ESG Risk Assessment & Climate Scenario Modelling

Consider the future with the best tools today

No-one knows exactly what the future holds. Regulators, investors and the public don’t expect us to have a crystal ball to see what tomorrow will look like.

But we can expect to properly understand our current business models, and we can take steps to assess how exposed they are to the possible forces the future could bring.

Naiad’s approach is unique in bringing together environmental and business modelling to produce real insights to organisations’ environmental risks – whether those are risks from or to your business model. We can:

  • Map and build models, comprising appropriate ‘digital twins’ of your organisation, operations and value chain
  • Carry out scenario and sensitivity analysis
  • Produce tailored reports and monitor risk on an ongoing basis

We are:

  • Platform agnostic – while we can and do carry out modelling and forecasting using a huge range of platforms, the underlying models are built to be portable and widely interpretable.
  • Focussed on Environmental, Social and Governance (ESG) Risks and Opportunities. This includes climate change (one of the biggest uncertainties
  • Completely professional and credible. Our services and products are completely focussed on providing the clearest and most accurate insight possible.

Climate Scenario Modelling

Responsible businesses and other organisations should understand and mitigate their impact on the world around them, and this is particularly true when it comes to greenhouse gas emissions and climate change. However, the work of the Financial Stability Board’s Task Force for Climate-related Financial Disclosure (TCFD) has also emphasised the need for businesses to understand these risks for their own benefit.

Scenario analysis is a powerful tool recommended by the TCFD for organisations to understand and assess the possible impacts of climate change on their operations and value chains. We follow best practice in taking credible, distinctive scenarios and using them as inputs to operational models. This allows us to assess:

  • Possible impacts of climate change on your organisation’s operations, assets and value chain
  • Conversely, whether and how your organisation and value chain are responsible for greenhouse gas emissions.