A strategic approach to climate risk analysis

Managing business exposure to climate risk is a board level priority. But to build a resilient business, understand opportunities and drive value for the future you need to act beyond simply meeting climate disclosure requirements. 

Regulatory change, stakeholder engagement, and the manifestation of climate risk is driving the need for organisations to embrace forward looking analysis to support them in their strategic decision making. KPMG’s Climate IQ tool has been designed to address these needs and more.

Our solution

KPMG Climate IQ is a multi-industry risk management tool that can run multiple scenarios to address the questions you have around your company’s exposure to climate change. And in doing so help you to formulate strategic decisions and in doing so help you to make decisions on your business' strategy based on individual needs and regulatory requirements. The tool is able to globally assess your physical and transitional risks on a bespoke or an automated basis including:

Climate IQ can assess your exposure to physical risks of climate hazards and well as the economic impacts of the transition to a low-carbon state.

  • Data simplification and selection of scenarios to assess metrics that matter most to your business
  • Impact of different risks on selected performance indicators
  • Analysis of the rate of change of various risks under different time horizons and severity thresholds
  • Dynamic visual mapping of risks under different climate change scenarios

Our Climate IQ tool enables companies to identify, quantify and manage their physical and transition risks due to climate change and understand the impacts these have on their business, supporting more effective board-level strategic decisions

Get in touch today to find out how we can help you with climate risk analysis.

What are the benefits?

TCFD Compliant

Climate IQ incorporates comprehensive assessment of all climate-related issues required by the TCFD guidelines and industry expectations, enabling users to evolve in line with market expectations.

Science driven

Climate IQ is underpinned by a Nobel prize winning Integrated Assessment Model which draws upon the best of climate science as established by the Intergovernmental Panel on Climate Change (IPCC) to inform economy wide outcomes.

Range of pathways

Climate IQ enables multiple scenarios to be run including 1.5, 2 and 4 degrees scenarios to understand the preparedness of a business model under a range of potential outcomes.

Global output

Climate IQ quantifies the impact of systemic economic impacts across global operations and supply chains covering 141 regions and 65 sectors.

Market leading modelling

Climate-IQ incorporates physical damage projections and climate models from market leading and industry approved providers.

Continual analysis

Climate IQ enables ongoing analysis using existing data and modelling capabilities saving time, cost and effort. The modular approach can also be adapted to suit the needs of individual organisations.

Cloud-based technology

This solution can process large datasets at scale, allowing for simulations of multiple scenarios and sensitivity analyses of financial projections. Climate-IQ uses a data repository compatible with machine learning and Artificial Intelligence.

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