Climate Scenario Analysis for a Listed Company

Climate-related Scenario Analysis

GreenCo has recently assisted a listed company in conducting a climate scenario analysis for their enhanced climate-related disclosures with reference to the Task Force on Climate-related Financial Disclosures (TCFD) recommendations and International Financial Reporting Standards (IFRS) S2 Climate-related Disclosures. Scenario analysis is also a well-established tool as it helps the company understand how potential climate risks and opportunities could evolve and impact their business, thereby developing flexible strategic plans to a range of plausible future states.

Developing and Applying Model

Based on the principles of high contrast, balanced and science-based, GreenCo helps the company to identify and define two types of climate pathways: 1) a stringent pathway leading to high transition risks; and 2) a high emissions/ business-as-usual pathway leading to high physical risks. Depending on the business nature of the company, GreenCo conducts benchmarking and develops social-economic assumptions for the company by combining its operation locations, business activities and publicly available data. In addition, GreenCo explores different climate-related models and projections to illustrate the environmental, social and technological changes (e.g., temperature and precipitation pattern, carbon price, application of renewable energy) as well as economic development (e.g., GDP growth) in the future. For instance, GreenCo helps the company identify the proportion of its property at high flooding risk based on the sea level rise and coastal flood risk maps.

Assess Risk and Opportunities

By leveraging the expertise of its team, GreenCo guides the company in fully understanding and assessing potential business implications, financial risks and opportunities arising from climate change, thereby formulating response action and transition plans to address the material risks. By offering professional and tailored services, GreenCo is committed to supporting the company in leading the climate disclosure and accelerating green transformation in response to climate change.

About GreenCo

GreenCo is a professional ESG advisory firm accredited with ISO 9001 in ESG Reporting and Climate Policy Advisory Services. Established in 2016, we were born to tackle ESG and climate risk management challenges. GreenCo has a professional team consists of talents with multiple backgrounds with

  • PhD
  • Practitioner Member of the Institute of Environmental Management and Assessment (IEMA)
  • CFA (the CFA Institute) and Certificate in ESG Investing
  • EFFAS Certified ESG Analyst (CESGA)
  • Completion of Certified GRI Training Programme
  • Certified Public Accountant (for assurance in accordance with ISAE 3000)
  • Member of Global Association of Risk Professionals
  • Master’s degree in envirnomental science

GreenCo has solid track record in ESG advisory for over 60 listed companies in Hong Kong, Mainland China, Singapore and Korea, covering all industries under the Hang Seng Industry Classification System.