Risk and Resilience

Risk is driven by extrinsic change (current and future) and intrinsic vulnerability. Change can’t always be avoided or mitigated, but vulnerability can be. The opposite of vulnerability is resilience, the process of building and maintaining the capacities to absorb shocks, incrementally adapt to change that is already happening and transform in response to severe impacts.…

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Climate Change Adaptation

Businesses can reduce their vulnerability to uncertain climate-related risks by embedding flexibility into their strategy, which also enables them to take advantage of opportunities as they arise. Best practice is to build adaptive capacity following the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD), which involves testing the business under a range of scenarios.…

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Climate-related Scenarios

Scenarios are non probabilistic pathways and projections built on assumptions. They represent imagined plausible futures and can be global or local, climate-related, socioeconomic or integrated, with or without policy dimensions. Businesses should stress test their strategy across different climate-related scenarios as part of the process of building capacity to incrementally adapt to ongoing climate-related change.…

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