CDP Climate Change 2022 Reporting Guidance

(C3.2) Does your organization use climate-related scenario analysis to inform its strategy?

Change from last year

Modified question

Rationale

Your disclosure to this question provides data users with an indication of the extent to which your company is considering a range of possible and probable futures when considering climate-related challenges and opportunities, in line with best practices in corporate environmental management.

Connection to other frameworks

TCFD

Strategy recommended disclosure c) Describe the resilience of the organization’s strategy, taking into consideration different climate related scenarios, including a 2°C or lower scenario.

SDG

Goal 13: Climate action

2018 RobecoSAM Corporate Sustainability Assessment (DJSI)

Scenario Analysis

Response options

Complete the following table:

Requested content

General

• Select whether your organization uses climate-related scenario analysis to inform its business strategy, and if yes, the type of scenario analysis you use. See “Explanation of terms” for more details on qualitative and quantitative scenario analysis.

Primary reason why your organization does not use climate-related scenario analysis to inform its strategy (column 2)

• This column is only presented if “No, but we anticipate using qualitative and/or quantitative analysis in the next two years” or “No, and we do not anticipate doing so in the next two years” is selected in column 1.
• Select the reason that best describes why your organization does not use climate-related scenario analysis to inform your strategy.
• If more than one reason applies to your organization, select the reason which is most relevant and elaborate on the other reason(s) in column 3.

Explain why your organization does not use climate-related scenario analysis to inform its strategy and any plans to use it in the future (column 3)

• This column is only presented if “No, but we anticipate using qualitative and/or quantitative analysis in the next two years” or “No, and we do not anticipate doing so in the next two years” is selected in column 1.
• Provide a company-specific explanation of why you do not use climate-related scenario analysis to inform your strategy and outline any plans to do so in the future.
• If you selected “Judged to be unimportant, explanation provided” in column 2, explain the criteria used to decide that climate-related scenario analysis is not important for your organization.
• If you selected “Lack of internal resources”, specify whether this relates to lack of internal expertise, data availability, funds to outsource the analysis or other resources.

Explanation of terms

• Scenario analysis: A scenario describes a potential path of development that will lead to a particular outcome or goal. Scenario analysis is the process of highlighting central elements of a possible future and drawing attention to key factors (or critical uncertainties). It is a tool to enhance critical strategic thinking by challenging “business-as-usual” assumptions, and to explore alternatives based on their relative impact and likelihood of occurrence. Scenarios are not forecasts or predictions, but tools to describe potential pathways that lead to a particular outcome or goal.

- Qualitative scenarios: A high level, narrative approach to scenario analysis, suitable for organizations familiarizing themselves with the process. Qualitative scenario analysis explores relationships and trends for which little or no numerical data is available.
- Quantitative scenarios: A more detailed method for conducting scenario analysis, with greater rigor and sophistication in the use of data sets and quantitative models which may warrant further analysis. Quantitative scenario analysis can be used to assess measurable trends and relationships using models and other analytical techniques.

Additional information

Industry examples of scenario analysis - Shell, BP, Mercer, BHP Billiton, BIER’s Future Scenarios Toolkit