Strengthen climate adaptation systems

The company faces growing climate risks linked to extreme weather events that may disrupt operations and supply routes. As part of its 2030 ESG Strategy, it committed to strengthening climate adaptation across both its industrial sites and surrounding municipalities. To address these challenges, it sought to better understand physical climate risks, improve operational resilience, and support local governments in strengthening regional climate preparedness.

Location: Brazil

The company implemented two complementary climate adaptation initiatives:

1. Operational Adaptation:

   • Applied climate projection models to assess exposure to future climate scenarios.

   • Created a Climate Vulnerability Index to classify operational units by risk level.

   • Used the index to prioritize investments and design preventive measures, including contingency plans for extreme events.

2. Public Management Support:

   • In partnership with Votorantim and Itaúsa Institutes, developed the Climate Action Initiative, a platform offering tools, training, and solution development to strengthen municipal public administration.

   • Engaged multisectoral stakeholders to co-design adaptation responses with local governments.

Visuals, data layers, and risk maps supported the assessment and planning process.

Sustainability Impact

Climate

The initiative targets physical climate risk exposure across Scope 1, 2, and 3 operations, particularly in areas vulnerable to extreme weather. By updating climate projections and classifying facilities through the Climate Vulnerability Index, the company strengthened its capacity to anticipate and manage climate-related disruptions. Operational actions, such as designing alternative transport routes, help maintain continuity and reduce potential emissions from unplanned downtime or rerouting.

Nature

Improved planning for extreme events reduces the likelihood of environmental incidents (e.g., supply chain disruptions or unplanned releases) by enhancing preparation and response capacity.

Social

Training and engagement with municipalities strengthened local governance and enhanced community resilience. The initiative mobilized 170 participants, including public institutions, private organizations, and civil society actors, supporting better preparedness for climate-related risks.

Business Impact

Benefits

• Improved operational continuity and reduced downtime during extreme events.

• Enhanced long-term risk management through climate-informed planning.

• Strengthened relationships with local governments and communities.

• More efficient allocation of adaptation investments based on risk classification.

Costs

Typical costs include:

• Investments in climate modelling, data processing, and technical assessments.

• Development and maintenance of the Climate Action Initiative platform.

• Staff time and engagement for municipal capacity-building.

Costs depend on regional data availability and required modelling depth. Using shared platforms and partnerships helps reduce overall expenditure.

Typical Business Profile

Most relevant for companies:

• With multiple operational sites exposed to physical climate risks

• Operating in regions with vulnerable infrastructure

• At an intermediate or advanced stage of climate strategy development

• Wishing to integrate adaptation into broader ESG commitments

Approach

• Gather historical climate data and develop future climate projections

• Build indicators and apply them to create a Climate Vulnerability Index

• Classify operational units by vulnerability level

• Prioritize adaptation investments and develop response measures (e.g., alternative logistics routes)

• Partner with public institutions and foundations to develop a training and solutions platform

• Implement the Climate Action Initiative with selected municipalities

• Facilitate multisectoral engagement and deliver mentoring sessions

Stakeholders Involved

• Project leads: Sustainability and risk management teams

• Company functions: Operations, logistics, planning

• Main providers: Votorantim Institute, Itaúsa Institute

• Other stakeholders: Municipal governments, public institutions, private sector partners, civil society organizations

Key Parameters to Consider

• Adaptation maturity: Use of established climate modelling tools; platform is scalable.

• Typical timeline: Data modelling and index development require multiple months; municipal engagement extends over several months.

• Technical constraints: Availability of reliable climate and geospatial data.

• Geographic considerations: Most relevant in regions exposed to extreme weather.

• Partners: Access to technical partners improves delivery of training and tools.

• Funding: Philanthropic or institutional partnerships can reduce implementation costs.

Implementation & Operations Tips

• Ensure early alignment between sustainability and operations teams.

• Use visual tools (risk maps, dashboards) to communicate findings clearly.

• Engage municipalities early to tailor solutions to local needs.

• Maintain regular updates of climate projections to keep the index relevant.

• Strengthen cross-sector collaboration to expand participation and uptake.