Climate Risk Assessment — Physical & Transition, TCFD Aligned

A Climate Risk Assessment evaluates the risks that climate change poses to an organisation's operations, assets, supply chains, and financial performance — examining both physical risks, arising from the direct impacts of climate change such as extreme weather events, rising temperatures, and sea level rise, and transition risks, arising from the shift to a low-carbon economy through policy changes, technological disruption, and changing market conditions. The assessment is structured around the recommendations of the Task Force on Climate-related Financial Disclosures — TCFD — which provides a globally recognised framework for identifying, assessing, and disclosing climate-related risks and opportunities.

It involves scenario analysis across multiple climate pathways, evaluation of risk materiality, and identification of adaptation and mitigation measures — providing management and investors with a structured understanding of how climate change affects the organisation's strategy and financial outlook. Climate risk assessment is increasingly required by institutional investors, lenders, and regulators — and is a prerequisite for TCFD-aligned disclosure, CDP reporting, and investor engagement on climate resilience.