As the impact of climate change intensifies, businesses across the globe are recognizing the need to integrate climate considerations into their operations and strategy. This has fueled the need for climate risk consulting.
These specialized firms offer specific solutions to help companies assess their climate vulnerabilities, develop resilience strategies, and align with evolving regulatory requirements.
From developing net-zero strategies to conducting climate stress tests, climate risk consultants can help companies navigate their way to a more sustainable business model.
In this article, we’ll showcase the 12 leading climate risk consulting firms that are at the forefront of this critical industry in 2024.
But first, let’s understand how we define the concept of climate risk, why we need climate risk assessment, and what services these specialists can offer businesses like yours.
What is Climate Risk?
The term ‘climate risk’ refers to the potential adverse effects of climate change on governments, companies, economies, people, and ecosystems. This concept covers a spectrum of threats, including sudden disasters and long-term environmental changes.
Taxpayers and consumers frequently shoulder the financial burden of these disasters, and the expenses accumulate rapidly. In 2023, climate disasters resulted in $92.9 billion in damages in the United States, and since 1980, extreme climate events have incurred costs exceeding $2 trillion.
The consequences can be far-reaching, affecting economic stability, social structures, and natural habitats.
Identifying these risks and developing strategies to mitigate them are important steps for communities, companies, and policymakers to take in the face of climate change.
Evaluating climate risk requires consideration of impact probability, potential consequences, and system vulnerabilities. The complexity of this assessment is increased by uncertainties in climate science and significant regional differences.
All of these factors only serve to highlight the need for skilled and knowledgeable risk management approaches.
The Importance of Climate Risk Assessment
Climate change is no longer just an environmental concern; it has emerged as a significant economic challenge with far-reaching implications.
The financial toll of climate-related disasters underscores the urgent need for comprehensive risk management strategies across all sectors of society.
To navigate this challenging landscape, a proactive approach to climate risk assessment is essential for all stakeholders. Here are a few of the reasons assessing your climate risk exposure is important to the sustainability of your business:
Identifies Vulnerabilities
Climate risk assessments help companies pinpoint areas of their business that are most susceptible to climate-related disruptions. This could include:
Physical risks: Extreme weather events, rising sea levels, or changes in temperature patterns that could damage infrastructure or disrupt operations.
Transition risks: Transition risks arise as the world shifts towards a low-carbon economy. These risks can stem from changes in policy, technology, and market preferences that affect carbon-intensive industries.
Liability risks: Liability risks are associated with the potential legal consequences stemming from the impacts of climate change. Organizations may face lawsuits for failing to mitigate climate-related risks adequately or for not disclosing material risks to stakeholders. As climate-related litigation increases, companies must be vigilant in their risk management strategies to avoid legal repercussions.
Reputation risks: Reputation risks arise from changing public perceptions regarding a company’s environmental impact. Organizations that are perceived as lagging in their sustainability efforts may face backlash from consumers, investors, and other stakeholders.
This can lead to diminished brand value, loss of customer loyalty, and challenges in attracting investment. Companies are increasingly held accountable for their contributions to climate change, making it crucial for them to communicate their sustainability initiatives effectively.
Assists With Regulatory Compliance
As governments worldwide implement stricter environmental regulations, climate risk assessments help businesses stay compliant. By understanding the evolving regulatory requirements, companies can develop strategies to meet them, thereby avoiding penalties and enhancing their reputation. This proactive stance not only minimizes legal risks but also demonstrates a commitment to sustainability, which can improve market positioning.
Impacts Resource Efficiency and Cost Savings
Effective climate risk assessments identify opportunities for optimizing resource use, such as energy and water consumption. By improving efficiency, businesses can reduce their environmental footprint and operational costs. This dual benefit of sustainability and profitability makes climate risk assessment a vital component of strategic business planning.
Creates Innovation and Competitive Advantage
Engaging in climate risk assessment fosters a culture of innovation within organizations. By addressing climate challenges, businesses are encouraged to develop new solutions and collaborate with stakeholders, leading to innovative products and services. This not only mitigates risks but also opens up new market opportunities, providing a competitive edge.
Builds an Adaptive Workforce
Another critical aspect is the impact of climate risk assessment on workforce engagement. Employees increasingly seek to work for companies that prioritize sustainability. By implementing effective climate strategies and training programs, organizations can attract and retain talent who are aligned with their sustainability goals, thereby enhancing overall organizational resilience.
Developing Resilience Strategies
Once risks are identified, organizations are able to develop actionable adaptation plans that can be applied to their unique circumstances. These plans may include:
- Infrastructure Resilience: Upgrading existing infrastructure to withstand climate impacts, such as reinforcing buildings against flooding or heatwaves, and investing in green infrastructure solutions like wetlands restoration.
- Supply Chain Management: Diversifying supply chains to reduce dependency on vulnerable sources and incorporating climate resilience into procurement strategies.
- Business Continuity Planning: Establishing contingency plans that outline procedures for responding to climate-related disruptions, ensuring that operations can continue in the face of adverse events.
Monitoring and Evaluation
Resilience strategies must be dynamic and adaptable to changing conditions. Implementing monitoring and evaluation systems allows organizations to track the effectiveness of their resilience measures over time.
By collecting data on climate-related hazards and assessing the outcomes of adaptation actions, businesses can refine their strategies, identify lessons learned, and make informed decisions about future investments in resilience.
Leveraging Technology and Innovation
Incorporating advanced technologies into resilience strategies can significantly enhance an organization’s ability to anticipate and respond to climate risks. Tools such as climate modeling, data analytics, and early warning systems provide valuable insights that enable companies to make proactive decisions.
By utilizing these technologies, organizations can optimize their operations, improve resource management, and ultimately build a more resilient business model.
Services Offered By Climate Risk Consulting Firms
Climate risk consulting firms provide a wide array of services designed to help organizations understand, assess, and mitigate the impacts of climate change on their operations and strategies. These services are essential for businesses aiming to enhance their resilience in an increasingly uncertain climate landscape. Here’s an overview of the key services offered by these consulting firms:
Climate Risk Assessment
Consulting firms conduct comprehensive climate risk assessments to identify vulnerabilities within an organization. This involves evaluating both physical risks, such as extreme weather events and rising sea levels, and transition risks related to policy changes and market dynamics. By analyzing these risks, firms help clients understand their exposure and prioritize areas that require immediate attention.
Scenario Analysis
Many firms utilize scenario analysis to model potential climate-related outcomes and their financial implications. This process allows organizations to explore various climate scenarios and assess how different conditions could impact their operations and financial performance. By quantifying risks and opportunities under diverse scenarios, firms provide actionable insights that inform strategic planning and decision-making.
Climate Risk Strategy Development
Based on the findings from assessments and scenario analyses, consulting firms assist organizations in developing tailored climate risk strategies. These strategies outline specific actions to mitigate identified risks, set measurable targets, and prepare for regulatory disclosures. This strategic framework helps organizations align their operations with sustainability goals and enhances their overall resilience.
Adaptation and Mitigation Planning
Consultants work with organizations to design and implement adaptation and mitigation plans. These plans may include measures to enhance infrastructure resilience, optimize supply chains, and reduce greenhouse gas emissions. By identifying and measuring the effectiveness of these actions, firms help clients not only minimize their climate risk exposure but also capitalize on opportunities presented by the transition to a low-carbon economy.
Reporting and Compliance Support
With increasing regulatory requirements regarding climate disclosures, consulting firms provide support in preparing mandatory reporting documents that comply with frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD) and the Carbon Disclosure Project (CDP). This includes guidance on best practices for transparency and accountability in climate reporting, ensuring that organizations meet stakeholder expectations and regulatory standards.
Stakeholder Engagement and Training
Effective climate risk management often involves engaging various stakeholders, including employees, investors, and community members. Consulting firms offer training and workshops to enhance understanding of climate risks and foster a culture of sustainability within organizations. This engagement helps build internal capacity for addressing climate challenges and encourages collaborative approaches to resilience.
Technology and Data Analytics
Many climate risk consulting firms leverage advanced technologies and data analytics to enhance their services. This includes utilizing climate models, geographic information systems (GIS), and big data analytics to provide deeper insights into climate risks and opportunities. By integrating these technologies, firms can deliver more precise and actionable recommendations tailored to their clients’ specific needs.
12 Leading Climate Risk Consulting Firms
Climate Risk Services
Climate Risk Services is a company based in Amsterdam that specializes in helping financial institutions and corporations navigate the complex challenges posed by climate change and environmental risks.
Their mission is to assist organizations in becoming “climate-smart and nature-positive,” focusing on both the risks and opportunities that arise from climate change.
Portfolio and Asset Scans: Perform site-level scans of corporate assets to assess exposure to physical hazards like extreme weather events. Analyze nearby infrastructure and settlements to provide a comprehensive view of risks.
Scenario Planning and Strategy Development: Facilitate scenario planning workshops to explore plausible transition pathways and implications for core business drivers. Assist in developing climate-resilient and nature-positive strategies aligned with science-based targets. Identify potential vulnerabilities and define early warning indicators to monitor.
Training and Capacity Building:
Offer bespoke training to embed climate and nature risk management into key organizational processes
Provide disclosure support aligned with frameworks like TCFD, TNFD, and PCAF
Compliance and Disclosure Support: Ensure alignment with industry-standard disclosure frameworks like TCFD and TNFD recommendations. Assist with climate stress testing, carbon accounting, EU taxonomy implications, ISO 14091 specifications and other implementation challenges.
Maturity Assessments: Offer benchmarking assessments to determine organizational readiness to meet climate and nature-related regulatory requirements and disclosure standards
Climate Risk Services: Empower corporates to make future-proof decisions, maintain business continuity, and be part of the climate solution across sectors like mining, agriculture, and food & beverages.
ClimSystems
ClimSystems Ltd, based in Hamilton, New Zealand, is a prominent international provider of climate data and insights, specializing in climate risk management. Established over twenty years ago, the company is recognized as a FernMark company, reflecting its commitment to high-quality New Zealand-based services.
ClimSystems plays a critical role in assisting organizations with climate-related disclosures, particularly in compliance with New Zealand’s pioneering Climate Reporting Disclosure (CRD) laws, which require entities to report on climate change risks
Climate Risk Assessment: Utilizing their proprietary Climate Insights Database, they offer tools to assess site-specific climate impacts, helping asset owners effectively manage their climate risk exposure.
Consulting Services: The company delivers environment and climate-related consulting to various stakeholders, including international organizations, governments, and corporations.
Modeling Systems: They have developed stand-alone modeling systems designed for educational and research purposes, integrating scientific projections of climate change impacts.
Residential Property Reports: These reports cater to lenders, developers, insurers, and investors, detailing risks related to climate zones, earthquakes, precipitation, and other environmental factors.
Regulatory Compliance Support: ClimSystems supplies scientifically robust climate data necessary for organizations to produce regulatory disclosures and due diligence reports.
Flood Data Analysis: They provide critical flood data to assess value-at-risk and plan for adaptation strategies.
BMT
BMT Climate Risk Consulting is a specialized division of BMT, a maritime-oriented design and technical consulting firm. They focus on addressing complex climate-related challenges by providing expert advisory services aimed at enhancing resilience and sustainability for various sectors, including government, commercial maritime, and critical infrastructure.
Vulnerability and Risk Assessments: BMT conducts assessments to identify the exposure, sensitivity, and adaptive capacity of various systems to climate change. This helps in prioritizing adaptation measures for at-risk populations, ecosystems, and infrastructure.
Hazard Modelling and Mapping: They utilize climate data and models to simulate different climate scenarios, identifying areas at risk of climate-related hazards such as floods and droughts. This includes geographic information system (GIS) mapping to visualize risks.
Climate Resilience and Adaptation Planning: BMT collaborates with clients to develop strategies that enhance resilience against climate-related stresses. This involves proactive measures to reduce vulnerability and improve recovery capabilities.
Greenhouse Gas Accounting and Decarbonisation Advice: BMT provides services to measure and report greenhouse gas emissions, helping organizations identify reduction opportunities and transition towards a low-carbon economy. They also assist in achieving accredited ratings for sustainability efforts.
Training Programs: They offer training to enhance understanding of climate change impacts and risk management, equipping organizations with the knowledge needed for informed decision-making regarding climate-related investments.
Anthesis Group
Anthesis Group, is a global consultancy focused on driving sustainable performance across various sectors. Founded in 2013, Anthesis has rapidly expanded through numerous acquisitions and partnerships, establishing a presence in 25 offices across 16 countries.
The firm employs over 600 professionals and is recognized for its commitment to creating positive environmental and societal impacts through its services
Anthesis offers a comprehensive suite of climate risk consulting services designed to help organizations understand and manage the financial impacts of climate change.
Climate Risk Screening: Anthesis conducts assessments to identify the risks and opportunities that climate change poses to various areas within an organization. This helps pinpoint which risks will have the most significant impact.
Scenario Analysis: This service involves modeling the organization’s climate-related risks and opportunities under different climate scenarios. It provides quantitative insights into potential financial outcomes, helping organizations understand areas of concern.
Climate Risk Strategy: Anthesis collaborates with organizations to develop a strategic framework that outlines a path for setting and achieving climate-related targets. This strategy also prepares companies for necessary disclosures, aimed at minimizing risks while maximizing value.
Climate Mitigation & Adaptation: The firm supports organizations in identifying and measuring the effectiveness of actions required to mitigate climate risks and adapt to changes. This includes strategies for transitioning to a net-zero economy.
Engie
Engie Climate Risk Consulting, part of ENGIE Impact, focuses on assisting organizations in navigating the complexities of climate change and achieving their sustainability goals.
With a strong emphasis on decarbonization, the consultancy aims to help businesses develop comprehensive strategies to mitigate climate risks while capitalizing on opportunities within their operations.
Climate Risk Assessment: Engie provides rigorous assessments to identify and analyze climate-related risks that could impact business operations. This includes evaluating vulnerabilities to extreme weather events and integrating these insights into strategic decision-making.
Decarbonization Strategies: The consultancy designs custom, data-driven decarbonization plans tailored to the unique needs of each client. This involves setting science-based targets, developing roadmaps, and implementing governance structures to support sustainability initiatives.
Internal Carbon Pricing: Engie assists organizations in establishing and integrating internal carbon pricing mechanisms, which help inform operational and strategic decisions aimed at reducing emissions.
Greenhouse Gas (GHG) Inventory: They help clients build a comprehensive GHG inventory, enabling organizations to identify their emissions hotspots and prioritize reduction efforts across their value chain.
Scenario Analysis and Digital Tools: Engie utilizes advanced tools for scenario analysis, enabling clients to make informed strategic decisions that align with both sustainability and profitability goals.
Support for Corporate Power Purchase Agreements (PPAs): Engie is active in facilitating corporate PPAs, helping organizations secure renewable energy sources to meet their sustainability targets.
Boston Consulting Group
Boston Consulting Group (BCG) is a leading global management consulting firm founded in 1963 and headquartered in Boston, Massachusetts. It is recognized as one of the “Big Three” consulting firms, alongside McKinsey & Company and Bain & Company. BCG specializes in business strategy, helping organizations innovate and achieve sustainable competitive advantages across various sectors.
BCG’s Climate Risk Consulting focuses on helping organizations address the challenges posed by climate change and environmental sustainability. This service is part of BCG’s broader commitment to sustainability and societal impact, which has been highlighted in their annual sustainability reports.
Climate Risk Assessment: BCG collaborates with governments and corporations to evaluate their exposure to climate risks. This includes identifying vulnerabilities in infrastructure and operations, quantifying potential financial impacts, and developing tailored risk mitigation strategies.
Adaptation and Resilience Strategies: BCG assists clients in formulating adaptation and resilience (A&R) plans that address both immediate and long-term climate challenges. This involves creating action plans that prioritize investments in infrastructure and operational changes necessary to withstand climate impacts.
Financing Climate Initiatives: Recognizing the significant funding gap for climate adaptation efforts, BCG helps clients identify and mobilize financial resources to support their A&R initiatives.
Strategic Consulting for Sustainability: Beyond climate risk, BCG integrates sustainability into broader business strategies, helping organizations embed sustainable practices across their operations.
Collaboration with Global Initiatives: BCG has partnered with international organizations, including the UN Climate Change High-Level Champions, to contribute to global climate action frameworks.
Guidehouse
Guidehouse is a prominent consulting firm based in Tysons, Virginia, specializing in advisory, digital, and managed services for both public and commercial sectors.
The firm emerged from the public sector consulting arm of PricewaterhouseCoopers (PwC) when it was acquired by Veritas Capital in 2018. Since then, Guidehouse has expanded significantly, notably through its acquisition of Navigant Consulting in 2019, which helped solidify its position in the consulting market
Climate Risk Solutions: Guidehouse’s climate risk solution aids clients in identifying, measuring, monitoring, and managing their climate-related financial risks (CRFR).
They conduct assessments aligned with regulatory changes, such as those proposed by the New York Department of Financial Services, and assist clients in integrating climate risk into their governance and business strategies.
Scenario Analysis and Stress Testing: Guidehouse employs climate scenario analysis to help clients identify and manage climate risks effectively.
This includes evaluating the resilience of business models, identifying vulnerabilities, and estimating exposures across various time horizons to determine the materiality of climate risks.
Nature-Related Risk Integration: Guidehouse assists companies in incorporating nature-related risks and opportunities into their climate risk management strategies.
Their services align with frameworks like the Taskforce on Nature-related Financial Disclosures (TNFD), helping clients assess and manage nature-related impacts as part of an integrated management approach.
Supply Chain Risk Management: Guidehouse provides tools and services for supply chain risk management, enabling organizations to gain insights into climate-related risks within their vendor networks. They focus on helping clients identify and mitigate these risks to enhance overall supply chain resilience.
Partnerships for Climate Risk Assessment: In partnership with Jupiter Intelligence, Guidehouse offers climate risk assessment services specifically tailored for utilities.
ERM
ERM (Environmental Resources Management) is a leading sustainability consulting firm headquartered in London, UK. Established in 1971, it has grown to become the largest firm of its kind globally, with a presence in over 40 countries and more than 160 offices worldwide. ERM specializes in environmental, health, safety, risk, and social consulting services, primarily targeting both private and public sector clients.
Climate Risk and Scenario Analysis: ERM utilizes its Climate Impact Platform, which integrates data from its Global Climate Database to provide actionable insights on climate risks.
This platform enables businesses to assess the potential impacts of climate change across different scenarios and timeframes, facilitating informed decision-making about risk management and operational resilience.
Risk Management Framework: ERM emphasizes a proactive approach to climate risk management, integrating climate-related risks into broader enterprise risk management processes. This includes conducting strategic assessments that cover various risk dimensions—operational, financial, regulatory, and reputational.
Alignment with TCFD Recommendations: ERM assists clients in aligning their climate risk disclosures with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
Net Zero Strategy Development: In response to the global push towards sustainability, ERM supports clients in developing actionable net zero strategies. ERM focuses on embedding climate considerations into business models and operational practices to enhance performance and reduce risks associated with climate change.
Continuous Engagement and Learning: ERM promotes ongoing engagement with stakeholders to refine risk management processes and ensure that climate risk assessments remain relevant and effective.
South Pole
South Pole is a global climate consultancy that provides comprehensive sustainability solutions and services to help organizations create value from sustainability-related activities. Founded in 2006 by five young social entrepreneurs, South Pole has grown to become one of the world’s leading providers of climate solutions with offices around the globe.
Climate Risk and Opportunities Analysis: South Pole utilizes the latest climate model data to perform scenario analyses identifying physical and transition risks. This service helps businesses develop a roadmap tailored to their needs, enhancing resilience against climate-related challenges.
Interactive Climate Risk Tool: This tool allows companies to quickly assess their climate risks and meet mandatory reporting requirements, such as those outlined by the Task Force for Climate-related Financial Disclosures (TCFD). It simplifies the data collection process and provides TCFD-aligned results, facilitating compliance with emerging regulations.
Scenario Analysis and Risk Mitigation: South Pole conducts in-depth scenario-based assessments to pinpoint key climate risks and opportunities. This includes evaluating potential impacts on business operations and developing strategies for risk mitigation and adaptation.
Integration of Climate Risks into Business Strategy: Beyond assessment, South Pole helps organizations integrate climate risks into their core business processes, including risk management and strategic planning. .
Education and Capacity Building: The firm provides training and workshops to improve understanding of climate risks and enhance the skills necessary for effective climate action.
Support for Regulatory Compliance: South Pole assists businesses in navigating mandatory reporting requirements related to climate risks, ensuring they are prepared for current and upcoming regulations, such as the EU’s Corporate Sustainability Reporting Directive (CSRD) and other international frameworks.
WTW
WTW, formerly known as Willis Towers Watson, is a prominent global advisory, broking, and solutions company established in 1828, with its headquarters located in London, United Kingdom. The firm serves over 140 countries and employs more than 46,600 professionals.
Climate Risk Solutions: WTW’s Climate Risk Solutions integrate ESG resources to assist clients in analyzing and quantifying their climate-related risks. The service utilizes predictive climate analytics and scientific expertise to develop tailored solutions for mitigating and transferring these risks, ensuring organizations can effectively manage their exposure to climate uncertainties.
Climate Quantified: This Software as a Service (SaaS) tool provides precise quantification of the financial impact of climate change on a company’s operations, assets, and supply chain. By combining advanced climate data with risk engineering, Climate Quantified enables organizations to assess both physical and transition risks, facilitating informed strategic and operational decisions.
Climate Diagnostic: The Climate Diagnostic service offers a detailed analytical view of physical climate risk exposures, utilizing recognized models to evaluate climate change impacts on global assets. This service delivers critical insights into high-risk areas and asset locations, enhancing risk management and reporting capabilities for organizations.
Physical Climate Risk Assessment: This assessment quantifies the effects of various acute and chronic physical climate hazards over multiple emissions scenarios up to 2050. It translates these hazards into financial metrics, providing organizations with in-depth analysis, predictive modeling, and vulnerability assessments to optimize their risk management strategies.
Environmental Risk Assessment: WTW’s Environmental Risk Assessment evaluates an organization’s environmental management systems according to ISO 14001 standards and estimates potential environmental liability losses from single risk events. This service aids investors and financial institutions in verifying the ‘green’ credentials of prospective clients, ensuring informed decision-making.
EcoAct
EcoAct is an international sustainability consultancy and project developer that helps businesses and organizations succeed in their climate ambitions. Headquartered in Paris, France, EcoAct has over 360 employees across offices in France, the United Kingdom, Spain, the United States, Canada, and Kenya.
Climate Risk Analysis: EcoAct’s Climate Risk Analysis service assists businesses in identifying areas vulnerable to climate risks through collaboration with key stakeholders. By employing tailored qualitative and quantitative assessments,
EcoAct helps prioritize these risks and opportunities, enabling organizations to set actionable targets and develop strategies to mitigate risks while capitalizing on potential benefits.
EcoAct Climate Risk Platform: The EcoAct Climate Risk Platform evaluates the vulnerability of an organization’s physical sites to 28 climate change hazards, providing comprehensive oversight of exposure across various scenarios and time horizons.
This platform models both common risks, such as floods and heat waves, and less frequent risks, like glacial lake outburst floods, aligning with TCFD and CDP frameworks to support proactive climate adaptation and mitigation strategies.
Scenario Analysis: EcoAct’s Scenario Analysis service forecasts potential climate impacts on businesses under various uncertainties, aiding in the development of net-zero strategies.
By leveraging the latest climate science from authoritative sources like the IPCC, this service enhances climate-related financial disclosures, ensuring organizations are well-prepared for future climate challenges.
Baringa
Baringa Partners is a prominent consulting firm specializing in energy, financial services, utilities, telecoms, and media. It has established a strong reputation for its expertise in business transformation and technological innovation.
With over 1,300 employees and a presence in 15 locations globally, Baringa has positioned itself as a leader in the consulting landscape, focusing on creating lasting impact for its clients through a people-centric approach.
Climate Risk Consulting: Baringa provides advisory services that help organizations understand and manage climate and biodiversity risks. They assist in embedding climate strategies into daily operations and decision-making processes, particularly for financial institutions committed to net-zero targets.
Climate Vulnerability Assessment (CVA): This service helps banks identify and quantify actions to mitigate climate risks. The CVA is part of a regulatory initiative to understand the financial impacts of climate change, allowing banks to integrate climate risk into traditional risk modeling.
Scenario Analysis: Baringa employs climate scenario analysis to enable organizations to evaluate potential financial impacts under various climate scenarios. This includes the use of BlackRock’s Aladdin Climate platform for real-time risk assessments and scenario modeling.
Base Case Climate Scenario: Their subscription service provides bespoke short-term climate scenarios that can be integrated into capital adequacy assessments and financial reporting. This service helps organizations understand the transition outlook and identify gaps in their strategies relative to climate targets.
Training and Capability Building: Baringa emphasizes the importance of upskilling internal teams on climate risk management and providing sector-specific training and resources to enhance understanding and engagement with climate issues.
Regulatory Compliance Support: With increasing regulatory pressures, Baringa helps firms navigate compliance with evolving climate-related disclosure standards, ensuring that their climate risk frameworks align with regulations such as the Taskforce for Climate-related Financial Disclosures (TCFD) and the International Sustainability Standards Board (ISSB) guidelines.
In Summary
The intensifying effects of climate change have propelled businesses worldwide to prioritize climate considerations in their strategic planning.
A 2022 CDP study revealed that 215 of the world’s largest companies reported nearly $1 trillion at risk from climate impacts, with many of these risks expected to materialize within the next five years.
Against this backdrop, leading climate risk consulting firms are guiding businesses through the intricacies of climate-related financial planning, from developing net-zero strategies to conducting comprehensive climate stress tests.
Business leaders who fail to implement real-time climate risk strategies today risk leaving their companies obsolete tomorrow. Taking decisive action now will ensure your organization’s resilience in the face of unprecedented environmental challenges.
Frequently Asked Questions
What is the difference between climate change and global warming?
Global warming specifically refers to the recent increase in Earth’s average surface temperature due to rising greenhouse gas levels, while climate change encompasses a broader range of changes in climate patterns, including global warming and its effects.
How do climate consultancies help organizations?
Climate consultancies provide expertise in assessing climate risks, developing adaptation strategies, and implementing sustainability practices to help organizations mitigate their environmental impact and comply with regulations.
How can businesses assess their climate risk?
Businesses can assess climate risk by conducting vulnerability assessments, analyzing supply chain impacts, and integrating climate considerations into their strategic planning processes.
What are the economic impacts of climate change?
Climate change can lead to significant economic losses through damage to infrastructure, increased healthcare costs, and reduced agricultural productivity, which can disproportionately affect low-income communities.
What should I look for when choosing a climate risk consultancy?
When choosing a climate risk consultancy, look for:
- Expertise in climate science and risk assessment
- Experience working with businesses in your industry
- A track record of delivering successful climate risk management projects
- Alignment with your business values and goals
- Ability to communicate complex climate-related issues clearly
How much does climate risk consulting cost?
The cost of climate risk consulting can vary depending on the scope and complexity of the project, the size and location of your business, and the specific services required. Many consultancies offer customized pricing based on your needs.
References
McKinsey Sustainability: Climate risk and response
United Nations: 2024 Climate Risk Landscape Report
Journal of Multinational Financial Management: Climate Change Exposure, Risk Management and Corporate Social Responsibility
PWC Global: Time to get serious about the realities of climate risk
