CLIMATE CRISIS MANAGEMENT

Every company has a direct or non-direct (within its value chain) impact on climate change. Each company is also exposed to the climate-related risks. Awareness of these impacts and their proper management may constitute “to be or not to be” of the company in the coming years.

Some of the services described below are a direct answer to the needs of investors and the EU regulator. Some, on the other hand, help the board to identify which risks may affect company in immediate future, what opportunities it may use and what changes in the business model should be implemented to make the company more resilient in future.

What we do regarding mutual impacts of the company and climate change:

IDENTIFYING CLIMATE-RELATED RISKS AND OPPORTUNITIES

We conduct an analysis of the company’s operating activity and its value chain in order to identify the risks and opportunities belonging to two of the following categories:

• physical risks and opportunities (both regarding sudden and chronic weather phenomena, resulting from climate change in the medium and long-term effects)
• transition risks and opportunities (resulting from new regulatory requirements, public policies, technological, market and social changes)

Identified climate-related risks and opportunities are presented in the form of a map, accompanied by a set of recommendations regarding mitigation of threats and ways to build upon opportunities. This service may also be enriched by extending the company’s current risk management system with climate-related issues.

ACCOUNTING AND REPORTING GREENHOUSE GAS EMISSIONS

Both investors who adopt the recommendations of Task Force on Climate-related Financial Disclosures and the European Commission’s Guidelines expect all the companies to fully report the greenhouse gas emissions, i.e., in all three scopes (Scope 1, 2, 3). We support the companies on each level of identification of emission sources, data collecting and accounting for emissions. We use GHG Protocol Corporate Accounting and Reporting Standard or ISO 14064-1:2018 standards. Calculation of the emissions from sector 1 and 2 may be either a one-time or a cyclic service. Calculation in sector 3, i.e., the emissions of the entire value chain of the company is a process that starts from mapping the value chain and progressive improvement of the accuracy of collected data in a long-term perspective.

SCENARIO ANALYSES

As part of scenario analyses, we examine the resilience of the company’s business model and its strategy to external factors in various selected and specific climate change scenarios. These analyses are a tool that both investors (TCFD recommendations) and the regulator (EC Guidelines) expect to be used by the company’s management. The result of our scenario analyses is a complete set of data, information and recommendations for the company’s management board that can be used in making strategic decisions.

CLIMATE STRATEGIES AND POLICIES

Collecting even the most accurate information on climate-related risks and opportunities and data on greenhouse gas emissions is only the first step in developing the company’s climate change policy or strategy. These types of action plans are already required by most owners and asset managers who make their investment decisions based on, inter alia, the knowledge about the extent to which the company will implement the goals of public climate policies (e.g., the Paris Agreement). Working with company management boards, we support decision-makers in setting goals, adapting them to the company’s conditions, the industry and the external environment, selecting the right implementation tools and helping to monitor the status of strategy implementation.