Key points
- NSW state government agencies will be affected by climate change in different ways, with impacts to people and culture, natural and built environments, industries and the economy, policy and planning, as well as overall agency objectives.
- The NSW Government plays an important role in ensuring climate change risks are understood, integrated into decision-making, and acted upon.
- The NSW Climate Change Adaptation Strategy provides a framework that will strengthen and expand NSW Government action to adapt now and over the long term. Strategy action 14 requires all NSW Government agencies to identify their own climate change risks in alignment with the Climate Risk Ready NSW Guide and climate change projections.
- The NSW Climate Change Adaptation Action Plan 2025-2029 identifies 46 actions led by 8 agencies across the NSW Government to progress adaptation over the next 5 years.
- The NSW Government has developed a range of resources, tools and information to help state government agencies address the economic and social impacts of climate risks. These tools are aligned with other relevant NSW Government policies and toolkits. Among these is the Climate Risk Ready NSW Guide, which provides a 4-step process and training to help agencies conduct climate risk assessments and adapt to climate change impacts.
Why state government agencies need to adapt
NSW state government agencies need to adapt to the impact of climate change to support NSW’s people, environments and economy.
State government agencies are required to consider climate risks in their planning, operations and management of assets. These requirements are set out in NSW Government policies, including:
- NSW Treasury’s Internal Audit and Risk Management Policy for the NSW Government sector
- Risk Management Toolkit
- Asset Management Policy for the NSW Public Sector.
State government agencies play a vital role in planning and managing a range of critical infrastructure and essential services for the people of NSW. Because of this, state government agencies need to understand, plan for and build resilience to the impacts that climate change will have on public infrastructure and services.
Every NSW state government agency faces different risks and opportunities from the impacts of climate change. For example:
- state government services such as electricity and public transport may be disrupted by power outages during extreme heatwave events
- existing urban and environmental planning processes and principles may need to be changed to accommodate climate risks such as increased heatwaves
- new policies and procedures may need to be developed to prepare for and respond to the increased risk of extreme weather events, such as evacuation procedures and policies.
The NSW Government has developed the Climate Risk Ready NSW Guide to help state government agencies and staff manage risks and opportunities associated with climate change. The guide builds on national and international best-practice climate change risk assessment and adaptation processes.
How state governments can adapt
NSW Government agencies can use the Climate Risk Ready NSW Guide and supporting resources to understand, plan for and respond to climate-related risks and opportunities.
The guide brings together practical guidance, tools and case studies, along with a clear process to help state government agencies identify and manage climate-related risks and opportunities across their public assets, services and objectives. It helps agencies to:
- protect core functions by understanding how climate-related drivers and risks may affect their core objectives and operations
- prioritise responses by identifying areas for further investigation or investment
- enhance services, by increasing their understanding and capacity by building capability to respond to climate risks and opportunities
- strengthen integration and oversight by embedding climate considerations into existing frameworks and processes
- build resilience by informing decisions about risk treatments and controls over time
The Climate Risk Ready NSW Guide outlines an iterative 4-step process to support agencies to manage climate-related risks and opportunities:
- Establish the foundation
- Identify, analyse and evaluate climate-related drivers, risks and opportunities
- Develop and implement actions to respond to climate-related risks and opportunities
- Monitor, evaluate, report and improve actions.
The guide shows how to apply these steps in practice over time.
It includes templates, tools and supporting resources.
Define what matters to your organisation based on your organisation's goals, mandates, assets and services. Review what actions your organisation has already taken to manage climate-related risks and opportunities, its ambition and risk tolerance. Identify key stakeholders and decision makers.
Understand the ways climate-related events can affect your organisation, positively and negatively. Use available data and scenarios to explore what could happen and help you focus on managing the most significant risks and opportunities.
Identify actions to reduce risks or enable opportunities associated with climate change and document them.
Identify appropriate indicators and set baseline and targets to track your progress. Embed monitoring activities into your organisation's existing systems and adjust your approach as climate conditions and priorities evolve.
This is an ongoing and iterative process that aligns with existing risk management functions and responsibilities. Regular monitoring and review supports continuous improvement and helps agencies respond to new information and changing conditions.
Learn more
Download the Climate Risk Ready NSW Guide
Download a free copy of the Climate Risk Ready NSW Guide (PDF - 4.86MB)
Appendix B Health Check Tool (XLSX - 342.75KB)
Appendix C Climate Risk Assessment Tool (XLSX - 154.02KB)
Related information
National climate resilience and adaptation strategy
NSW Sustainability Bond Programme – NSW Government
Internal Audit and Risk Management Policy for the NSW Government sector – NSW Treasury
Risk Management Toolkit – NSW Treasury
Asset Management Policy – NSW Treasury
Risk Maturity Assessment Tool – NSW Treasury
ISO 31000:2018 Risk management — Guidelines – The International Organization for Standardization
Case studies
The case study outlines research led by the University of Tasmania with NSW Government agencies assessing air quality improvements in the Port Macquarie public library during smoke from the 2019–2020 fires. It compared central air conditioning with portable HEPA cleaners to evaluate the library’s potential to operate as a community clean‑air shelter.
The Highlands Homegrown Economy project brought together 50 local leaders to map 20 catalytic initiatives and collaboration opportunities. By surfacing hidden projects and strengthening cross-sector trust, the process demonstrated how communities can design regenerative economies that create resilience, jobs, and shared value in a changing climate.
Santos Organics is redefining what a retail food business can be. As a not-for-profit organic food retailer, community hub and incubator for First Nations enterprises, Santos Organics strengthens local food security, supports local food producers, and activates rapid, community-led resilience during climate shocks.