Climate Related Risks and Opportunities (Short, Medium and Long Term)
We help you describe the climate related risks and opportunities you have identified across the short, medium and long term
What this element is and why it matters
TCFD Strategy Disclosure (a) asks your organisation to describe the climate related risks you have identified, both the physical ones that are acute or chronic and the transition ones spanning policy, technology, market and reputation, alongside the opportunities in resource efficiency, energy source, products and services, markets and resilience. We work through all of these with you across the short term of one to three years, the medium term of three to ten years and the long term of ten years and beyond.
Individual significance for organisations
Disclosure S a is the most foundational of all the TCFD disclosures because it defines the risk universe that everything else rests on. Without rigorous identification at this stage, the rest of your TCFD report is little more than decoration.
Contribution to Climate Risk and TCFD and ISSB S2 Aligned Disclosure
The outputs of S a feed your impact assessment in S b, your scenario resilience work in S c and your risk identification process in RM a. They also inform the Metrics and Targets pillar by establishing exactly what you need to measure.
What compliant execution looks like
How we implement this element
A focused six step methodology calibrated to deliver climate related risks and opportunities (short, medium and long term) as a working capability rather than a documented compliance artefact.
Working from the TCFD Annex, we map your physical and transition risks alongside your opportunities and align them with the NGFS scenarios and IPCC AR6.
We map your asset locations to their physical risk exposures such as flood, wildfire, water stress and sea level, drawing on Aqueduct, ThinkHazard or an equivalent source.
We catalogue your policy risks such as carbon pricing and regulation, your technology risks such as substitution and disruption, your market risks from shifting demand and your reputation risks.
We catalogue the opportunities in resource efficiency, in low carbon products and services, in market expansion and in resilience.
We apply the short, medium and long horizons of one to three, three to ten and ten years and beyond per TCFD and align them with your corporate strategic planning cycle.
We author S a to TCFD, integrate it with your annual report and align it with IFRS S2 and CSRD ESRS E1.
Element implementation flow chart
We run climate related risks and opportunities (short, medium and long term) as a gated sequence rather than a checklist. Where the work reaches a gate it goes forward or back on what the step before it found, and it is the gates that decide whether the element holds.
What we produce
- A climate risk register organised by TCFD risk type
- An asset and geography physical risk map
- Disclosure S a content to TCFD
- A transition risk catalogue spanning policy, technology, market and reputation
- A double materiality assessment matrix per ESRS E1
- An opportunity longlist tagged by time horizon
Where execution fails
- Time horizons that are not aligned with your strategic planning cycle
- Physical risks identified only at portfolio level rather than asset by asset
- Opportunities ignored so that only risks ever get documented
- A single warming pathway screened with no Hot House sensitivity
Codes this element is built on
Explore related elements in this framework
Climate Risk and TCFD and ISSB S2 Aligned Disclosure full element index
Talk to us about implementing Climate Related Risks and Opportunities (Short, Medium and Long Term)
We will come back with the gap against the standard, the work it would take to close it and how it lands against the elements around it. Tell us the site and which Climate Risk and TCFD and ISSB S2 Aligned Disclosureelements you already operate.