47
Mitigating risks in a dynamic environment
During 2018, AAK used the Aqueduct tool to create a
global water risk map covering all production facilities.
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locations.
In order to further investigate these risks, and to
work in a more preventative manner, AAK initiated a
program to conduct climate change risk assessments
for all production facilities by 2020. This will be followed
by the implementation of more detailed action plans in
cooperation with a third party who has solid experience
with our production facilities.
The assessments target risks related to extreme
weather phenomena such as high sea water levels,
storms, tornadoes, water-stressed areas, and
unforeseen temperature shifts. The purpose of the
assessments is to evaluate climate risks at each
production site and to review the mitigating actions
which have been implemented to reduce the risk for
property damage and business interruption.
During 2019, 56 percent of our production sites were
visited as part of the assessment. The results show that
water (high water level/heavy rain) and storms/tornadoes
are the main contributor to the overall risk score
for the production sites. Based on recommendations
from the third party these nine sites have been engaged
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risks.
AAK has created a global risk map of all our production
facilities to visualize the combined climate risk
exposure. None of our sites are exposed to extremely
high risk. The highest combined inherent risk has been
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where water exposure presents the greatest risk, and in
Louisville, USA, where the greatest risk is exposure to
tornadoes.
In Zhangjiagang, the inherent risk has been taken into
account in the design of the site, including raised ground
level, and mitigating actions have been implemented
to reduce the risk to a medium residual risk level. In
Louisville, the new wastewater treatment facilities have
been constructed to withstand higher windspeeds, and
emergency planning has been updated to handle more
severe weather (tornadoes) and to limit personal and
property damage. While these improvements are a
positive step forward, we are aware that climate change
is a dynamic risk which we must continuously mitigate.
Note that only nine production sites have been
assessed during 2019. The remaining production sites
are not included on the global risk map.
Low risk
Low risk to medium risk
Medium to high risk
High risk
Extremely high risk
Contributes to: