Climate risk assessment
Be climate smart
Climate change is not a distant environmental issue. It is a material business risk already shaping markets, supply chains, and policy. From regulatory pressure and investor scrutiny to operational disruptions and reputational exposure, climate risks are becoming increasingly interconnected and unavoidable. At SAGE, we help organisations make sense of this complexity through a structured, science-informed approach to climate risk assessment. Whether you are preparing your first TCFD (IFRS 2) disclosure or stress-testing long-term capital plans, our assessments move beyond theoretical modelling to deliver insights that are decision-relevant and grounded in your business realities.
Physical risks manifest in both acute and chronic forms and transitional risks can be reputational, regulatory, policy, market and technology risks.
Whether you are responding to investor pressure, preparing for disclosure requirements, or proactively building resilience, our team has the expertise to guide you through a process that creates genuine strategic value.
FAQ's
What is climate risk and how is it different from other risks?
Climate risk includes long-term, systemic disruptions caused by climate change, which differ from typical business risks in both scale, horizon and level of uncertainty.
What’s the difference between physical and transition risks?
Physical risks relate to climate-related weather events and trends, while transition risks arise from changes in policies, markets, and technologies.
How do we assess location-specific climate risks?
We use regional hazard data, exposure scenarios and sector-specific analysis to evaluate risks across your assets.
Are disclosures like TCFD (IFRS 2) mandatory?
Yes, under several jurisdictions including CSRD, TCFD-aligned reporting is becoming mandatory for listed and large companies.
How do we use these findings in your climate strategy?
We link risks to governance, capital planning, and resilience measures, embedding climate into core decision-making.
What we offer
Identification of physical and transition risks
Scenario analysis using IPCC models and pathways
Vulnerability assessment across sites and operations
TCFD-aligned reporting
Climate adaptation and resilience planning
Our collaborative process:
Risk scoping
Define climate-sensitive assets and value chain segments.
Scenario mapping
Apply IPCC and national climate scenarios across short, medium and long timeframes.
Exposure and vulnerability assessment
Model hazard exposure and adaptive capacity by location and function.
Strategic risk integration
Embed risk findings into ERM systems and board reporting.
TCFD-aligned reporting
Prepare structured disclosures for regulatory and investor communication.
Outcomes you can expect:
Climate risk heatmap
A visual risk profile showing the geographic and functional exposure to both physical and transition risks.
Scenario-based modelling
Multi-horizon climate scenarios that help anticipate how different climate pathways could impact operations and assets.
Vulnerability scores
A quantified view of exposure and adaptive capacity, guiding targeted resilience investments and contingency planning.
Adaptation strategy brief
Practical recommendations for climate-proofing infrastructure, supply chains, and business continuity plans.
TCFD (IFRS 2) and CSRD-aligned reporting
Disclosure-ready content that satisfies regulatory frameworks and enhances climate transparency for investors and regulators.
Where are you on your Climate risk journey?
Whether you are just beginning to explore climate risk or refining existing disclosures, we tailor our approach to your context. We work with companies across maturity levels from those mapping risk for the first time to those embedding resilience into strategic decisions.
Our approach
We ground climate risk in business relevance. Using climate science, hazard data and sector logic, we assess exposure and impacts that matter to your stakeholders, operations and capital planning. Every output is decision-useful, rooted in science, scaled to your business.
Why choose SAGE for Climate risk assessment?
We make climate risk real, relevant, and actionable. SAGE combines scientific rigour with boardroom clarity, translating climate data into insights that drive risk mitigation, governance alignment, and future-proof strategies. Our clients trust us to navigate complex climate topics without jargon.
