MANAGEMENT OF RISKS AND OPPORTUNITIES RELATED TO CLIMATE CHANGE

In recent years, climate change has emerged as one of the main global risks highlighted by the World Economic Forum's Global Risks Report: a lack of targeted and global action in the face of climate change has become one of the main threats to the world, even overcoming the risks up to currently other threats perceived as more looming, such as those linked to the economy.

However, it is estimated that failure to take action against the climate can potentially cost much more than the cost of implementing such actions: companies can therefore constitute an important driver of change for the mitigation of climate change and the transition to an economy zero emissions.

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Carbonsink helps companies in assessing and quantifying climate risk both at a strategic and operational level, in the belief that the private sector can assert a predominant role in guiding the net-zero emissions transition.

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Why is it important?

The benefits for companies go far beyond the reduction of emissions: companies that are able to assess and understand the risks and opportunities related to the climate will be more inclined to make forward-looking decisions in the long term, knowing better to seize future business opportunities.

Proper assessment and management of climate risks can concretely help a company understand what the financial markets require, starting with reporting, in order to measure and react to the risks of climate change and align reporting to the needs of investors.

The Carbonsink approach in terms of risk and opportunity management is aligned with the recommendations of the Task Force on Climate-related Financial Disclosures. The establishment of the TCFD, in fact, as well as the introduction of new regulations that require companies to be more committed and transparent in the management of risks and opportunities related to climate change in the short and long term, have actually increased / intensified the attention from the private sector towards these issues.

Our support

Quality Review on existing Risk Management activities with reference to the risks associated with climate change:
- Analysis and understanding of physical and transition risks related to the sector and national and international benchmark;
- Definition of the relevance of possible risks considering the materiality of the climate change for the company's business.
Definition of one or more representative climatic scenarios for the company and definition of the reference temporal horizons (short, medium and long term)
Selection and mapping of physical and transitional climatic risks according to the TCFD scheme
Definition and selection of Key Risk Indicators as metrics linked to each risk
Evaluation of the Key Risk Indicators in the various scenarios and exploration of the possibilities of quantifying risks and opportunities in monetary terms
Identification of possible response actions to be included within the business strategy, with reference to emission reduction targets for risk management and the achievement of long-term objectives