Scenario analysis

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.

TCFD guidance on scenario analysis.

Scenario models have formed a substantive part of managing financial risk for years. WTW look at how climate impacts – and transition - bring new subtleties to the way organizations and governments understand and use them.

In this three-part series on climate scenario analysis, KPMG examines banks and other financial institutions’ end-to-end climate risk scenario analysis models.