Climate Risk

Supporting businesses to understand and mitigate against climate risk
supporting businesses to understand and mitigate against climate risk

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).

It was a pleasure to work with Anthesis on a pilot scenario analysis exercise to help us get a richer understanding on climate risk. The team assembled to work on our project had a deep understanding of the topic, excellent facilitation skills, and a real knack of making a complex issue simple and accessible for a range of people. They work in a very engaging manner and recognise the skills and expertise that a breadth of people within an organisation can bring. This has helped us with our goal to embed this new view and activity into the business rather than build a reliance on outsourced support.

Group Director ESG & Sustainability, Currys PLC


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 coming

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 to be 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 Approach to Climate Risk

Through our climate risk services, we support companies and asset managers to gain insight into their climate risks and opportunities. We 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.

We support companies with:

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Insights

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Net Zero Strategy

Achieving Net Zero requires coordinated action touching on many aspects of the organisation. What may seem daunting can be broken down into strategic and manageable pathways for transformation that starts with analytics, moves on to developing solutions, and ends in implementing change.

Our Experts

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We are the world’s leading science-based advisory, purpose-driven agency and digitally-empowered activator. And always welcome inquiries and partnerships to drive positive change together.