Resilience Starts With Understanding Risk.

Assess physical and transition climate risks using rigorous scenario analysis. Protect your assets, satisfy disclosure requirements, and build long-term operational resilience.

2
Scenario Pathways Modelled
4
Risk Categories Assessed
100%
TCFD/ISSB Aligned
The Challenge

Climate risk is financial risk.

Physical climate hazards are no longer distant projections confined to academic papers. Flooding, extreme heat events, wildfires, and intensifying storms are already damaging infrastructure, disrupting supply chains, and eroding asset values across every sector. Businesses with coastal facilities, temperature-sensitive operations, or extended logistics networks face mounting exposure that traditional risk models were never designed to capture. Insurers are repricing coverage, lenders are scrutinising portfolios, and investors are demanding transparent assessments of how climate change will affect the bottom line over the next decade and beyond.

Transition risks pose an equally significant threat. Accelerating carbon-pricing mechanisms, tightening regulations, shifting consumer preferences, and rapid technology displacement can strand assets and render entire business models obsolete. Yet many boards still lack the analytical tools and scenario frameworks needed to quantify these exposures, stress-test strategic plans, or communicate climate-related risks to stakeholders in a credible, decision-useful way. Without a structured approach, organisations are left reactive rather than resilient, exposed to shocks they could have anticipated and mitigated.

The Bank of England, the Network for Greening the Financial System (NGFS), and global prudential regulators have made climate risk a supervisory priority, embedding scenario analysis into stress-testing requirements and expecting firms to demonstrate board-level governance of climate-related exposures.

Our Approach

Scenario-driven analysis that informs real decisions.

We combine climate science with financial rigour to give your leadership team a clear, quantified picture of exposure and a practical roadmap for building resilience.

Scenario Analysis

We model your business against both a 1.5°C orderly-transition pathway and a 3°C hot-house-world scenario, using NGFS-aligned climate projections and sector-specific data to quantify physical and transition risks across short, medium, and long-term horizons. The result is a clear understanding of how different futures could reshape your operations, revenue streams, and capital requirements.

Framework Alignment

Our assessments are structured around the four TCFD pillars of Governance, Strategy, Risk Management, and Metrics & Targets, while also meeting the requirements of ISSB S2 climate-related disclosures. We integrate findings directly into your existing enterprise risk management framework so that climate risk sits alongside operational, financial, and strategic risks rather than in a silo.

Adaptation Plans

We translate risk findings into practical adaptation strategies that span from site-level resilience measures such as flood defences and cooling infrastructure through to portfolio-level diversification and supply-chain contingency planning. Each recommendation is prioritised by impact, cost, and implementation timeline so your team can move from insight to action without delay.

How We Work

From risk identification to resilience in four steps.

Our structured process ensures that every material climate risk is identified, quantified, and addressed with clear, actionable strategies.

Risk Identification

We map your value chain, asset base, and geographic footprint against a comprehensive taxonomy of physical and transition risks, identifying which hazards are material to your business and where your greatest exposures lie.

Scenario Modelling

Using NGFS-aligned climate pathways, we model how identified risks evolve under different warming trajectories, applying sector-specific variables and timeframes that match your strategic planning horizon.

Impact Assessment

We quantify the financial implications of each risk scenario, translating climate projections into balance-sheet impacts including asset impairment, revenue disruption, increased operating costs, and capital expenditure requirements.

Adaptation Strategy

We deliver a prioritised adaptation roadmap with costed interventions, governance recommendations, and monitoring metrics so your organisation can build resilience systematically and report progress to stakeholders.

Why It Matters

Turn climate uncertainty into strategic clarity.

Protect Assets

Identify and mitigate physical and transition risks before they materialise, safeguarding property, infrastructure, supply chains, and revenue streams against climate-related disruption and ensuring long-term value preservation across your portfolio.

Strategic Advantage

Organisations that understand their climate exposure can allocate capital more effectively, seize transition opportunities ahead of competitors, and demonstrate to investors and lenders that they are managing long-term risks with rigour and foresight.

Compliance

Meet the disclosure expectations of TCFD, ISSB S2, and emerging regulatory requirements with robust, auditable scenario analysis that satisfies regulators, ratings agencies, and institutional investors seeking decision-useful climate risk information.

Ready to understand your climate exposure?

Speak with our team to scope a climate risk assessment tailored to your sector, asset base, and strategic priorities.

Get in Touch
FAQs

Common questions about climate risk and adaptation.

The Task Force on Climate-related Financial Disclosures (TCFD) is a framework that helps organisations disclose climate-related risks and opportunities across four pillars: Governance, Strategy, Risk Management, and Metrics & Targets. It has become the global standard for climate risk disclosure, adopted by regulators, stock exchanges, and investors worldwide. In the UK, TCFD-aligned reporting is already mandatory for large companies and financial institutions.
Physical risks arise from the direct impacts of climate change, including acute events such as flooding, storms, and heatwaves, and chronic shifts such as rising sea levels and changing precipitation patterns. Transition risks stem from the economic and policy shifts associated with moving to a low-carbon economy, including carbon pricing, regulatory changes, technology disruption, and evolving market preferences. A comprehensive assessment addresses both categories.
Yes. The UK was the first G7 nation to mandate TCFD-aligned disclosures. Requirements apply to premium and standard listed companies, large private companies, banks, insurers, and asset managers. The UK has also adopted ISSB standards (IFRS S1 and S2), which build on and supersede TCFD, meaning climate risk disclosure obligations will continue to expand in scope and rigour.
While every sector faces some degree of climate exposure, the most materially impacted include real estate and infrastructure (physical damage and stranded assets), financial services (portfolio exposure and regulatory scrutiny), agriculture and food (supply-chain disruption and yield variability), energy (transition risk and asset stranding), and transport and logistics (infrastructure vulnerability and fuel-cost volatility). Our assessments are tailored to your sector's specific risk profile.
Climate risk should not sit in isolation. We design our assessments to integrate directly into your existing enterprise risk management (ERM) framework, mapping climate hazards to your established risk categories, likelihood scales, and impact matrices. This ensures climate considerations are embedded in strategic planning, capital allocation, and board-level decision-making rather than treated as a standalone ESG exercise.
Related Services

Explore connected capabilities.

Climate risk assessment works best alongside broader sustainability and disclosure strategies. Explore the services that complement this work.

Build a business that thrives in any climate scenario.

Partner with 507climate to assess your exposure, strengthen your resilience, and turn climate risk into a source of strategic advantage.

Get in Touch