes in customer or community perceptions, criticism about emissions, and growing concern among stakeholders can damage the Lendlease brand image. Supporting sustainability-focused business processes and assuring the public of Lendlease's environmental responsibility will help maintain the Lendlease brand. Lendlease's commitment and contribution to climate change mitigation and adaptation must be well documented and transparently communicated among stakeholders and the public. Seeking environmental credentials in different markets and marketing them appropriately is critical to communicating efforts. Physical Risks Physical risks identify physical impacts occurring in Lendlease's business operations due to climate change. The effects of climate change will disrupt operations leading to high operating costs and reduced production capacity and capacity. Since physical risks affect the entire value chain, pricing structures will change in the future. Acute and chronic are two subdivisions of physical risks, separated based on their behaviors and nature. Acute risks are event-driven risks, including the increased severity of extreme events such as cyclones, floods, bushfires and heatwaves. Possible impacts would be loss or damage to assets including plant, machinery, equipment and property. These impacts will lead to a reduction in production capacity and revenues. Increasing asset resilience by improving defenses can reduce impacts, and creating contingency plans will reduce the effects on business practices. Arranging insurance for crucial assets is helpful for a quick recovery. Chronic Chronic risks are defined as long-term changes in climate, which include high temperatures, which cause sea levels to rise. Sites and resources have a direct impact on sea level rise, and droughts can create countless problems. Operating costs are expected to vary based on impacts, including resource scarcity and increased raw material costs. Developing mitigation strategies, creating preventative measures, and risk assessments based on asset locations are some of the measures that can be implemented. Contingency planning and careful, strategic supplier selections will be helpful for rapid, long-term responses to address impacts. Opportunities The TCFD recommendations identify five areas of climate change-related opportunities that Lendlease can utilize in its efforts to mitigate and adopt net-zero emissions pathways. .Resource efficiencyThe creation of new policies to address.