Climate risk and decarbonisation

Organisations and governments are acting on climate change. The role of decarbonisation in operations and across value chains is rapidly progressing and this has been accelerated by investor, community and market pressure.

Globally, a growing number of organisations are committing to renewables and net zero emissions. Business owners, boards, shareholders and governments now expect expert analysis of the financial risks associated with climate change and a detailed program to mitigate those risks. With renewable energy reaching price parity, the cost of taking action is also decreasing. It is now much cheaper to substitute renewables for fossil fuel and, in many cases attain significant economic benefits.

In addition, understanding the physical impacts of climate change now and into the future allows you to build a more resilient business and make informed strategic decisions.

How we can help

We take you beyond risk identification and mitigation to decarbonisation strategies and abatement projects that deliver competitive advantage. In addition to reporting on risk profiles, we can help you visualise risks, optimise your strategy, and realise your opportunities. Our service offerings include:

• Climate risk – Assessing physical and transition risks (regulatory, market and stakeholders) for all operations and supply chain under various IPCC scenarios.
• Emissions data and forecasting – Analysing current and forecast emissions data split by scope, site, fuel type, operations, etc.
• Abatement pathways – Combining IPCC climate scenarios and financial impact assessment to design abatement pathways and potential in compliance with Science-Based Targets Initiative (SBTi).
• Operational emissions optimisation – Application of marginal abatement cost curves, policy analysis and portfolio optimisation.
• Value chain partnerships – Understanding value chains and building partnerships to meet common needs.
• Emissions reduction forecasting – Capital impact analyses of emissions commitment options, options identification for offsetting emissions and timing optimisation of mitigation project delivery based on carbon pricing and carbon budget.
• Decarbonisation targets – Target-setting for carbon neutral, net zero and net negative commitments.
• Taskforce on Climate-related Financial Disclosures (TCFD) Reporting
• Project development and deployment – Financing, digital transformation, risk analytics as well as integration of low emissions and renewable technology.
  

Decarbonisation Solutions^TM

To support delivery, we have developed Deloitte Decarbonisation SolutionsTM – a suite of interactive modules that help to accelerate the delivery of climate risk and strategic decarbonisation projects tailored to your organisation.
Deloitte Decarbonisation Solutions™ has been utilised by some of the world’s largest organisations, as well as single asset operators, to help solve some of their most pressing issues.

The Deloitte Climate Capsule

To help you build expertise and engage stakeholders, Climate Capsule is a facilitated process to engage on the issues, challenge thinking on impacts and empower decision making on the complex business issues surrounding climate change. This experiential workshop will assist you to address the challenges and capitalise on the opportunities presented by climate change. It leverages the internationally accepted global corporate climate framework: Task Force on Climate-related Financial Disclosures (TCFD).

Latest insights

Explore this topic further with our reports below:

• Extracting value from decarbonisation
• Climate-related risk assessments and financial disclosures
• A closer look to climate change