A major innovative element of the TCFD recommendations is scenario-building to assess the risks and opportunities from the shift to a low-carbon economy, and the risks from physical impacts of climate change. Examples include the impact of changing policies and consumer markets on existing and future product portfolios, 'stranded assets' in fossil fuels, and crop and infrastructure damage.
Risk evaluation includes forecasting business resilience in the short, medium, and long terms. Moreover, disclosing the processes for identifying, assessing and managing climate-related risks is recommended, along with their integration into a risk management framework.
Our assessment tool categorises and plots the major risk 'hotspots' through operations and along the supply chain, identifying areas for attention. This also highlights solutions for mitigating these risks and longer term climate adaptation programmes.
