Identifying and assessing climate risks and opportunities

Brunswick convened high-level discussions during New York Climate Week on the financial industries’ role in the climate transition. This blog captures reflections from those in attendance, and industry views on the most material developments announced throughout the week as focus intensifies on the role of finance in the climate transition.

On 2 October 2024, global non-executive directors participated in the Climate Scenario Game: Nature Risk in the Boardroom, a webinar organised by Chapter Zero, the Climate Governance Initiative and GARP Risk Institute. Attendees acted as the board of a fictional company, voting on critical decisions for four future dilemmas over the next six years. Expert panellists provided insights into the decision-making process and outcomes. This immersive exercise highlighted the urgency of addressing nature risks, equipping participants to tackle policy, legal, market, and reputational challenges within their own organisations.

In collaboration with the Carbon Trust, the first module in our Transition Planning series explores the role of the non-executive director (NED) in ensuring organisations follow best practices in assessing climate-related risks and opportunities, the scenario analysis methodology to support such assessment, and practical insights of key levers for organisations to develop a transition plan.

International appliance care specialist Domestic & General (D&G) delivered an increase of 13.5% in adjusted EBITDA in financial year ended March 2025 over 2024. Group total revenue was up 6% year-on-year. As part of its commitment to sustainability, D&G’s repair-first ethos – what it calls ‘Smart Fix’ – remains at the heart of this success.

Legal & General (L&G) has invested £4bn of its own money in transition finance, including £1.6bn in renewable energy, £1.7bn in green bonds and £0.7bn in other solutions (such as technology, infrastructure and real estate). This supports the transition and helps with L&G’s resilience to climate risk. It has also launched its Clean Power (Europe) Fund with partners NTR, raising €390m, aimed at investing in Europe’s decarbonisation and energy security. Through its Asset Management business, L&G is holding a £1,117bn slice of the global economy of which £419bn of assets are in responsible investment strategies.

SSE has a long-term decarbonisation vision. It also has a portfolio of capital-intensive projects that are focused on this goal. The company’s successive Chairs and their boards have played a vital role in the transition of the company and, as a consequence, the UK economy. Climate is a key plank of SSE’s corporate strategy.

While climate risk management at all financial institutions has significantly progressed in recent years, differences remain between leading firms and those that are less advanced. In this new report, GARP Risk Institute examines key trends from the previous four annual Global Climate Risk Surveys to offer a holistic view of the evolution of climate risk practices