Climate risks, opportunities and reporting
Investors, customers, and regulators increasingly demand information on the impact of climate change on businesses. Climate-related risks and opportunities are risks related to the physical impacts of climate change like extreme weather events as well as opportunities related to the transition to a low carbon economy We can help you understand, manage and report on your climate-related risks and opportunities, turning compliance into a competitive advantage.
Going beyond compliance
Whether it is reporting in accordance with the EU’s CSRD (Corporate Sustainability Reporting Directive) using the ESRS (European Sustainability Reporting Standards), the ISSB (International Sustainability Standards Board), the US SEC (Securities and Exchange Commission) or other localised disclosure regulations aligned to TCFD (Task Force on Climate-related Financial Disclosures), reporting on climate risks (both transition and physical) and opportunities is becoming a fundamental part of business disclosures. Companies need to consider climate-related issues across governance; strategy; impact; risk and opportunity management; as well as metrics and targets.
An assessment of your climate risks and opportunities is, however, more than a compliance activity. It is about looking ahead and determining how resilient your business is to climate-related risks. It is about identifying the opportunities to adapt your business model and become part of the solution.
EU regulation reiterates the need for financial institutions and businesses alike to better understand the synergy between futureproofing their organisation and taking climate action. Uncovering potential risk and opportunity blind spots helps businesses understand how they can remain relevant in a Net Zero world.
The benefits
Businesses across Europe had the highest levels of reporting on climate-related metrics globally (TCFD Status Report, 2023). This level of disclosure reflects the growing mandatory, national and EU-wide disclosure requirements such as CSRD and Switzerland’s Ordinance on the Reporting of Climate Matters (ORCM) from 2025.
Understanding the potential impact climate change has on your business, and aligning with TCFD and ESRS E1-9 brings several additional benefits, including the opportunity to:
- Test your business’s resilience across a range of hypothetical climate 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 to drive competitive advantage.
- Find potential blind spots and uncover opportunities for growth in a fast-changing environment.
- Develop a feasible, sustainable and logical Net Zero transition plan.
- Demonstrate to auditors, investors and lenders that your company’s climate-related risks have been appropriately assessed and that reporting is compliant with ESRS E1-9 of mandatory EU CSRD regulations, potentially avoiding fines and other legal repercussions of non-compliance.
- Anticipate 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.
Catch up on our latest webinar on how to assess your climate risks and opportunities.
View the webinar hereHow 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.
Disclosure support
We ensure your disclosures are accurate and robust no matter the depth of the analysis to help you comply with the ever-changing reporting landscape.
Why the Carbon Trust
With twenty years 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 with global reach and significant experience in providing TCFD support to a wide range of corporates including Diageo, Vodafone, Dr. Martens, and the European Investment Bank, and more recently support with CSRD gap analyses for companies, we provide a truly systemic and holistic view of the low carbon transition for your business.
This customised support helps you build the business 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 transition towards a low-carbon economy?
- 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.
Nature is our playground and the better we understand our impact on it and its impact on us, the better we can create value for both. Working with the Carbon Trust on better understanding our climate risks and opportunities has increased our understanding of the action required from us.
