Climate Scenario Analysis
GreenCo has recently assisted a listed company in conducting a climate scenario analysis for their enhanced climate-related disclosures with reference to the Task Force on Climate-related Financial Disclosures (TCFD) recommendations and International Financial Reporting Standards (IFRS) S2 Climate-related Disclosures. Scenario analysis is also a well-established tool as it helps the company understand how potential climate risks and opportunities could evolve and impact their business, thereby developing flexible strategic plans to a range of plausible future states.
Developing and Applying Model
Based on the principles of high contrast, balanced and science-based, GreenCo helps the company to identify and define two types of climate pathways: 1) a stringent pathway leading to high transition risks; and 2) a high emissions/ business-as-usual pathway leading to high physical risks. Depending on the business nature of the company, GreenCo conducts benchmarking and develops social-economic assumptions for the company by combining its operation locations, business activities and publicly available data. In addition, GreenCo explores different climate-related models and projections to illustrate the environmental, social and technological changes (e.g., temperature and precipitation pattern, carbon price, application of renewable energy) as well as economic development (e.g., GDP growth) in the future. For instance, GreenCo helps the company identify the proportion of its property at high flooding risk based on the sea level rise and coastal flood risk maps.
Assess Risk and Opportunities
By leveraging the expertise of its team, GreenCo guides the company in fully understanding and assessing potential business implications, financial risks and opportunities arising from climate change, thereby formulating response action and transition plans to address the material risks. By offering professional and tailored services, GreenCo is committed to supporting the company in leading the climate disclosure and accelerating green transformation in response to climate change.
