Climate change risks and opportunities research

Recently, in order to mitigate and adapt to the impact of climate change on business operations and development, as well as to create more opportunities for businesses, various domestic and international regulators have increasingly focused on climate-related disclosures by companies. Since its establishment in 2017, the Task Force on Climate-related Financial Disclosures (TCFD) has continued to provide a framework for the global financial industry to regulate the climate-related impacts of companies, continuously updating its guidance for companies to carry out climate-related work, requiring companies to improve the management of climate-related issues in four areas: governance, strategy, risk management, and indicators and targets. Regularly identifying, analyzing and managing climate change risks and opportunities will become an integral part of a company's business development process.

Background and Necessity：

While global climate change seriously affects business development, it also presents extraordinary growth opportunities for companies, which can be described as risk and opportunity coexist. The climate change risks faced by companies can usually be classified as physical risks and transition risks. The former is the risk of physical and potential economic loss due to more dramatic and frequent climatic or environmental events caused by climate change. The latter can be understood in three main ways: (1) policies or measures introduced to mitigate climate change will create a more stringent regulatory environment that may affect some high-emitting industries, technologies or products; (2) emission reduction technologies continue to develop and advance, and traditional technologies and products may be subject to substitution pressure; and (3) preference changes of investor and consumer may lead to market changes. Despite these challenges and adverse impacts, global climate change offers new opportunities for businesses and investors are paying more attention to the economic impact of climate change on investment projects. Companies that seize the climate-related opportunities will undoubtedly be able to take the lead in the process of low carbon transition in the global market.

Service Content：

  1. Identify climate-related risks and opportunities
  2. Analysis of climate-related risks and opportunities
  3. Identify climate-related risk response options
  • Assist companies to identify climate-related risks/opportunities
  • Enhance the ability of companies to identify climate-related risks/opportunities
  • Physical risk analysis based on capacity/asset location
  • Physical risk analysis of key elements of the value chain
  • Industry transition risk analysis
  • Transition risk analysis of key elements of the value chain
  • Transition scenario analysis
  • Assist companies in understanding their exposure to climate change
  • Assist companies in developing risk monitoring and response programs

Effectiveness and Significance：

  1. Assist companies in building awareness of climate change related risk management
  2. Assist companies to develop climate change-related risk management capabilities
  3. Assist companies to seamlessly access the TCFD framework and make compliance disclosures on climate-related financial informationRisk and Opportunity

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