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Climate risk analysis. Identification of opportunities and risks.

Companies can benefit in many ways from a comprehensive assessment of climate-related risks and opportunities. Various legal regulations such as the CSRD and the EU Taxonomy already require companies to disclose their climate risks and opportunities. In addition, the implementation of a climate risk and opportunity analysis can have a strategic benefit for the company and make a significant contribution to increasing the climate risk and contribute to increasing climate resilience, ensuring long-term success. We support you in identifying and assessing climate-related risks and opportunities, show you how to integrate them into your risk management and help you with reporting in accordance with all common reporting frameworks.

Physical scenario analysis. How vulnerable is your company?

A climate risk analysis is often required to fulfill reporting obligations under the EU Taxonomy and the CSRD, but also in other reporting formats (e.g. CDP, TCFD, 20-F). However, the requirements of the individual regulatory frameworks can differ greatly. We are aware of these differences and know what is important. We help you to identify physical climate risks and at the same time recognize climate-related opportunities.

Together with the renowned provider meteoblue we perform a physical climate risk analysis according to the common reporting frameworks and the frameworks in your company. We use the latest IPCC data and can therefore offer an analysis for the four common RCP and SSP scenarios (RCP2.6/SSP1-2.6, RCP4.5/SSP2-4.5, RCP6.0/SSP3-7.0 and RCP8.5/SSP5-8.5). Following the physical climate risk analysis, we offer you an interpretation of the results by our experts with sound meteorological and climate science expertise. In joint workshops, we look at particularly vulnerable company locations in order to determine the risk and take possible countermeasures. In addition to the risks, we also look at the opportunities that may arise for your company as a result of climate-related changes.

What are physical climate risks?

Physical climate risks are those risks that can result from physical climate changes such as increasing heat and drought, water shortages, heavy rainfall or rising sea levels. These are divided into chronic and acute climate risks. While acute risks only occur for a short time (example: hail), chronic risks are permanent and increase as climate change progresses (example: rise in average temperatures).

In summary, physical climate changes are "natural hazards" that are increasing in frequency and severity due to climate change. These changes not only pose a potential threat to a company's assets, but can also have an impact on the entire value chain - from supply bottlenecks to changes in demand behavior - and in the worst case even threaten the safety and lives of employees. Climate-related changes can therefore pose a serious risk to business activities.

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Transitory scenario analysis. Adapted to every reporting model.

In addition to the EU taxonomy, which so far only requires a physical climate risk analysis, there are other reporting frameworks, first and foremost the CSRD, but also the CDP (fmr. Carbon Disclosure Project), the Task Force on Climate Related Financial Disclosures (TCFD) or 20-F which also require a transitory climate risk analysis to be carried out. Thanks to our many years of experience, we know all the important criteria and can provide you with support, identify transition risks and opportunities within the company and in the value chain.

We carry out transitory climate risk analyses according to the requirements of the reporting format relevant to you. Based on company-specific values, we calculate and develop various risk scenarios taking into account various transitory factors, such as the development of the CO2 price. We also identify potential opportunities associated with the transition to a 1.5 degree world. These could include the development of new sustainable products and services, greater resilience and expansion into new markets.

What are transitory climate risks?

Transitory climate risks and opportunities are those that arise from a gradual decarbonization of the economy. These include, for example, changes relating to political frameworks, possible tightening of emissions trading, stricter efficiency regulations, changes in sales markets or the promotion of sustainable technologies. A good understanding of transitory climate risks and opportunities can make a significant contribution to future-proofing your company on the path to a net-zero economy.

sustainable nachhaltigkeitsberatung climate action klimarisikoanalyse transitorisch

sustainable nachhaltigkeitsberatung climate action klimarisikoanalyse risikomanagement

Adapting and expanding existing governance structures enables cross-functional collaboration between Corporate Risk and Corporate Sustainability. Processes, key figures and organizational structures are designed in such a way that they are aligned with each other and synergies between the various risk analyses and reports can be optimally utilized.

Integrating climate risks and opportunities into your risk management.

Integrating climate-related risks and opportunities into your risk management system prevents risks from being overlooked and enables you to make your value chain and business model climate-resilient. We support you in successfully implementing this integration and reducing the annual reporting effort.

Contact us now and receive a climate risk analysis.

Your contact person

Markus Goetz

Director

+49 (160) 82 13 61 4

E markus.goetz@sustainable.de