Climate & Nature

Climate change and biodiversity loss are rapidly reshaping the risk landscape for businesses and financial institutions. Biodiversity loss was ranked as the third most severe threat humanity will face in the next 10 years by the World Economic Forum, with direct implications for economic stability and long‑term value creation. As ecosystems degrade, the impacts increasingly materialise as supply‑chain disruptions, input scarcity, regulatory pressure and financial loss.

At the same time, climate change is intensifying physical risks through more frequent and severe weather events, while the transition to a low‑carbon economy is accelerating changes in policy, regulation and market expectations. Together, climate‑ and nature‑related risks threaten to impose serious financial risks to companies and their investors, lenders and insurers.

Organizations are also facing growing expectations from society to demonstrate credible action. Those that act early and use robust data to steer decision‑making can strengthen resilience and unlock strategic opportunities.

Climate-related risks are often underestimated by companies because of their long-term effects and their complexity. Yet many organizations are already experiencing real impacts today, for example through water stress, resource scarcity, supply chain volatility and rising costs.

For many companies, assessing, managing and disclosing these risks — while identifying opportunities — is new territory. Questions often include where to start, how to translate scientific data into business‑relevant insights, and how to embed climate and biodiversity into strategy, risk management and governance.

Meanwhile, many banks, pension funds, asset managers, insurers and others have put growing pressure on companies to align with frameworks such as the Task Force on Climate‑related Financial Disclosures (TCFD) and emerging nature‑related frameworks like the Taskforce on Nature‑related Financial Disclosures (TNFD).

KPMG supports organizations in understanding and managing climate‑ and nature‑related risks and opportunities, and in translating these insights into strategic action.

For climate and decarbonization we help clients develop robust and insightful climate scenarios, to understand the financial implications, and implementing the right strategy to mitigate climate-related risks and seize climate-related opportunities. We support clients in making sense of the TCFD recommendations and the increasing number of climate-related regulations, in order to comply with regulations and to demonstrate companies’ ambition level. Our experts can guide you as you prepare your business to thrive in a low-carbon world.

For biodiversity and nature, we help clients assess dependencies, impacts, risks and opportunities (DIRO) across their operations, locations and value chains. This provides a clear view of where businesses depend on nature, how they impact biodiversity, and where material risks and opportunities arise.

Our approach is aligned with leading frameworks such as TNFD and the LEAP approach, enabling organizations to identify, assess and manage nature‑related risks and opportunities and link them directly to strategy, capital allocation and board‑level decision‑making. In collaboration with partners such as Naturalis Biodiversity Center, we combine these frameworks with data‑driven insights to translate complex biodiversity data into actionable outcomes.

We also support clients in developing Nature Transition Plans, setting out how organizations move from today’s impacts and dependencies towards more nature‑positive business models. These plans focus on concrete actions, targets, investments and governance — embedding nature into long‑term value creation.

Our support covers the following areas:

• Identifying and mapping climate‑ and nature‑related risks and opportunities across value chains;
• Assessing dependencies and impacts on nature through DIRO analyses;
• Developing and applying climate and nature scenarios to assess business resilience and financial impact;
• Designing and implementing Climate and Nature Transition Plans aligned with TCFD, TNFD and SBTN;
• Translating scientific and biodiversity data into decision‑useful, business‑relevant insights;
• Understand business implications and impact on financial performance;
• Defining actions to mitigate and adapt climate-related risks and seize opportunities from climate change;
• Integrating climate and nature risks into strategy, risk management and governance;
• Supporting climate and nature reporting to meet regulatory and investor expectations.