Fit for climate change with Climate Excellence

Your expert for questions

Gunther Dütsch
Partner, Sustainability Services & Climate Risk at PwC Germany
Email

Learn more: “Climate Excellence”

Already Customer?

PwC’s “Climate Excellence tool” for climate scenario analyses

PwC’s “Climate Excellence tool” supports companies from the financial and real economy in conducting climate scenario analyses to make their portfolios fit and future-proof for the risks and opportunities of climate change. This enables them to realize increases in value, adequately manage risks, and set up a long-term sustainability strategy and compliant reporting.

Climate change forces immediate action

Increasing occurrence of climate disasters

According to the Intergovernmental Panel on Climate Change’s Sixth Assessment Report, climate change is becoming more drastic and the critical global warming mark of 1.5°C is likely to be exceeded by 2030. Global warming is leading to increasingly frequent and severe weather extremes.Climate change and climate protection are having an ever greater impact on economic developments. They also entail major financial risks: From power plants that do not come on stream, to the electrification of individual transport, to the increasing energy requirements for buildings.

More and more complex regulations

The pressure to act on the part of politicians is increasing. The EU is supposed to be climate-neutral by 2050. A joint effort that requires a radical turnaround – also for companies, banks and insurances.

Regulators such as the European Central Bank (ECB) or the European Insurance and Occupational Pension Authority (EIOPA) emphasise the importance of this goal, for example in the ECB consultation paper on climate risks and the guideline for non-financial reporting or in the EIOPA application guidance on climate change materiality assessment and climate change scenarios in the own risk and solvency assessment (ORSA). Additionally, more and more reporting requirements like the framework of the Corporate Sustainability Reporting Directive (CSRD) and the EU taxonomy are already shaping the necessity for climate risk analysis and management of financial institutions and the real economy.

Climate Excellence Tool

Making climate risks and opportunities transparent and assessing them with Climate Excellence. 

Many questions arise with regard to climate change and possible impacts:

• How will climate risks affect my portfolio or my company financially in the future?
• How can I protect myself against these risks?
• How do I exploit future potential as a value driver?
• Where do I stand in comparison to the competition?
• How can I efficiently implement the recommendations of the TCFD (Task Force on Climate-related Disclosure), the regulatory authorities and the CSRD (Corporate Sustainability Reporting Directive) in my reporting?

The PwC Climate Excellence tool helps you answer these questions quickly and reliably. The tool’s scenario analyses give you maximum transparency on your portfolios by analysing and visualising financial impacts of climate change.

Climate change-related opportunities and risks are calculated on the basis of various climate scenarios and energy system models. Transitory risks, such as changing prices, demand, technological advances or regulation, as well as physical risks are taken into account. We analyse seven natural hazards that are particularly relevant for the analysis of physical climate risks: Heat waves, floods, thunderstorms, tropical cyclones, wildfires, droughts and sea-level rise.