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Assessments & Strategy
Climate Risk Assessment
A Climate Risk Assessment evaluates the physical and transition risks associated with climate change across your organisation and value chain, and supports the financial disclosures now required under TCFD and IFRS S2.
The IFRS S2 Climate-related Disclosures standard — adopted by regulators in multiple jurisdictions — requires organisations to disclose climate risks and opportunities across four TCFD pillars: Governance, Strategy, Risk Management, and Metrics & Targets. Physical risks are assessed across acute hazards (floods, heatwaves, cyclones) and chronic shifts (sea-level rise, temperature change). Transition risks span policy and legal, technology, market, and reputational categories per the TCFD recommendations. Without a structured assessment, organisations risk material gaps in regulatory disclosures and under-prepared enterprise risk management.
Our approach
A structured climate risk assessment is conducted in line with TCFD recommendations and IFRS S2 requirements, incorporating both physical and transition risk analysis across short-, medium-, and long-term time horizons. Scenario analysis uses NGFS (Network for Greening the Financial System) climate pathways — including Net Zero 2050, Delayed Transition, and Current Policies scenarios — and IPCC SSP/RCP trajectories. Outputs are structured to support TCFD-aligned disclosures, IFRS S2 reporting, and integration into enterprise risk management.
- Identification of physical climate hazards (acute and chronic) and transition risk drivers (policy, technology, market, reputational) per TCFD taxonomy
- Mapping of risk exposure across operations, fixed assets, supply chains, and revenue streams
- Climate scenario analysis using NGFS Net Zero 2050, Delayed Transition, and Current Policies pathways
- Assessment of financial materiality and impact magnitude under each scenario across defined time horizons
- Evaluation of risk likelihood, severity, and velocity aligned with IFRS S2 disclosure requirements
- Identification of climate-related opportunities including efficiency gains, low-carbon products, and new markets
- Integration of findings into TCFD-aligned disclosure framework and enterprise risk register
Outcomes
TCFD-aligned climate risk assessment covering all four disclosure pillars
Scenario analysis outputs aligned with NGFS pathways and IPCC projections
Quantified understanding of financial and operational exposure under multiple climate scenarios
IFRS S2-ready disclosures on climate risks, opportunities, and resilience strategy
Integration of climate risk into enterprise risk management and strategic planning
Speak with an expert
The team can walk you through exactly how Climate Risk Assessment applies to your organisation's context and objectives.
Get in touch