Climate change is rapidly emerging as a threat to the financial stability of your business. More frequent and severe weather events are damaging infrastructure and disrupting supply chains. The transition to a low-carbon economy is bringing new policies, regulations and rapid changes to market dynamics. And some carbon-intensive companies are already facing lawsuits over their contributions to climate change. Together, these trends threaten to impose serious financial risks to companies and their investors, lenders and insurers.
Given the importance of forward-looking assessments of climate-related risks and opportunities, climate scenario analyses are often applied to assess potential business implications of climate-related risks and opportunities.