A strategic approach to climate risk analysis

Managing business exposure to climate risk is a board level priority. Companies need to act beyond simply meeting climate risk disclosure requirements to build resilience, understand opportunities and drive value for the future. 

Regulatory change, stakeholder engagement, and climate risk exposure is driving organisations to embrace forward looking analysis that will support them in their strategic decision-making.

Our Climate IQ tool has been designed to address these needs and more.

Our Climate IQ solution

KPMG Climate IQ is a multi-industry risk management tool that can run multiple scenarios to address questions you may have around your company’s exposure to climate change risks. It will help you formulate strategic decisions in line with your business needs and regulatory requirements.

Climate IQ can assess your exposure to physical risks of climate hazards as well as the economic impacts of transitioning to a low-carbon state on either a bespoke or automated basis including:

  • data simplification and selection of scenarios to assess metrics that matter most to your business
  • a climate risk and vulnerability assessment of your chosen performance indicators
  • climate risk analysis into the rate of change of various risks in your organisation, under different timings and levels of severity
  • climate risk modelling using dynamic visual mapping under different climate change scenarios.

Companies can tap into climate risk assessment methodology that allows them to identify, quantify and manage their physical and transitional climate change risks, to understand the impacts these have on their company.

What’s more, the climate risk and vulnerability assessments provided through Climate IQ are compliant with the Task Force on climate related financial disclosures (TCDF). Together, these outputs can support more effective board-level strategic decisions.

Find out how we can help you with climate risk analysis.

What are the benefits of Climate IQ?

TCFD Compliant

Climate IQ incorporates comprehensive assessment of all climate-related issues required by the TCFD guidelines and industry expectations, enabling users to evolve in line with market expectations.

Science driven

Climate IQ is underpinned by a Nobel prize winning Integrated Assessment Model which draws upon the best of climate science as established by the Intergovernmental Panel on Climate Change (IPCC) to inform economy wide outcomes.

Range of pathways

Climate IQ enables multiple scenarios to be run including 1.5, 2 and 4 degrees scenarios to understand the preparedness of a business model under a range of potential outcomes.

Global output

Climate IQ quantifies the impact of systemic economic impacts across global operations and supply chains covering 141 regions and 65 sectors.

Market leading modelling

Climate IQ incorporates physical damage projections and climate models from market leading and industry approved providers.

Continual analysis

Climate IQ enables ongoing analysis using existing data and modelling capabilities saving time, cost and effort. The modular approach can also be adapted to suit the needs of individual organisations.

Cloud-based technology

This solution can process large datasets at scale, allowing for simulations of multiple scenarios and sensitivity analyses of financial projections. Climate-IQ uses a data repository compatible with machine learning and Artificial Intelligence.

Frequently asked questions

Is TCFD reporting mandatory in Australia?

No. TFCD reporting is not mandatory in Australia, however, it provides a sound framework for climate risk disclosure enabling companies to remain aligned to market expectations.

Why did the US Securities and Exchange Commission (SEC) propose a new disclosure on climate risks?

The proposed rules are intended to provide more consistent, comparable and reliable information so investors can better evaluate the impact of climate-related matters on a registrant.

Learn more ❯

Will the SEC’s climate disclosure rules affect Australian businesses?

As TCFD reporting is not mandatory in Australia, companies will not be required to comply with the new rules. However, we believe a solid framework for reporting climate risk will not only help support more effective decision making, but also help companies align to market expectations.

Find out more

Get in touch today to find out how we can help you with climate risk analysis.

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