Environmental Risks and Opportunities
Implication and response
Risk Description
Regulatory risk Legislation relating to climate change and The legislation to which RELX must comply would not change. The current
energy is slowly progressing in many of
the territories in which we operate.
Sustainable paper requirements such as
the US Lacey Act or European Due
Diligence.
Physical risks Flooding, rising sea levels, and extreme
weather events are already impacting
societies and businesses.
Changes in temperature impact our
heating and cooling requirements.
Reputation Customers are increasingly aware of
environmental issues and as a provider of adopt new approaches to tackle the issue.
leading environmental information it is
incumbent on us to show good practice.
Cost Cost savings can result from energy
efficiency measures and efficient use of
resources.
Scenario 1 - business as usual
Short term
legislation and policy would continue to result in incremental improvements (for
example in renewable generation mix, energy efficiency, etc.). This may results in
gradual increases in operating costs (such as the price of electricity, price of
vehicle fuel, etc.), though this would be immaterial to RELX due to the low
exposure to energy costs. Ongoing energy efficiency measures would further
limit the impact of increased costs.
The existing environmental management system will identify the legal
requirements and ensure compliance.
Through its products and services, RELX provides information and guidance on
climate legislation or carbon tax regimes. The growth in this area may be limited
if no new legislation is introduced.
Legal requirements associated with importing, exporting, transporting or selling
paper products will continue. No new requirements will be introduced and
printed products will continue to be scoped out of the European Illegal Timber
Law.
Extreme weather events could gradually start increasing in severity and
frequency. This could cause localised distruption to our supply chains and
distribution networks.
The impact of rising temperatures will not be significant in the short term,
though there could be an increase to peaks of hot and cold weather in the
seasons. This could prevent employees from commuting to work, but this would
have a negligible impact due to the availability of remote working for RELX
employees.
RELX can demonstrate a history of action on climate change and continues to
RELX will continue to target and achieve energy reductions across its operations, Fossil fuels will continue to play a signficant role in the generation mix of
and to engage with suppliers on the issues through it's Socially Responsible
Suppliers programme.
Long term
The move away from fossil fuel to renewable energy is likely to bring energy price Additional legal requirments in many countries aimed at controlling carbon
stability in the longer term.
As new energy generation or management systems are developed, there will be a
need for RELX products and services to meet the information demands of
customers.
With no new legal requirements, there will be limtied risk of non compliance.
Extreme weather events are likely to increase in severity and frequency with
higher levels of warming. This could lead to some difficulties in distributing
printed products and might prevent exhibitors and vistors from travelling to
events.
As weather events cause more damage and distruption, there will be an
increased need to accurately assess and price the risk of these events. This could
increase the market for our products serving this part of the insurance market.
Warmer average temperatures will require additional cooling capacity in our
offices. This will increase the energy costs of running our offices. Higher
temperatures could adversly impact infrastructure (such as transport, power
distribution, ICT/ data transmission).
As the impacts of climate change become more apparent, public sentiment may
favour those organisations that took action to limit the impacts of climate
change.
electricity, which brings supply security and price issues. With a larger degree of
warming, the energy performance of buildings will be key to reducing running
costs (for example in the energy required for additional cooling).
Scenario 2 - 2 degrees
Short term
emissions. These could be introduced in a short time frame and pose a risk of
non-compliance.
Ambitious carbon pricing may increase operating costs, though the impact of this
will be limited on RELX due to low exposure to energy and associated costs.
As carbon pricing expands, there will be a need to monitor and understand the
carbon markets. Our ICIS products in this area could benefit from this.
In order to achieve the more challenging targets, countries will likely introduce
new policies and laws to protect trees and forests. Similar to current legislation,
this could impose restrictions on the wider value chain of paper products.
Increased monitoring/ tracking and certification requirements could lead to
increases in price of paper products. The impact on RELX will be low due to the
decreasing share of revenue generated by printed products, as more product
offerings move online.
Extreme weather events could gradually start increasing in severity and
frequency. This could cause localised distruption to our supply chains and
distribution networks.
The impact of rising temperatures will not be significant in the short term,
though there could be an increase to peaks of hot and cold weather in the
seasons. This could prevent employees from commuting to work, but this would
have a negligible impact due to the availability of remote working for RELX
employees.
Business will play an important role in achieving the necessary carbon reductions
before 2050. While the impacts of climate change will be less severe with a
smaller degree of warming, there will still be impacts which could focus attention
on the climate-related commitments and actions of companies.
RELX will continue to target and achieve energy reductions across its operations, RELX will continue to target and achieve energy reductions across its operations, RELX will continue to target and achieve energy reductions across its operations, With a large proportion of electricity coming from renewables, there should be
and to engage with suppliers on the issues through it's Socially Responsible
Suppliers programme.
Scenario 3 - 1.5 degrees
Long term Short term Long term
The move to renewable generation will be rapid, requiring support for startups The required reductions in carbon emissions are significant, with a large share of Carbon sequestration is an essential element of a 1.5 degree future, with
and other green tech companies. Through it's tradeshows and other events, Reed the reductions made in the 2020s. There will be a need for new challenging negative emissions required post 2050. This could lead to the development of
Exhibitions can continue to support businesses in this critical stage. The focus of legislation and policy instruments to encourage business and other sectors to new industry sectors and new products and services offered by RELX to support
trade shows could move in the longer term, from areas such as energy efficiency rapidly achieve the reductions. them.
to renewable generation or self-sufficiency technology.
Business will play an important role in developing the new sustainable and
Following COP26, a new international carbon market will be established to responsible policies. RELX can support the introduction of such policy and share
facilitate investment in low carbon technology. lessons from its experiences of achieving carbon reductions by continuing to
engage responsibly with policy makers on the issues.
The new legislation will be introduced in various countries, in a short time frame.
RELX customers will need information and guidance on the new requirements
through RELX products and services. The rapidly evolving legislation could pose a
risk of noncompliance for RELX as different reqiurements are introduced in
different territories. The expansion of the certified environmental management
system will ensure the risk of noncompliance remains low.
There will be need for rapid changes across industries, requiring new
technologies and partnerships which can be facilitated through the trade shows
and events organised by Reed Exhibitions.
More stringent legal requirements on the paper supply chain. The risk is low due Nature-based solutions such as the preservation and reseeding of forests will be A substantial increase in forested land could lead to a larger supply of timber for
to our sustainable paper policy which commits us to purchasing paeprs from an important tool for absorbing carbon from the atmosphere. There is likely to the paper supply chain. However, this would be offset by larger areas of forest
known and responsilbe sources. be an increase in demand for carbon offsets associated with land use, causing an protected from logging and harvesting. The paper supply chain will need to adapt
increase in their price. A substantial increase in price may lead to some to accepted smaller quantities of wood (such as waste wood from forest
landowners switching from timber supply to forest preservation, which would management processes) from larger catchment areas. This could negatively
reduce the raw material required from the paper supply chain. RELX has moved impact the controls on forest sources for certified papers.
quickly from providing printed products to digital product offerings, so this is
unlikely to cause signficant distruption for RELX.
We continue to assess the risk to our businesses and improve business continuity Extreme weather events could gradually start increasing in severity and Temperature increase and therefore instances of severe weather would be
plans. We maintain robust insurance programmes, which cover flooding and frequency. This could cause localised distruption to our supply chains and better controlled under this scenario. There would be less distruption to supply
other extreme weather exposure. Through our Socially Responsible Suppliers distribution networks. chain and distribution networks in the long term as the worst of climate change
network, we work with suppliers to address potential risks. Our environmental is avoided.
information helps inform decision makers on this issue, identifying good practice
on adaptation.
Warmer average temperatures will require additional cooling capacity in our The impact of rising temperatures will not be significant in the short term, Temperature increases will be limited, supported by very strict controls on
offices. This will increase the energy costs of running our offices. Higher though there could be an increase to peaks of hot and cold weather in the building standards, which would result in a low impact on RELX.
temperatures could adversly impact infrastructure (such as transport, power seasons. This could prevent employees from commuting to work, but this would
distribution, ICT/ data transmission). have a negligible impact due to the availability of remote working for RELX
employees.
Businesses will need to develop new innovative approached to demonstrate Net zero will become a standard target for responsible businesses, with many Responsible businesses will move from a position of net zero to net negative,
their leadership on sustainability. Many of the traditional approaches (energy bringing their target dates closer to 2030. before 2050, to demonstrate leadership. Similar to renewable energy today,
efficiency, reducing business travel) will become standard across all businesses. businesses may seek new on-site capture and storage technology or
New appraoches to net zero will be more commonplace. sequestration arrangements similar to PPAs today for renweables.
and to engage with suppliers on the issues through it's Socially Responsible and to engage with suppliers on the issues through it's Socially Responsible more stability in the energy price. There will, however, be more demand for the
Suppliers programme. Suppliers programme. electricity with the electricfication of vehicles which could mean higher electricty
prices. RELX exposure to energy cost is low.