Climate Risk Assessment

HPBS supports companies in identifying and assessing physical and transition climate risks in accordance with international approaches and the requirements of investors, banks, and international financial institutions.

We help determine how climate change, climate regulation, and the transition to a low-carbon economy may affect a company’s operations, assets, supply chains, and long-term business resilience.

What the service includes

1. Defining the assessment approach and scope

• identifying the facilities, business areas, and geographic scope of the analysis

• selecting climate scenarios and time horizons

• agreeing on the methodology for assessing risks and opportunities

2. Identification of physical climate risks

• analysis of climate risk factors for the regions where the company operates

• assessment of the risks of extreme heat, drought, flooding, and water scarcity

• determination of the potential impact of climate factors on production facilities and operations

3. Identification of transition climate risks

• analysis of changes in regulation and climate-related disclosure requirements

• assessment of risks associated with carbon regulation, CBAM, and ESG requirements

• analysis of market, technological, and reputational factors in the transition to a low-carbon economy

4. Assessment of climate risk impacts

• qualitative and quantitative assessment of the likelihood and magnitude of risk impacts

• identification of the most material risks for the company

• assessment of potential impacts on assets, expenses, investment plans, and business resilience

5. Identification of climate opportunities

• identification of opportunities to improve energy efficiency

• determination of the potential to reduce greenhouse gas emissions

• assessment of opportunities to attract green and sustainable finance

6. Preparation of recommendations

• development of climate change adaptation measures

• recommendations for managing physical and transition risks

• preparation of a foundation for ESG reporting, a climate strategy, and disclosures

Service deliverables

• climate risk assessment report

• register of physical and transition climate risks

• assessment of climate risks and opportunities

• recommendations for adaptation and risk management

• action plan for further integration of climate factors into corporate management