Scenario analysis is a process of examining and evaluating possible events that could take place in the future by considering various feasible results or outcomes.
The scenarios are not intended to represent a complete description of the future, but rather highlight the central elements of a possible future, draw attention to the key factors that will guide future developments, develop the scenarios that are hypothetical constructions, with the tools available.
Hypothetical constructions that lead the company to evaluate results considering the series of historical data and the variables of relevance to predict the evolution of its business model based on the factors considered and the company objectives.
In a world of uncertainty, the scenarios aim to explore alternatives that can significantly alter forecasts on hypotheses in a "business-as-usual" key. The scenario analysis is a useful tool to support business decisions that allows to consider different risks related to climate change to be considered in the company's strategic choices.