THE BRANDS: Hallmark, Crayola

THE SITUATION: Climate scenario analysis can help companies assess the business implications of climate-related risks and opportunities. While some organizations choose to disclose the results of climate scenario analysis publicly — often in the form of a TCFD aligned sustainability report —  others choose not to publish their findings externally. Regardless, the exercise can be invaluable in informing future enterprise risk planning and sustainability strategy development. 

THE SOLUTION: Including a representative cross-section of organizational stakeholders in the process of climate scenario analysis helped to ensure accuracy and completeness of risks and opportunities considered. TCFD’s reporting framework outlined the process at a high-level, while select climate scenarios from the Intergovernmental Panel on Climate Change (IPCC) provided some of the necessary assumptions regarding future scenarios. Quantifying the resulting risks and opportunities required input from additional stakeholders in finance and enterprise risk management, as well as input from external sources including insurers and the incorporation of third party data and industry reports. The resulting analysis was delivered to executive leadership and presented to the board of directors for use in future planning and strategy. 

MY ROLE: Senior Strategist (co-lead)

• Executive interviews

• Workshop pre-read and stimulus development

• Workshop facilitation

• Summary and quantification of risks and opportunities

• Final report and recommendations for risk monitoring and management