Factoring Climate Risk and Opportunities into Operation
Climate risk assessments identify the likelihood of future climate events and their potential impacts for companies, cities, and communities. Scenario analysis is an enhancement that explores the plausible future outcomes based on different assumptions and drivers. The gold standard methodology was the Task Force on Climate-Related Financial Disclosures (TCFD) created in 2017. As of January 2024, the International Sustainability Standards Board (ISSB) standards, IFRS S1 and IFRS S2, have incorporated TCFD recommendations and will be the new standard moving forward. These new standards provide a global baseline of disclosures.
Canopy Edge Engagement Framework: Climate Risk
Initiate
- Data collection on selected sites
- Benchmark assessment
- Identify physical and transitional risks and opportunities
- Engage stakeholders
Process
- Prioritize risk and opportunities based on climate data and stakeholder Inputs
- Analyze financial impacts
- Evaluate risk mitigation and adaptation
- Provide recommendations
Outcome
- Workshop
- Executive presentation
- Data file delivery
- Allows reporting to regulatory agencies
- Integrates your risks and opportunities into operations