Climate-related risk management
Why climate risk management is essential for all businesses.
Simply Sustainable has developed a robust, science-led approach to climate-related risk management, rooted in the Taskforce on Climate-related Financial Disclosures (TCFD). We help businesses assess how climate risks and opportunities may affect their strategies, operations, and financial planning over the short, medium, and long term. Our services support regulatory compliance (including UK CFD, EU CSRD, and future ISSB-aligned standards) while enhancing transparency, resilience, and stakeholder trust. From high-level global risk assessments to detailed modelling of physical assets and value chains, our tailored support empowers companies to make informed, future-proofed decisions in line with the evolving climate and regulatory landscape.
The global economy needs common reporting standards to reduce fragmentation and drive comparability in climate-related financial data – information that is critical for creating more transparent markets, helping achieve a smooth low-carbon transition, and building a more resilient and sustainable global economy.Ilham Kadri Exec Committee Chair, World Business Council for Sustainability
- €13.4 billion
Of economic losses associated with extreme weather events in Europe in 2023.
- 66%
Of major global companies will have at least one asset at high risk because of the physical impacts of climate change.
- $2 trillion
Is the market opportunity estimated by the World Economic Forum (WEF) for adaptation and resilience investments.
- £1.2 billion
Was paid out by property insurers in the UK last year on claims attributed to climate-related disasters—the highest level since 2007.
Our three stages to climate risk management success:
Business model, operations and strategy risk assessment
Understand how the changing climate may impact your business model, operations and strategy. Our TCFD-aligned processes will help translate climate risks into financial impacts and are fully compliant with UK CFD, UK SRS, IFRS S2 and EU CSRD.
Physical assets, operational sites and offices risk assessment
Understand how the physical impacts of climate change may affect your asset portfolio. Our location-specific risk modelling will help identify which assets in your portfolio, manufacturing, distribution and operations are most at risk of the physical impacts of climate change.
Supply chain risk assessment
Identify key climate risks in your value chain. By combining a location specific risk modelling tool with our expertise in sustainable supply chain management, we can identify risk hotspots across your full value chain and understand how prepared your value chain partners are to mitigate climate risks.
Business model, operations and strategy risk assessment.
Understand how the changing climate may impact your business model, operations and strategy. Our TCFD-aligned processes will help translate climate risks into financial impacts and are fully compliant with UK CFD, UK SRS, IFRS S2 and EU CSRD.
Gap analysis and value chain mapping
- Starting with an evaluation of your climate risk journey so far, we will review your current alignment with TCFD, UK CFD, UK SRS, IFRS S2 and EU CSRD to identify improvements.
- We will seek to understand your full business model and operations through a value chain mapping excersise to identify what risks your business may be exposed to and where the opportunities lie.
Scenario analysis
- Using the most up-to-date science, we will research how your risks and opportunities may evolve across three climate change scenarios. This will allow you to future-proof your business against short, medium, and long-term climate risks and prepare for opportunities in a range of plausible climate scenarios.
- This will be summarised in a highly detailed scenario analysis report.
Risk evaluation
- From here, we will faciliate workshops and collaboration sessions with your teams to assess the level of exposure and preparedness of the identified risks, scoring each risk against your corporate risk management processes and idenfiy the most pressing actions.
- This highly collaborative approach helps teams across the business model understand how their roles could be impacted by climate change and what they can do mitigate these risks and realise opportunities.
Reporting and audit
- We will complete our work with a climate-risk management report, fully aligned to the 11 recommendations of the TCFD and fully compliant with UK and EU regulations. This report can be published as a stand alone document or into Annual Reporting and Accounts (ARAs), Interated Reporting or Sustainability Reporting.
- Since the launch of climate-related regulations in the UK and the EU, we have maintained a 100% compliance record with all of our clients.
Physical assets, operational sites and offices risk assessment.
Understanding the physical impacts of climate change on your asset portfolio is a critical next step in climate risk assessment. Our tools help identify how climate risks may affect offices, manufacturing sites, distribution centres, and other physical assets, enabling tailored risk mitigation strategies across different geographies. They can also be used to assess temporary sites, support construction planning, new market entry, investment due diligence, logistics, and property portfolio management, providing valuable insights for operational and strategic decisions.
Site-specific physical risk assessment
- Mapping your global physical asset portfolio to an exact geolocation, we will evaluate how the physical impacts of climate change may impact your assets and where the greatest exposure is.
- Our bespoke modelling tool reviews a range of physical climate risks such as extreme rainfall, drought, hurricanes, cyclones, tornadoes, sea level rise and extreme heat.
Flood risk assessment
- We will overlay this a location specific flood risk assessment accurate to 5m2. This assessment will consider how floodplains and river and coastal proximity may impact your assets’ risk exposure to flooding and sea level rise.
- Flood risk modelling to 5m2 accuracy is currently only available for the UK, with global locations being mapped to a 500m accuracy or less.
Risk rating and prioritisation
- We will score the relative risk exposure for each site assessed, rapidly identifying the areas of most and least concern.
- Through engagement with relevant stakeholders, we will understand how prepared key sites are to mitigate physical climate risks and provide actionable recommendations to reduce exposure and maximise preparedness.
Reporting and engagement
- We will summarise our findings in a detailed report, equipped with key outcomes of the assessment and key recommendations to address risks and realise opportunities.
- We can also offer collaborative workshops with key stakeholders to maximise engagement, upskill responsible people and fast-track solutions.
Supply chain risk assessment.
Ensuring a reliable supply chain is increasingly challenging in the face of climate change. Using our location-specific risk modelling tools and expertise in sustainable supply chain management, we assess climate risk exposure across the entire value chain and evaluate how prepared key partners are to mitigate those risks. This includes detailed, site-specific analysis of suppliers involved in procurement, manufacturing, logistics, and end-of-life stages, considering both physical and transitional risks such as extreme weather, regulatory shifts, and changing stakeholder expectations. Our support identifies critical risk hotspots and includes tailored assessments of partner readiness, from desktop reviews to in-person audits.
Value chain mapping
- We will work together to build a value chain map covering your global business model, aiming to identify key suppliers by location, revenue and dependency to your operations and scale that may be most at risk and/or are essential to business continuity.
Risk identification and mapping
- We will model risks related to climate across your value chain, identifying which locations are most at risk of the physical and transitional risks of clmate change.
- We will align this model to up to three plausible climate change scenarios, rooted in the most up to date climate science.
Risk rating and prioritisation
- We will score the relative risk exposure for each value chain partner assessed depending on their location and importance to your business, rapidly identifying the areas of most and least concern.
- Depending on the level or support required, we will then assess the level of preparedness of key value chain partners to mitigate identified risks, either through desktop research, virtual engagement or in-person audits.
Reporting and engagement
- We will summarise our findings in a detailed report, equipped with key outcomes of the assessment including a risk hotspot summary and key recommendations to address risks and realise opportunities.
- We can also offer collaborative workshops with key stakeholders to maximise engagement, upskill responsible people and fast-track solutions.
Insights
More services
ESG and Sustainability Strategy
Whatever the scale of your business, we can help you design and implement a robust, practical yet achievable strategy.
Climate and carbon
Helping businesses to act on the climate crisis by understanding their impacts and developing solutions to deliver decarbonisation at scale.
Risk, reporting and communications
Demonstrating commitment, progress, and impact through transparent, ESG reporting and powerful communications to enhance business growth.
Learning and development
Sustainability can be a complex landscape, we work with your organisation to fully equip your employees and stakeholders with the necessary skills and knowledge so everyone can engage in your strategies.
Disclosures
Given our comprehensive understanding of key sustainability disclosure standards, we will work with you to identify compliance gaps and alignment issues and offer strategies to enhance business performance across various reporting frameworks.
558b4452-30a1-dfa6-7152-7208a4a6cc6f (msci.com)
The Corporate Net-Zero Standard – Science Based Targets Initiative
https://www.nature.com/articles/d41586-018-05219-5