Kao Data_ESG Report 25-26_SP - Flipbook - Page 57
Introduction
Environmental
Social Sustainability
Governance
Climate risk analysis:
Deep dive
Operational disruptions:
Climate events can disrupt
operations, impact service
delivery, potentially resulting in
昀椀nancial losses.
Climate risks informed by Jupiter analysis
To maximise our impact and minimise risk exposure,
Kao Data views climate change in two ways. Firstly, we
consider the impact of our business on the climate,
and secondly, we assess the impact of climate change
scenarios upon our business, now and in the future.
Kao Data utilises the International Financial Reporting
Standard (IFRS-S2) ‘Climate-related Disclosures’ for
understanding, managing and reporting its climate risk
position. To help Kao Data benchmark its sustainability
performance against the sector we assess our business
against the Global Real Estate Sustainability Benchmark
(GRESB) standard. This standard incorporates a focus on
climate change issues, including in relation to physical
climate risk. We also align our sustainability strategy and
reporting with the Climate Neutral Data Centre Pact
(CNDCP), which outlines the metrics we measure against
for improved climate impact, and the United Nations
Sustainable Development Goals to ensure
a just transition across our value chain.
When assessing climate risks, the
Jupiter assessment uses the ‘Shared
Socioeconomic Pathways (SSPs)’
for its modelling. These are climate
change scenarios of projected
socioeconomic global changes up
to 2100, as de昀椀ned in the IPCC
Sixth Assessment Report on
climate change in 2021.
Operating costs:
Climate events can increase
operating costs through
insurance premiums, energy
costs, carbon pricing, adaptation
capital expenditure, etc.
Physical damage:
Extreme weather events and
gradual climate shifts can cause
signi昀椀cant damage, necessitating
increased maintenance and
repair.
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