Impact of Climate Risks on Business, Strategy and Financial Planning
We help you describe how climate related risks and opportunities affect your businesses, your strategy and your financial planning
What this element is and why it matters
TCFD Strategy Disclosure (b) asks your organisation to describe how climate related risks and opportunities affect your businesses, your strategy and your financial planning. That reaches into your products and services, your supply chain, your adaptation and mitigation activities, your research and development, your operations and your access to capital. Our team helps you trace each of these impacts.
Individual significance for organisations
Disclosure S b is where TCFD reporting moves from theoretical to operational. Investors look here for evidence that climate considerations genuinely shape your capital allocation, your M and A decisions and your product strategy.
Contribution to Climate Risk and TCFD and ISSB S2 Aligned Disclosure
Disclosure S b operationalises S a by translating the risks and opportunities you identified into specific business decisions. It also feeds the scenario analysis in S c and informs the quantification work in Metrics and Targets.
What compliant execution looks like
How we implement this element
A focused six step methodology calibrated to deliver impact of climate risks on business, strategy and financial planning as a working capability rather than a documented compliance artefact.
For each business unit we assess the climate risk and opportunity impact and quantify the revenue, cost and capital exposure wherever the data allows.
We map climate risks across your tier one and tier two suppliers, identify the single point exposures and quantify the cost of mitigating them.
We identify the research investments that address climate, such as low carbon products and adaptation services, and document the strategic intent behind them.
We quantify the operational impacts across energy efficiency, water stress, carbon pricing exposure and the cost of regulatory compliance.
We assess your access to green and blended finance, the trajectory of your insurance cost, the implications for your credit rating and the availability of transition loans.
We author S b to TCFD, integrate it with the financial commentary in your annual report and align it with the IFRS S2 linkage to your financial statements.
Element implementation flow chart
A decision gated workflow that shows the actual sequence of activities from initiation through steady state operation, with key decision points highlighted.
What we produce
- A business line climate impact register
- A supply chain climate exposure map
- Disclosure S b content to TCFD
- A financial effect quantification linked to your financial statements
- An internal carbon price policy with application guidance
- A climate adjusted capital allocation summary
Where execution fails
- Impact described qualitatively with no quantification behind it
- Supply chain exposure that is never assessed beyond tier one
- Capital access impact that is never connected to actual financing decisions
- No linkage to the financial statements even though IFRS S2 requires it
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 Impact of Climate Risks on Business, Strategy and Financial Planning
We can scope this element implementation against your facility, regulatory context, and existing management system maturity, then integrate it with the other Climate Risk and TCFD and ISSB S2 Aligned Disclosure elements you already operate.