Climate risk assessment
Climate change is tangible risk affecting assets and finances of companies. Climate risk management can save you big costs. We provide a comprehensive assessment of major risks to you and help to integrate climate risk management into all levels of your operations. Climate change will increasingly impact businesses and economies both through physical risks, like extreme weather events, and transition risks, such as evolving regulations and shifting market dynamics in response to climate change. Understanding which areas of your business are most at risks is essential for business resilience and long-term success, as well as for meeting emerging regulatory requirements.
What companies need the climate risk assessment?
All large companies (meet at least two of the following at the consolidation group level: 250+ employees, €50+ million net turnover, €25+ million total assets) and all companies listed on regulated markets in the EU (except micro) – a regulatory requirement under the CSRD and EU Taxonomy Regulation.
Companies that want to get a loan from a bank on better terms. Most of leading banks ask for climate risk assessment, several investors too.
Companies whose value chain and field of activity are most affected by climate change (access to input materials, physical locations, consumer expectation, regulations etc).
Benefits of climate risk assessment
Regulatory compliance
Meet the reporting requirements under the CSRD, and EU Taxonomy Regulation with confidence.
Financial resilience
Identify risks early to avoid unexpected costs and disruptions.
Strategic alignment
Align your long-term business strategy with climate resilience goals, increasing your resilience and improving your competitive advantage.
Investor confidence
Demonstrate a proactive approach to managing climate risks, increasing transparency for investors and other financiers (banks, EU funds).
Sustainability leadership
Position your company as a leader in sustainability and responsible business practices.
Four ways we can help you
Leading complete risk assessment process
Conducting physical and transition climate risk assessment for your organization, including operations, assets, portfolio and value chain.
Creating plan for risk adaptation and opportunity spotting
Developing adaptation measures for risk mitigation – propose activities based on market benchmark, industry practice, common approaches. Identifying potential business opportunities in relation to climate change and assess their impacts for your organization.
Complying with standards and regulations
Aligning your risk assessment, management and reporting with relevant frameworks, including sustainability reporting standard (ESRS) of CSRD and disclosure requirements or TCFD climate-risk guidelines.
Training and mentoring your team in running the assessment on your own
Providing capacity building for your organization (trainings), highlighting the value and importance of climate risk assessment (seminars). Consulting you on climate risk assessment process, including on developing methodologies, implementing metrics and setting targets.
Methodology
Our climate risk assessment methodology uses both qualitative and quantitative approaches tailored to your needs, and follows (if relevant):
Requirements and principles of European Sustainability Reporting Standard (ESRS) and EU Taxonomy Regulation
Recognized frameworks such as the recommendations of the Task Force for Climate Related Financial Disclosures (TCFD)
Requirements of specific national or EU funding schemes
Key steps of climate risk assessment
- Risk identification
- Vulnerability assessment
- Likelihood assessment
- Severity analysis
- Resilience analysis
- Financial impact quantification
- Climate adaptation plan
Why you should engage with Sustinere
Save time
Focus on your work, we take care of this. ESRS, EU funding or TCFD requirements are detailed, and your learning curve is high. Yes, the assessment should be updated after some time, but the very first one is more complex. Outsource it. Nothing is missed as we have done these many times before.
Save budget
Summing up the time you would spend on learning, preparing and delivering the assessment, it is probably cheaper to bring in skilled experts. Of course, you and your team have a role to play anyway.
Benefit from our experience
We have done it before too. Many risks tend to repeat. We apply all this in your project to ensure an efficient process and practical outcome.
We have needed expertise
You could also choose some of the one-click digital solutions available globally. But our team is here. We speak your language, you can ask and we explain. Our experts are not generalists. They are MSc`s and PhD`s with specific knowledge of environmental matters. If you add comprehensive knowledge of your industry, we will make a dream team together.