Australia Top Performer in Global Resilience Ratings

According to an FM Global study analysing the economic, supply chain, and climatic risks of 130 countries, Australia is a robust choice for firms trying to grow into new markets.

Australia is ranked 20th in terms of climate risk quality, indicating that it is more capable of addressing climate-related risk than many other countries.

The Resilience Index from FM Global is an online tool for multinational corporations aiming to enter new markets. It grades and ranks each country based on climate, supply chain parameters, and risk quality.

With a score of 68.1, Australia is ranked 19th for economic aspects, 16th for risk quality, and 24th for supply chain with a score of 80.2.

For the first time, two new metrics have been included in this year's index. Climate risk quality, which evaluates each country's construction codes, enforcement, and facility modifications to prepare for climate events, and climate risk exposure, which reflects extreme weather events. Unsurprisingly, Australia ranks 107th in terms of climate risk exposure. However, in terms of climate risk quality, we are ranked 20th, indicating our ability to address climate-related threats.

According to an FM Global release, the two filters allow index users to focus solely on climate risk – and ESG-related indicators inside the Resilience Index – to better understand inherent country risks and uncover possibilities through these lenses.

"Not only are many firms now more willing to address climate change and limit risk, but investors and regulators are increasingly demanding transparency," says Greg Duncan, FM Global's Australia operations vice president and client service manager.

With a score of 100 and a top position, Denmark is the most favourable place overall. The highest economic ranking goes to Luxembourg, and the highest supply chain ranking goes to Singapore.

Two additional indicators have been adopted to account for the pandemic: health spending and supply chain timeliness. Australia is ranked 16th in terms of health expenditure (48.2) and 23rd in terms of supply chain timeliness (81.7).

"Building resilience to achieve long-term sustainable outcomes is vital to company performance, whether dealing with dangers posed by a changing climate, responding to war, navigating a pandemic, or satisfying ESG standards," Duncan says.

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