Climate scenario analysis
Climate scenario analysis is a tool that empowers companies to develop a mid and long-term strategic vision that accounts for climate risks and opportunities.
A climate scenario is a forecast of how climate risks and opportunities may affect businesses’ future development.
With an increase of the climate-related operational risks, this type of analysis has become vital for companies. This tool can also help investors protect their return-on-investment (ROI).
Reporting the climate impact on the business activity (besides the company impact on climate change) has a dual goal: raising companies’ awareness on climate change, thus pushing them to adopt a mid and long-term mitigation and adaptation plan; estimating their financial impact to communicate the TCFD-compliant company decarbonisation commitment to all stakeholders.
Transition scenarios define business economic development trajectories that produce a certain GHG emissions level. Instead, physical scenarios calculate the impact of GHG emissions variation on climate change.
Physical and transition scenarios complement one another. Transition models calculate GHG emissions variation based on different development trajectories, while physical models show the impact of such changes on the climate.
Comparing results from different scenarios aims at assessing how the transition to a sustainable economy affects future development and emissions.
Why should you rely on Carbonsink?
Our 10-year experience in climate change positions us among the top players helping businesses define their climate scenarios and adopt a mid and long-term mitigation and adaptation strategy based on the resulting climate risks and opportunities.