Climate Risks and Opportunities

El Puerto de Liverpool is aware of the climate risks that may affect our activities. Our aim is to address these preventively through adaptation and mitigation plans according to internationally accepted methodologies like the recommendations of the TCFD and IFRS S1 and S2 sustainability standards.

Physical risks

Category Risk Impact Risk rating
RCP 4.5 RCP 8.5
2030 2050 2030 2050
Acute Increase in intensity and frequency of tropical storms
  • Impact on product arrival (supply chain) at stores and households
  • Shutdown or interruption of store or distribution center operations
  • Inventory damage losses
  • Difficulty for customers to get to stores
  • Higher cost of insurance
Uncertain Uncertain Moderate Moderate
Increase in the frequency, intensity and duration of extreme precipitation events Moderate Moderate Moderate High
Increase in the frequency and intensity of river floods High High Moderate Moderate
Chronic Rising sea levels and coastal flooding
  • Possible impact on distribution routes in coastal areas
  • Possible partial loss of property values in those areas
  • Development of new infrastructure less viable
Low Low Low Low
Chronic Increase in frequency, intensity and duration of droughts
  • Low availability of raw materials
  • Possible increase in product prices and impact on availability
  • Impact on coverage of department stores if population emigrates due to lack of water
  • Impact on operations and increase in utility bills because of higher water stress
Moderate High Moderate High

Transition risks

Category Risk Impact Risk rating
RCP 4.5 RCP 8.5
2030 2050 2030 2050
Political New carbon pricing mechanisms such as carbon taxes or emission trading system
  • Increase in operating costs due to increase in national carbon tax, subnational taxes and introduction of a national emission trading system
Low Low High Low
Political Execution of circular economy policies
  • Increase in the price of plastic containers due to changes in supplier raw materials
  • Creation of public policies that involve consumers in economic requirements or regulations on use of plastic containers
Moderate Low High Moderate
Market Reduced demand for products due to higher prices and production costs Increase in value chain production costs due to:
  • Expansion and increase in carbon tax
  • Higher cost of fuel in the short and medium term
  • Development of policies aimed at reducing emissions in the building industry
Moderate Moderate High Moderate
Technology Use of technologies to improve energy efficiency and resource consumption in sustainable buildings
  • Increasing incorporation of devices that use less energy
  • Reduction of operating costs
  • Increased creation of energy efficiency standards in equipment and building codes
  • Short-term investment opportunities in installation of efficient equipment
  • Reduced operating costs in the medium and long term due to energy efficiency savings
Moderate Low High Moderate
Technology Technological advances in transportation and distribution toward efficient, low-carbon, non-polluting vehicles
  • Possibility of replacing company’s internal combustion vehicle fleet with hybrid and/or electric vehicles, which reduce emissions
  • Gradual reduction in acquisition cost of hybrid and/or electric vehicles as technology becomes standardized
Moderate Low High Moderate