Strategy, risk management, and impact
Climate Strategy is an informed approach to addressing the realities of climate change from a business perspective, both from an inward-looking perspective [climate risk management] and an outward-looking perspective [climate impact management].
The requirement for understanding and transparency regarding climate change is increasing daily. The most widely used approach is currently TCFD, though many other guidelines are being produced. All bodies assessing climate change strategy require an organisation to consider climate-related (and ideally broader ESG) potential threats and opportunities (risks) over several time horizons. Given the rapidly evolving landscape, if you are not already required to deliver a TCFD disclosure as part of an annual report or a sustainability report, there is a very good chance you will be soon.
Our team are recognised as world-leading experts in enterprise risk management and environment, social, and governance (ESG) consultancy. We have been working with TCFD since the release of the guidelines in 2017 and helping companies analyse and adapt to the risks and opportunities of climate change for much longer. With world-class expertise in strategy, scenario analysis, governance, and risk management, Satarla is uniquely places to address all of the most fundamental components of TCFD and other regulations.
Tailored | Flexible | Evolving
Guidelines require organisations to scrutinise their response to climate change, yet also leave a degree of freedom for organisations to choose the level of complexity they are ready to embrace. Satarla offers a selection of services designed to complement this approach.
Our Menu of Services enables a fully tailored approach to Climate Strategy, best aligned with your organisational ambitions and preparedness, and best suited to help your organisation grow in its climate change response. Given our experience with clients of varying levels of ambition, you have full flexibility to customise your service package based on the full Menu.
SCOPE OF SERVICES
Satarla wants clients to thrive as they develop future-ready Climate Strategies, so we work in way that enables this. All work is carried out in an open, transparent manner, and we ensure you have control over the sources, data, and modelling assumptions so that you are not reliant upon Satarla or any external services or service providers.
Nevertheless, should you require it, Satarla can offer ongoing coaching and support from experts who work closely with TCFD and other Sustainable Finance guidelines.
WAYS OF WORKING
We will work closely with you to ensure that we meet your needs in whatever ways we can. The Menu of Services is not exhaustive, and the description of the work to be delivered under each header is intended as a guideline only; Satarla provides bespoke services, tailored to an organisation’s specific context and requirements.
We will discuss and agree the precise details of work to be carried out before any work begins, and keep you regularly updated regarding project progress and timelines.
SOME OF OUR SERVICES
SCENARIO ANALYSIS + QUANTITATIVE MODELS
Climate Scenario Analysis is the cornerstone of the analytical component of an organisation’s response to climate change, and the most consistent recommendation in the TCFD approach. It identifies factors affecting the short- and long-term ability of a company to generate value highlights how influences interact with those factors (and each other). Quantitative Modelling further allows you to explore how these factors may impact on financial models, and update strategies to incorporate these factors. This allows your organisation to take a sophisticated approach to risk ensures you are prepared to respond to evolving climate and ESG disclosure requirements.
CLIMATE IMPACT MANAGEMENT
Climate impact management builds on climate risk management by encouraging organisations to use the information gathered in the latter process to address the outward-looking impacts they create on the environment. This information can then be used to inform organisational strategies and leverage the opportunities associated with climate change to create more positive impacts (and reduce negative ones). Climate impact and risk management approaches are interlinked as the most significant threats to an organisation are often from a climate risk perspective are those arising from organisational behaviours causing a negative impact on the environment.
FULL ENTERPRISE RISK MANAGEMENT
Simple, integrated, enterprise-wide risk management provides the mechanism through which all risks can be understood and balanced. In this context, ERM can ensure that climate risk is integrated throughout every level of an organisation. Satarla can provide guidance, training, and support in upgrading your risk management approach so that it is practical, focused on controls and actions, and delivers value rather than “ticking boxes”. This ensures that any modifications or new ERM processes are appropriate for the wider goals of an ERM function, including ESG risk management and future integrated risk management for the organisation.