Climate change induces disruptions of our ecosystems, and the transition to a low-carbon economy significantly affects the political, economic and social landscapes. Businesses have to adapt to those changes, which entails risks and opportunities. Some changes are already visible today, but the deepest changes are expected to materialize over the mid to long term, and there is a lot of uncertainty around their timing and magnitude. In this context, the use of forward-looking scenarios is particularly useful to evaluate the resilience of a business to climate-related risks, and it is recommended by the TCFD.
This Climate Brief gives an overview of the degree of implementation of climate-related scenario analysis to evaluate risks and opportunities, based on the answers of a sample of 2,003 companies to CDP 2017 Climate Change questionnaire.