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All companies face risk from climate change, and they must understand the financial impact of these risks to their business and implement strategies to mitigate them.
By investing in and implementing the right governance, risk management and strategic planning processes, companies become more resilient to these risks and potentially take advantage of the opportunities posed. Through effective reporting, they will be in a strong position to make better decisions for their future business, as well as fully informing those stakeholders who have an interest in their activities.
Increasingly, investors and governments are expecting companies to disclose information on climate risk, following formal frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD). The Task Force on Climate-related Financial Disclosures (TCFD), officially disbanded in late 2023, as the IFRS Foundation took over responsibility for monitoring progress on companies’ climate-related disclosures. Get an Introduction to the International Sustainability Standards Board (ISSB).
Anthesis’ Climate Risk Services
Through our climate risk solutions, we support companies and asset managers to gain insight into their climate risks and opportunities. Our climate risk consultants and strategists can assist you from undertaking a high-level analysis of risk and disclosure through to the completion of a more in-depth climate risk and opportunity profile to allow your organisation to build resilience. For each of these services, we start by undertaking a review of your current climate strategy and disclosures, such as CDP, CDSB and SASB, to allow you to understand where you are and where you need to focus.
Our Approach to Climate Risk
Climate Risk Screening – We assess the risks and opportunities that climate change poses to each area of your organisation and define those that will have the greatest impact.
Scenario Analysis – We model your organisation’s climate-related risks and opportunities and the impact on financial results under different climate scenarios to give you clear, quantitative insight into areas of concern.
Climate Risk Strategy – We develop a strategy that defines a forward path for setting and meeting targets and prepares you for disclosure to help minimise risk and maximise value.
Climate Mitigation & Adaptation – We support you to identify and measure the performance of the mitigation and adaptation actions required to reduce climate risk exposure and maximise the opportunities presented in a net zero transition.
Case Studies
Why act now on climate risk?
Taking action on climate risk can also help companies to take advantage of the economic benefits and financial incentives associated with carbon reduction and improve their sustainability credentials.
Transition Risk
As companies commit to transitioning to low carbon and net zero futures, they must understand the implications to their business. Operations that are exposed to the risks of energy price increases or carbon taxation are at risk of increased Opex or even stranded assets.
Physical impacts
Increasingly severe and frequent extreme weather events, including record wildfires, temperatures, droughts, and floods, demonstrate that climate change risks are real today. These events are leading to significant financial and economic losses and increased pressure on company assets and supply chains.
Mandatory reporting is here
Governments are increasingly requiring companies to report on and disclose information relating to their climate risks. Understanding your climate risks now will help you to prepare for this impending regulatory requirement.
Investor expectations
Investors now consider climate change a material issue in many industries and expect directors to consider the potential impacts on company performance. Many of those investors are now calling on companies and asset managers to report on physical climate change risks and how they will transition to a low-carbon economy. This is now a mandatory requirement for investors signed up to the UN Principles for Responsible Investment (UN PRI).
Our Climate Risk Advisory Experts
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