4 minute read
Why Early Implementation of CROMP Delivers a Competitive Edge
In Australia’s rapidly evolving regulatory landscape, climate transition considerations have become a central focus for government and industry. The government’s Climate Risk and Opportunity Management Plan (CROMP) 2024–2026 highlights the need to embed climate risks and opportunities into business strategies. Yet, beyond mere compliance, early adoption of CROMP offers a real chance to enhance resilience, reputation, and market competitiveness.
CROMP is designed to guide public sector entities—and, indirectly, their private sector partners—in systematically addressing climate challenges. It spotlights both physical risks (extreme weather events, rising temperatures, and sea-level changes) and transition risks (regulatory shifts, evolving consumer preferences, and technological innovations). Taken together, these factors are reshaping markets and procurement processes, especially where government contracts are involved.
Why Act Early?
Forward-thinking businesses see CROMP as more than just a compliance step: it’s a roadmap to unlock innovation, secure stronger stakeholder trust, and future-proof operations against climate volatility.
- Competitive Procurement Advantage: Government tenders increasingly include climate-resilience criteria, giving early adopters a distinct edge.
- Stronger Risk Management: By proactively tracking and mitigating climate risks, you protect supply chains, bolster asset resilience, and position yourself for smoother audits or reporting requirements.
- Opportunity for Growth: Embracing clean technologies or sustainable product lines can open new revenue streams and attract ESG-focused investors
Preferential Procurement Edge
Featuring climate criteria in government and corporate tenders is becoming common. Early adoption of CROMP-readiness can enhance compliance and potentially secure preferred supplier status, as entities seek forward-thinking suppliers on climate risk.
Future-proofing Against Regulatory Changes
Climate regulations can change rapidly. Incorporating climate considerations into your business strategy now ensures a smoother transition if mandatory reporting becomes more stringent or carbon pricing structures are introduced.
By voluntarily integrating climate considerations into your risk frameworks using well-tested procedures for scenario analysis, means that your daily operations are less likely to be affected by sudden legislative changes.
Seizing Climate Opportunities
CROMP also highlights opportunities for innovation. Embracing renewable energy, sustainable products, or circular economy models can attract new customers, tap into ESG-focused funding, and bolster brand reputation.
- Spark Innovation: From renewable energy solutions to climate-resilient infrastructure, climate-driven innovation can open up new revenue streams.
- Attract Funding: ESG-focused investors and lenders often favour businesses with robust sustainability credentials, improving access to capital.
- Boost Brand Equity: A demonstrated commitment to sustainability and responsible business can greatly enhance consumer trust and stakeholder confidence.
Rather than treating CROMP as another box to tick, view it as a catalyst for smarter risk management and sustainable growth, capture market share, and fortify your business against climate disruption. With careful integration into your existing frameworks, you’ll be positioned to safeguard assets, meet stakeholder expectations, capture new opportunities and stand out in the tender process.
To understand how your department can ensure a smooth and manageable implementation of the government’s Climate Risk and Opportunity Management Plan (CROMP) with the industry experts at Battleground.
