Climate Risk Assessments
Are you prepared for the transitional and physical risks associated with climate change? Are you in scope to report to California SB261? 3R’s expert climate team will work with you to identify the climate-related risks across your organization, so you can become climate resilient.
Enhance your organization’s resilience against climate-related risks
Identify potential opportunities for growth
Be prepared for any upcoming regulatory requirements
Foster a culture of climate awareness throughout your organization
Your path to climate resilience
3R will analyze your organization’s transitional and physical risks and map these risks across different warming scenarios. We’ll help you understand both the current and future states of your business while looking to proactively manage changes in regulation, customer requests, or markets.
Our climate risk assessment also incorporates your organization’s current projects and initiatives to realistically determine the severity of impact that these different risks may pose. Reach out to us if you’re curious to know more about what potential climate-related risks and opportunities your organization could face.
Our approach
Our climate risk assessments have four main criteria points that are included in every analysis we conduct:
- Reporting boundary – defines what parts of the organization have been included within the assessment
- Framework and standard – notes the framework and/or standard that was used to assess the climate-related risks and opportunities within the assessment
- Transition risks – covers business-related risks, analyzed under a low-warming and high-warming scenario
- Physical risks – covers acute and chronic risks, analyzed under a low-warming and high-warming scenario
After we complete our assessment, we will create a detailed overview that includes the key findings, methodology, and any immediate next steps.
Example of 3R’s approach: California Climate Disclosure
Identify climate-related risks using IFRS S2 / TCFD: This is an initial qualitative assessment to identify applicable climate-related risks covering transition and physical. This will allow for the identification of any risks that are deemed to be medium to high in terms of likelihood and could have a material impact.
Determine financial materiality of risks: Once initial risks have been identified, it will be critical to determine whether any of these risks are financially material to the client, as required by SB 261. This will include estimating the potential financial impact of the climate-related risks and working with the client’s risk management team to determine whether they are considered material.
Create climate risk report and training: As currently written, SB 261 requires an organization to disclose its climate risks, publicly, on its website. The content from the report created by 3R will be able to be used on the client’s website. This report will include the key findings, methodology, and opportunities for adaptation/mitigation efforts.
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“3R was wonderful to work with… they made a complex process easy to understand and feel conquerable every step of the way—so grateful to have partnered with them!”
—3R Client