Climate risks, opportunities and reporting
Investors, customers, and regulators increasingly demand information on the impact of climate change on businesses. We can help you understand, manage and report climate-related risks and opportunities, turning compliance into a competitive advantage.
Going beyond compliance
Whether it’s the ISSB (International Sustainability Standards Board), the EU’s CSRD (Corporate Sustainability Reporting Directive), the US SEC (Securities and Exchange Commission) or other localised disclosure regulations aligned to TCFD, reporting on climate risks (both transition and physical) and emissions is becoming a fundamental part of business disclosures. Companies need to consider climate-related issues in four areas: governance, strategy, risk management, metrics and targets.
Although navigating these reporting requirements can be challenging , an assessment of your climate risks and opportunities is more than a compliance activity. It is about looking ahead and determining how resilient your business is to climate-related impacts. It is about identifying the opportunities to adapt your business model and become part of the solution.
Our method of assessing climate-related issues uncovers potential risk and opportunity blind spots and helps businesses understand how they can remain relevant in a Net Zero world.
The benefits
Understanding the impact of climate change on your business, and aligning with TCFD, brings a number of benefits, including the opportunity to:
- Test your business’s resilience across a range of hypothetical scenarios, providing the tools you need to make informed decisions in a rapidly changing world.
- Align your business strategy to emerging market trends and regulations, and drive competitive advantage.
- Identify potential blind spots, and uncover and leverage opportunities for growth in a fast-changing environment.
- Develop a feasible, sustainable and logical Net Zero transition plan.
- Embed sustainability in your corporate culture.
- Demonstrate to investors and lenders through TCFD alignment that your company’s climate-related risks have been appropriately assessed, potentially leading to easier or better access to capital.
- Understand portfolio risk in financial institutions, design an investment strategy that avoids climate risks, and improve due diligence processes to screen out, or accurately price, climate-risky investments.
How we can help
Whether you want to align with the latest reporting requirements or build a business case for climate action, our experts help you understand your climate risks and opportunities in the following areas:
Prioritisation of your climate-related risks and opportunities
We bring deep knowledge of global value chains to help you identify all entry points for risks and opportunities and give pragmatic advice on the hotspots.
In-depth financial impact modelling
We use scenario analysis to model the financial impacts of climate change and Net Zero on your business, helping you build a strong financial business case for creating resilience to risks and exploring decarbonisation opportunities.
Climate-related risk and opportunity management and strategy
Once we uncover the most relevant risks and opportunities for your business, we can support you in mitigating those risks and strategise ways of making the most of the opportunities. This helps you inform decisions alongside your executive management, C-suite and business units.
Why the Carbon Trust
With two decades of experience in carbon business consulting, we understand the sustainability reporting landscape as well as the dynamics of business model evolution in response to climate change. As an organisation that works with policymakers, businesses, financiers and technologies of the future, we can provide a truly systemic and holistic view of the low carbon transition for your business.
This customised support helps you build the internal case for climate action, protecting and growing business value as we help you answer key questions:
- Where do the biggest risks and opportunities lie?
- What technologies could help?
- Which products and services are (in)compatible with a Net Zero transition?
- Who should be engaged in the transition?
- What assets are most exposed to physical risks?
Thanks to our partnership with the Carbon Trust, we are building a strong foundation of knowledge about our mutual interaction with the climate. This has empowered us to set science-based targets and make decisions which support the future of our planet.
