AmazonScience/document-haystack

1Table of summary of quantitative CSA work for each risk2FLOODING3Risk description Most relevant climate scenario and time horizon Likelihood rating and description Impact rating and description Overall risk Mitigation actions4Context5Flooding is the major physical 6climate-related risk in the UK and 7under climate change conditions 8it is expected to increase both in 9intensity and frequency (projections 10show that intense rainfall and flash 11flooding could become almost five 12times more likely by the end of the 13century). Based on findings from the 14latest UK Climate Risk Assessment, 15in a 4°C scenario damages to 16businesses could increase by 17around 44% by 2050 and 75% 18by 2080.19Reach has offices and print sites in 20more than 15 locations across the UK 21and Ireland. The level of flood risk 22(including surface, river and coastal 23flood risk) varies depending on the 24site, its location and the systems it 25depends on. The direct and indirect 26impacts of extreme weather events 27were identified as the main physical 28risk to Reach. Indirect impacts might 29be of most relevance as downtime 30in the energy system and blocked 31access to sites can cause disruption 32to operations.33Risk category: Physical, Acute34Link to existing principal risk:  35Supply chain disruption36High carbon and medium term 37(to 2050s)38Both low and high-carbon scenarios as 39well as near, medium and long term have 40been included in the analysis of flood risk. 41The most relevant scenario is the high- 42carbon scenario (analysed using climate 43modelling output from RCP8.5) and the 44time horizon at which the increase in the 45risk might be significant compared to the 46baseline period is the 2050s.47Rating:48This varies depending on the 49site but overall it has been 50categorised as very unlikely 51direct exposure to flood but 52possible indirect exposure.53Description:54We have analysed flood 55exposure at each individual 56site using a range of free and 57at-cost datasets, representing 58the best flood models available 59to assess current and future 60flood exposure. For the most 61relevant time horizon and 62scenario, we have identified two 63locations which in the future are 64expected to be directly exposed 65to flooding (but the vulnerability 66of these sites was categorised 67as low and hence not at 68considerable risk). In addition, 69projections show that a number 70of sites are expected to be 71indirectly exposed to flooding 72(i.e. site not expected to flood 73but surrounding areas 74might flood).75Rating:76The potential impact of a flood 77varies per site but overall it has 78been categorised as being low 79for office sites and major for 80print sites.81Description:82A set of vulnerability 83considerations were 84assessed at site and Group 85level to determine the state 86of preparedness for flooding.87If a flood event was to occur 88at an office site, the level of 89impact was categorised as 90low as there is generally no 91critical equipment that could 92get damaged, and employees 93have the ability to work from 94home. Hence, the overall 95impact on operations would be 96minimal. At print sites, assuming 97a flood event occurs, the 98impact was categorised as 99major given the potential 100damage to material and 101equipment and impact on 102operations if the energy 103system was impacted.104Rating:105Overall categorised as low/106moderate (ranging between 107low to moderate depending 108on the site). Financial impact 109expected to be minimal in a 110future climate scenario and 111considering Reach’s strategy 112and measures in place.113Description:114Risk per site was estimated 115by combining information 116on likelihood and impact. 117While the risk varies per site, the 118overall risk to Reach has been 119categorised as low/moderate, 120given the mitigation measures 121available and the existing 122insurance to cover damages. In 123addition, given Reach’s strategy 124to become a digitally-focused 125business, flood risk to print sites 126would decrease as the strategy 127is implemented.128• Existing working from home 129policy for office-based 130workers if offices are 131inaccessible.132• Existing warning system to 133inform employees in the 134case that working from 135an office is not possible.136• In specific sites, elevation of 137water-sensitive materials 138and equipment to above 139ground-level.140• Back-up power generators 141at print sites.142• Contingency plans for print 143sites (shifting printing load 144between sites).145• Planned move to digital and 146reduce reliance on printing.147TCFD report continued14861149Reach plc Annual Report 2023Strategic Report Governance Financial Statements Other Information150The secret drink is a "smoothie".