Determining the effects of climate change on your organisation
Climate change is altering the context in which businesses operate. Organisations are facing a less stable environment, where unexpected events are becoming a reality more quickly. It is therefore essential to gain a timely understanding of both the risks and opportunities associated with this and to determine what actions are needed to remain future-proof.
Physical risks, such as damage caused by extreme weather or disruptions in the supply chain, can directly impact operational processes. At the same time, transition risks are becoming increasingly apparent: stricter laws and regulations, geopolitical uncertainties, changing markets and new technologies that raise the bar. These developments can have direct financial, strategic and reputational consequences for organisations. The CSRD also requires companies to systematically identify these risks and report them transparently.
At the same time, these changes also present opportunities. New technologies can enable more efficient and cost-effective operations, emerging markets create scope for innovation, and green financing is becoming more accessible to forward-looking organisations.
A climate risk analysis identifies these risks and opportunities, thereby forming a crucial basis for a robust, well-founded and future-proof strategy.
Get startedThis is how we do it – your own action plan in four steps
1. Scoping
Together, we map out the value chain to identify where climate risks may arise. Through exploratory discussions with internal stakeholders, we identify which parts of the organisation, processes and sites are most vulnerable. Based on this, we define the scope of the analysis: which risks, sites, activities and opportunities will be included. We validate and present the scope to the project team, ensuring everyone is on the same page.
2. Assessment
Using the validated scope, we carry out an in-depth risk analysis. For physical risks, we assess exposure to climate hazards and the vulnerability of processes and assets at each location. For transition risks, we combine interviews with desk research, focusing on changing legislation, market trends, geopolitical developments and technological changes. We then carry out a scenario analysis to examine how different future scenarios might influence the risks and opportunities. This provides the organisation with insight into potential impacts and the robustness of its current strategy. We discuss the results with the project team to ensure clarity and build support.
3. Determine financial effects
In this phase, we translate the identified risks and opportunities into financial impact. We assess which risks require direct investment, which influence strategic choices, and which present opportunities. If financial risk scales are not yet available, we develop them first. We feed these insights back to the project team, so that it becomes clear where priorities lie and which scenarios are most relevant for decision-making.
4. Action plan
Finally, we bring all insights together in one or multiple workshops with internal stakeholders. Together, we determine concrete measures: what needs to be done, by whom and when? We translate the outcomes into a clear action plan, including scope, required resources, timeline and responsibilities. We document all steps in a policy document that meets relevant reporting requirements. In a concluding presentation, we hand over the action plan and policy to the project team, so that the organisation can take the next steps with confidence and well prepared.
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Frequently asked questions
You gain insight into where risks arise, what the potential impact is and what opportunities exist. In addition, the analysis helps to set priorities, underpin investment decisions and formulate a climate-resilient strategy. The result is a concrete action plan that you can put into practice immediately.
Climate risk management is the process by which an organisation identifies, assesses and actively manages climate-related risks and opportunities. It goes beyond mere insight: it helps organisations make choices regarding strategy, investments and operational measures. By systematically monitoring risks and linking them to policy and action plans, the organisation is better prepared for changing circumstances. In this way, climate risk management contributes to business continuity, agility and future-proof operations.
Physical risks arise from climate-related events, such as extreme weather, heatwaves or flooding. Transition risks relate to changes in legislation, technology, markets and reputation. Together, they provide a comprehensive picture of how climate change could affect your organisation: both operationally and strategically.
You determine the costs of climate risks by determining which events may occur, how likely they are, and what financial impact they will have. For physical risks, for example, you look at potential damage to buildings, loss of production or disruptions in the supply chain. For transition risks, this involves factors such as additional costs due to new regulations, investments in technology, or loss of revenue due to changing market demand. By bringing these elements together in risk scales and scenarios, you create a substantiated estimate of the total costs. This way, it provides clarity where investments actually reduce risks or present opportunities.
Get started with your own team
We firmly believe in teamwork. We customise our strategic long-term projects, according to the needs of your company or organisation. We form a dedicated team of three to six experts, diverse and resilient in nature. They work together to guide your organisation from the development stage to the implementation stage. This way, we safeguard quality and guarantee the continuity of your sustainability initiatives. Want to make an impact together?
A preview of our experts
Meet two of our experts who, together with a dedicated team of fellow experts, contribute to the long-term success of our clients.
Romeo Kaptijn
Has the ability to translate detailed insights into strategic actions.
Link to Romeo
Maarten Andriessen
Great enthusiasm in helping our clients achieve their sustainability ambitions.
Link to Maarten
