Risks and opportunities associated with climate change

The company analyses the environmental and climate change risks to which the projects are exposed, as well as the implementation of the necessary measures to mitigate these.

The environmental risks of greatest impact for the company are:

  • Uncertainty regarding new environmental regulation
  • The changes in the conditions of the physical environment
  • Vulnerability to natural catastrophes

To control and manage these, Abengoa establishes mitigation mechanisms, such as increasing safety coefficients in the design of projects considering the most unfavourable meteorological and environmental parameters.

In addition, the Global Risk Management System allows us to detect new business opportunities such as:

  • Increase of renewable energies business, if regulations governing fossil fuels become more stringent
  • Increase of water demand caused by the potential rise in temperatures or greater number of sunlight hours through decreased rainfall
  • Lobbying from stakeholders to introduce measures against climate change, through consolidated collective awareness in environmental terms

Carbon price

Abengoa has developed its mechanisms for calculating internal carbon prices in 2016, to align them with the emerging climate regulation as a result of the Agreement and with the evolution of the business itself.

At present, two internal carbon pricings differ for the first time: one applicable to our businesses in countries with mature systems for taxing GHG emissions and another for countries that do not have these mechanisms:

  • 6tCO2/€ Regions with emission trading schemes
  • 0,1tCO2/€ Regions without emission trading schemes

For the company, this new internal calculation mechanism makes it possible to foresee the impact of the new climate change policies as a result of the Paris Agreement and its possible derivation in CO2 levies in the different geographic areas where we operate.

These prices also incorporate the cost of the actions developed by the company to reduce emissions.

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