Climate change is increasingly becoming an important business consideration. Changes in weather patterns, resource availability, regulations, energy markets, supply chains, and customer expectations can affect how organisations operate and plan for the future. Climate Change Services help businesses identify these risks, understand potential impacts, reduce emissions, strengthen resilience, and develop practical strategies for long-term sustainability.
Climate change can affect businesses through both physical risks and transition risks. Physical risks may include extreme weather events, flooding, heat, water shortages, and other environmental changes. Transition risks can arise from changes in regulations, technology, markets, consumer preferences, and the shift toward lower-carbon business models. The IFRS Foundation identifies both physical and transition risks as important elements of climate-related financial disclosure.
Professional climate change support can help organisations move beyond general environmental commitments and develop measurable actions based on their operations, industry, risk exposure, and business objectives.
Climate Change Services are professional advisory services that help organisations understand, manage, and respond to climate-related risks and opportunities.
The scope of these services can vary depending on the size, sector, location, and objectives of an organisation. A climate change consulting engagement may include:
The objective is to connect climate considerations with practical business decisions rather than treating climate change as a separate environmental issue.
Climate-related issues can influence business continuity, operating costs, assets, supply chains, financing, reputation, and long-term strategy. The UNFCCC notes that climate impacts and changing regulatory and business environments can create significant risks for businesses, while adaptation can help organisations prepare for and reduce those risks.
Businesses therefore need to understand where they may be vulnerable and what actions can improve their resilience.
For example, a manufacturing company operating in an area exposed to extreme heat may need to assess how rising temperatures could affect production, employees, equipment, and energy consumption. A logistics company may need to consider disruptions caused by flooding, storms, or changing transportation conditions. A financial institution may need to assess climate-related risks within its investment or lending portfolio.
Climate Change Services provide a structured approach to identifying these issues and incorporating them into business planning.
Climate risk assessment helps businesses identify potential physical and transition risks that could affect their operations.
Physical risks may include:
Transition risks may include:
A climate risk assessment can help management determine which risks are most relevant, assess their potential consequences, and prioritise appropriate responses.
A climate strategy provides a structured direction for managing climate-related challenges and opportunities.
An effective strategy should be connected to the organisation’s broader business objectives. It may include emissions reduction targets, energy efficiency measures, adaptation actions, investment priorities, governance responsibilities, and reporting requirements.
Climate strategy should not simply state that an organisation wants to become more sustainable. It should explain what needs to change, who is responsible, how progress will be measured, and how climate objectives relate to business performance.
Understanding greenhouse gas emissions is an important part of climate management.
Businesses can assess emissions associated with their operations, purchased energy, and relevant activities across their value chain. Depending on the organisation, this may involve reviewing fuel consumption, electricity use, transportation, purchased goods, waste, business travel, and other sources.
The assessment can help identify major emission sources and establish priorities for reduction.
Reliable emissions information is also increasingly relevant to climate-related reporting. IFRS S2 includes disclosure requirements covering Scope 1, Scope 2, and Scope 3 greenhouse gas emissions, alongside other climate-related metrics and targets.
Once significant emission sources have been identified, businesses can develop a carbon reduction plan.
Possible actions may include:
A practical reduction plan should establish priorities, responsibilities, timelines, and measurable performance indicators.
Climate adaptation focuses on preparing businesses for climate-related impacts that may already be occurring or could occur in the future.
Adaptation measures can include strengthening facilities, improving water management, reviewing emergency procedures, diversifying suppliers, protecting critical infrastructure, and developing business continuity measures.
The appropriate approach depends on the company’s operations and exposure.
For example, a business located in an area with high flood exposure may need stronger flood protection and emergency response planning. A company dependent on water-intensive operations may need to assess future water availability and develop resource-efficiency measures.
Scenario analysis can help organisations explore how different climate conditions may affect their business models and strategies.
Rather than predicting one specific future, scenario analysis examines potential situations and considers how the organisation might respond.
For example, a company could assess how its business may perform under different combinations of:
IFRS S2 requires entities applying the standard to use climate-related scenario analysis to assess and disclose climate resilience.
Professional climate advisory support can help businesses structure scenario analysis in a way that is appropriate for their size, sector, resources, and risk profile.
Climate-related reporting is becoming increasingly important for organisations that need to communicate sustainability and climate information to investors, lenders, regulators, customers, and other stakeholders.
The International Sustainability Standards Board’s IFRS S2 focuses specifically on climate-related disclosures. It covers governance, strategy, risk management, metrics, targets, and information about climate-related risks and opportunities.
Climate reporting may require organisations to understand:
The reporting requirements applicable to a business depend on its jurisdiction, reporting framework, size, and other factors.
Climate Change Services help businesses identify risks before they create significant operational or financial problems.
Climate adaptation and resilience planning can help organisations prepare for disruptions and protect critical operations.
Climate assessments can identify opportunities to reduce energy, water, fuel, materials, and other resource consumption.
Climate-related requirements continue to develop across jurisdictions and industries. Professional support can help businesses understand applicable requirements and prepare relevant information.
Climate information can provide management with additional insight when evaluating investments, facilities, suppliers, technologies, and long-term strategies.
Transparent climate strategies and reliable reporting can help organisations communicate their approach to environmental risks and opportunities.
Climate change can create opportunities as well as risks. Businesses may identify opportunities through clean technology, energy efficiency, new products, sustainable supply chains, and changing customer demand.
Climate-related risks differ significantly between sectors.
Manufacturers may focus on energy consumption, production efficiency, supply chain risks, water use, emissions, and facility resilience.
Construction companies may assess extreme weather exposure, material use, project disruption, energy efficiency, and climate-resilient building practices.
Banks, investment firms, and other financial organisations may assess climate-related risks associated with their portfolios, customers, investments, and lending activities.
Transportation businesses may consider fuel consumption, emissions, extreme weather, route disruption, infrastructure, and changes in transportation technology.
Property businesses may assess flood risk, heat exposure, energy efficiency, building resilience, insurance considerations, and long-term asset value.
Hotels and hospitality businesses may examine energy consumption, water use, waste, supply chains, extreme weather, and changing customer expectations.
Climate change should be integrated into organisational governance rather than managed only by an environmental team.
Senior management and boards can play an important role in overseeing climate-related risks, opportunities, targets, and investments.
A structured governance approach can define:
IFRS S2 includes governance-related disclosure requirements concerning the processes, controls, and procedures used to monitor, manage, and oversee climate-related risks and opportunities.
A professional climate change engagement can follow several stages.
The organisation’s operations, activities, locations, objectives, and existing sustainability practices are reviewed.
Relevant physical and transition risks, as well as potential climate-related opportunities, are identified.
Information relating to energy, emissions, assets, operations, supply chains, and other relevant areas is collected.
The collected information is assessed to identify material risks, emission sources, vulnerabilities, and improvement opportunities.
A practical climate strategy and action plan are developed based on the organisation’s priorities.
Actions, responsibilities, targets, and performance measures are established.
Progress is monitored through appropriate indicators, reviews, and reporting processes.
Businesses should consider several factors when selecting a climate advisory provider.
First, evaluate the provider’s experience with the organisation’s industry. Climate risks can differ significantly between sectors, so sector knowledge can improve the quality of the assessment.
Second, consider the provider’s technical capabilities. Climate risk assessment, emissions accounting, scenario analysis, reporting, and strategy development may require different areas of expertise.
Third, review the approach to data and reporting. Reliable information is essential when setting targets or preparing climate-related disclosures.
Businesses should also consider communication, project methodology, reporting quality, relevant standards, and the provider’s ability to support implementation rather than simply delivering a report.
Climate change is increasingly connected to broader business decisions. Organisations may need to consider climate risks when planning investments, selecting suppliers, managing facilities, developing products, and evaluating future markets.
A strong climate strategy can therefore support more resilient decision-making. It can also help businesses identify areas where operational improvements and environmental objectives overlap.
For example, reducing energy consumption can potentially lower operating costs while reducing emissions. Improving supply chain resilience can help protect business continuity while addressing climate-related risks. Investing in efficient equipment can support both operational performance and environmental objectives.
The value of Climate Change Services comes from connecting these considerations with measurable business actions.
Climate Change Services provide businesses with a structured approach to understanding climate-related risks, reducing emissions, improving resilience, and preparing for changing market and regulatory conditions. From climate risk assessment and emissions analysis to adaptation planning, scenario analysis, reporting, and climate strategy development, these services can support organisations in making better-informed long-term decisions.
Climate change can affect physical assets, supply chains, operating costs, financial performance, and business models. By identifying relevant risks and opportunities early, businesses can develop practical measures to protect operations and strengthen resilience.
Professional climate change support can also help organisations establish measurable objectives, improve climate-related data, prepare appropriate disclosures, and connect environmental priorities with business strategy.
For organisations seeking to manage climate-related challenges while identifying opportunities for efficiency, resilience, and sustainable growth, Climate Change Services can provide the expertise and structured approach needed to move from climate awareness to practical action.