Climate risks
Identifying climate risks and taking action
CLIENT
Listed chemicals group
EXPERTISE
Climate risks
SERVICE
Risk assessment report with a competitive analysis and roadmap
01 INITIAL SITUATION
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A listed chemicals group came under public criticism for its role in the expansion of fossil fuel infrastructure.
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There was a lack of publicly available climate targets and measures with which the company could have responded.
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Shortly before, the German government had decided to tighten the Climate Protection Act and to achieve climate neutrality as early as 2045. This increased the pressure on energy-intensive sectors, such as the chemical industry, to set their own targets.
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At the same time, with the forthcoming EU reporting regulations, it became clear that climate targets and climate risks would have to be disclosed in future.
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The company wanted to know how it compared to its competitors in terms of climate protection and which climate protection measures were necessary and feasible.
02 APPROACH
STEP 01
Position analysis
We analysed internal strategy documents as well as studies and rankings relating to climate and sustainability risks. On this basis, we assessed how the company is positioned in key areas.
STEP 03
Competitor comparison
Using a five-stage model for sustainability positioning, we have assessed the company’s position relative to seven competitors. From this, we have drawn up recommendations organised by time horizon.
STEP 02
Interviews
In addition, we conducted interviews with key personnel from the sustainability, communications and technology departments. This enabled us to incorporate assessments that are not documented anywhere else.
STEP 04
Recommendations
In a workshop attended by eleven senior managers from all relevant departments – from sales to the legal department – we translated the recommendations into concrete initiatives.
03 RESULTS
Dossier on climate and sustainability risks
The dossier assesses performance across four categories, ranging from climate strategy to technological innovation. For each area, there is an observation and a specific suggestion for improvement.
Recommendations by time horizon
In the short term, the focus is on Paris Agreement-compatible targets, management accountability and an internal carbon price. In the long term, however, the focus is on aligning products and business models.
Roadmap
The roadmap sets out milestones across five areas of action, thereby providing the company with a publicly justifiable path towards its own climate targets.