According to an FM Global analysis evaluating the economic, supply chain, and climatic risks of 130 countries, Australia is a robust option for companies trying to expand to new markets.
Australia is significantly more capable of addressing climate-related risk than many other countries, since it ranks 20th in the quality of climate risk.
An online tool for multinational corporations wanting to enter new markets is the Resilience Index from FM Global. Each country receives ratings and rankings based on the evaluation of the climate, supply chain metrics, and risk quality.
Australia receives a score of 68.1 for economic aspects, 91.5 for risk quality, and 80.2 for supply chain, placing it in position 19, 16, and 24 respectively.
Two additional measures have been assessed for the first time in the index this year. Extreme weather occurrences are reflected by climate risk exposure, and climate risk quality evaluates each country’s construction regulations, enforcement, and facility upgrades to prepare for climate disasters. Australia performed poorly, coming up at number 107 in terms of exposure to climate risk. As a result of our capacity to address climate-related risks, we currently hold the 20th-best ranking for climate risk quality.
According to a release from FM Global, the two filters allow index users to narrow their attention on the Resilience Index’s climate risk and economic, social, and governance (ESG)-related metrics in order to better understand country risks and possibilities via these lenses.
According to Greg Duncan, Australia operations vice president, client service manager at FM Global, “many organisations are now more willing to confront a changing climate and limit risk, but increasingly, investors and regulators are also demanding transparency.”
Overall, Denmark has the best location, scoring 100 out of 100 and taking the top spot. Singapore has the best supply chain, and Luxembourg has the best economic status.
Two additional indicators have been included that take the pandemic into consideration: health expense and supply chain timeliness. Australia is ranked 23rd for supply chain timeliness and 16th for health spending, respectively, with scores of 48.2 and 81.7.
Building resilience to produce long-term sustainable outcomes is essential to company success, according to Duncan, whether coping with dangers posed by a changing climate, adapting to conflict, managing a pandemic, or achieving ESG requirements.