Climate Risk Services helps organisations to translate the topic of climate change into a manageable issue. Climate change can seem very abstract and it can be challenging to assess how it will affect you. This makes it easy to dismiss climate change as relevant for your company. Our goal is to provide you with the tools that will allow you to identify climate change as a value driver of your organisation.
Each organisation has different needs. If you do not know where to start, we recommend that you engage us for an interactive workshop that will cover the basics. This will provide you with an excellent starting point to break down climate change into manageable bits.
We work on four levels: governance, strategy, risk management, and data collection and reporting. We use the recommendations of the Task Force Climate-related Financial Disclosures (TCFD) as guidance.
There is no required sequence of engagement: some companies start with data collection and reporting, other companies want to perform an assessment of physical climate risk of a particular asset, while others want to have a board-level training on climate change. Over time, the TCFD recommends that your company reports on all four levels.
Investors and regulators want to know how climate change will be incorporated in the board’s oversight. This requires that each company designs processes by which the board and/or board committees (e.g., audit, risk, or other committees) are informed about climate-related issues. Furthermore, the companies’ board must monitor and oversee progress against goals and targets for addressing climate-related issues. Are your goals aligned with the organisational structure?
Climate change policy papers
Organisational design and alignment
KPI specification and monitoring
Climate change presents risks and opportunities to your company over the short, medium, and long term. Which ones are relevant taking into consideration the useful life of the organization’s assets or infrastructure and the fact that climate-related issues can manifest themselves over the medium and longer terms. Areas that can be impacted include the company’s own products and services, but also upstream supply chains or downstream market risks or opportunities. What is the impact on your company’s operating costs, revenues, capital expenditures and capital allocation?
Valuing risks and opportunities (opex and capex)
| Risk Management|
Often there is a disconnect between a company’s overall risk management and the risks caused by climate change. These risks can be physical, regulatory, technical or societal in nature. A risk management system should have a process how to determine the relative significance of climate-related risks in relation to other risks. Once risks are identified, can you mitigate, transfer, accept, or control those risks?
Satellite-generated climate data
Early warning systems
|Data collection and reporting|
Key metrics are needed to measure and manage climate-related risks and opportunities. Depending on the company, climate change often goes beyond CO2 emissions alone; organizations should consider including metrics on climate-related risks associated with water, energy, land use, and waste management where relevant and applicable. Which metrics can form the basis for setting targets?
Greenhouse gas emissions assessment
Reporting formats (CDP)