Understand your climate risks and prepare for the future with a climate risk assessment

A strong example of why climate risk matters to companies is the surge in extreme weather events, causing direct financial losses and operational disruptions across industries.

In 2023, Hurricane Otis devastated Acapulco, Mexico, damaging 80% of hotels and causing an estimated $16 billion in losses. Wildfires in Los Angeles led to $250–275 billion in economic damages, heavily impacting local businesses. These events are not isolated: global insured losses from natural disasters have exceeded $100 billion annually for five consecutive years, with 2024 expected to be the hottest year on record.

Sources: Climate hazards are reshaping business realities and responses | World Economic Forum, Allianz Risk Barometer 2025 - Climate change | Allianz Commercial

What is a Climate Risk Assessment?

A climate risk assessment is a structured analysis of the physical and transition risks related to climate change for a company.

Physical risks have a direct impact on physical assets, such as flood risks to assets exposed to rising sea levels or wildfire risks for assets exposed to drought areas.

Transition risks relate to changes connected to a transition towards a low-carbon economy. This includes changes in the market, policies and changes in legislation or reputational risks. Examples are increased carbon taxes or substitution of existing products and services with lower emissions options.

This comprehensive analysis helps companies understand how their assets and their business model are exposed to climate risks. With this information, companies can react proactively with risk mitigation or prepare their business model for upcoming changes. These practical insights help companies prepare to meet stakeholder expectations, protect their future value and align with ESG standards, such as VSME or CSRD.

Why it matters now?

Climate risk is not just an environmental issue anymore. It can have huge impacts on your financials, operations and reputation.

• Stand out in access to finance: Banks are embedding sustainability criteria in their decision-making and are looking to de-risk their portfolios, actively avoiding companies without a clear ESG or climate strategy. Investors, lenders, and insurers are now factoring in climate risk exposure when assessing a company’s future viability.

• Meeting stakeholder information requests proactively: Customers and business partners are asking for reports on climate risks, even if there is not a legal requirement yet. Even companies outside the scope of CSRD can be asked to provide climate-related information.

• Be more competitive in tenders: Tenders go beyond price and quality; they increasingly include sustainability criteria as well. Showing that you understand climate risks and address them helps you score high and positions you as a credible partner.

• Long-term value creation: Creating a strategy for a resilient business model enables you to make smarter investments. Using a fact-based approach to risk management sets your business up for success in the long term.

What will you get from a climate risk assessment?

• Climate risk register for physical and transition risks: A structured inventory of your company’s most significant physical risks (like floods or heatwaves) and transition risks (such as regulatory changes, new carbon taxes, or market shifts). Each risk is clearly described, prioritized by likelihood and potential impact, and linked to specific assets, operations, or business units. This register gives you a clear, actionable overview of where your business is most vulnerable, helping you focus resources on what matters most.

• Identification of climate-related opportunities: Analysis of potential opportunities arising from climate change, such as new markets, products, or services that align with shifting consumer preferences or emerging regulations. Examples might include developing low-carbon products, tapping into green finance, or enhancing your brand by demonstrating climate leadership. This helps you not only manage risks but also spot ways to gain a competitive edge and create new value.

• Recommendations for risk mitigation roadmap: Practical, step-by-step recommendations for reducing your exposure to key risks - such as upgrading infrastructure, diversifying suppliers, or investing in new technologies. You get a clear action plan to protect your business, support investment decisions, and demonstrate proactive risk management to stakeholders.

• Reporting-ready outputs in line with VMSE or ESRS: Practical, step-by-step recommendations for reducing your exposure to key risks - such as upgrading infrastructure, diversifying suppliers, or investing in new technologies. Guidance on adaptation strategies to build long-term resilience, including timelines, responsible teams, and potential costs/benefits. You get a clear action plan to protect your business, support investment decisions, and demonstrate proactive risk management to stakeholders.

Our Approach: Straightforward. Strategic. Scalable.

Whether you're just starting your climate journey or deepening an existing ESG strategy, we meet you where you are:

Focused - we prioritize material risks and what's most relevant to your sector

Efficient - results typically delivered in 2-4 weeks

Scalable - options for basic screening or deep-dive analysis

Whether your goal is to meet investor expectations, unlock new funding, or stay ahead of ESG regulation - a climate risk assessment is your first step.