Scenario Analysis
Carbon & ClimateClimate scenario analysis is a strategic planning tool that assesses how different climate futures (e.g., 1.5°C, 2°C, 3°C+ warming) could impact an organisation's strategy, operations, and finances. It evaluates physical risks (extreme weather, resource scarcity) and transition risks (carbon pricing, technology disruption, regulatory change) under multiple scenarios. Required by TCFD, ISSB (IFRS S2), and CSRD, it helps boards understand climate resilience and inform capital allocation decisions.
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