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Climate Impact ESG

Getting ahead of climate risk requires a detailed understanding of your carbon footprint and underlying sources of carbon emissions – as well as forward looking metrics on your exposure to physical and transition climate risks.

Carbon Footprint Physical Risks Transition Risks

66% of major global companies have at least one asset at high risk of physical risk under the high impact climate change scenario in 2050.

The greatest risk comes from water stress and wildfire.

We help you to pinpoint the exposure of company owned facilities, supply chains and capital assets from physical risks including sea-level rise, flooding, heat wave, cold wave, drought, hurricanes, and wildfires. We provide insight on low, medium and high impact climate change scenarios across time intervals to help companies and financial institutions to manage risk and inform adaptation strategies.

In the map below we show how physical risk from cold wave, heat wave, water stress, flood, and wildfire changes over time and region under a high impact scenario.

Physical Risks

Low
0-20
Low-Medium
20-40
Medium-High
40-60
High
60-80
Extremely High
80-100
Source: S&P Global Trucost. Data as at November 2020. For illustrative purposes. Data showcase is based on a high impact climate change scenario for four physical risk indicators: cold wave, heat wave, water stress, flood, and wildfire.

Accelerating the transition to a sustainable future

Whether you are a financial institution, government or company, there are a number of steps that you can take to help accelerate the transition to a sustainable future.

01

Set Your
Baseline

Understand your performance on material sustainability factors across your entire value chain including business operations and product lifecycles. Financial institutions should focus on their investment or loan portfolios.

02

Use Scenario
Analysis

Use forward-looking scenarios that consider the impact of sustainability risks and opportunities on your business planning and investment strategies. Assessing climate transition and physical risks is a good place to start.

03

Identify
Opportunities

Assess how well your business, investment or loan portfolios are aligned with global societal goals such as the SDGs that are focussed on creating a positive impact.

04

Set
Targets

Consider setting robust and science-based targets that demonstrate your commitment to managing sustainability risks and opportunities.

05

Report and
Engage

Report your ESG performance to relevant stakeholders ideally alongside the financial results in your annual reports. Use your baseline results to engage with important stakeholders such as suppliers, customers and employees.

Make sustainable decisions with conviction

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More
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