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Solo Institute

Service Cluster 01 / Four

Translate climate risk into the language of the balance sheet.

From physical risk mapping to TCFD and IFRS S2 reporting — we turn asset-level vulnerabilities into strategic decision inputs.

Translate climate risk into the language of the balance sheet.Service Cluster 01 / Four

Problem

Is your organisation managing this exposure quantitatively, or by intuition?

Climate change is no longer a question for the future. Corporate assets — plants, logistics chains, the supplier base, worker safety — are exposed to physical climate events and to the new risks introduced by the transition to a low-carbon economy. That exposure flows directly into the cost of credit, insurance premiums and the reporting expectations of regulators.

Method

A three-stage approach

Exposure Screening

  • Asset-level geographic mapping (heat, flood, drought, storm, sea level)
  • IPCC scenarios (SSP1-2.6 to SSP5-8.5) across short, medium and long horizons
  • The same analysis for critical nodes of the supply chain

Impact Modelling

  • Translation of physical risk into financial impact (Climate VaR approach)
  • Transition risk: carbon price, regulation and demand-shift scenarios
  • Operational disruption, asset value erosion, insurance cost

Adaptation Prioritisation

  • Which assets are priorities, which require monitoring, which are candidates for relocation?
  • An ROI framework for the investment decision
  • Output formats aligned with TCFD and IFRS S2 reporting

Outputs

What you receive, concretely.

  • Asset-level physical risk heat map (interactive or static)
  • Scenario-based financial impact summary (board presentation)
  • TCFD / IFRS S2-aligned disclosure drafts
  • Adaptation roadmap (3–5 years, prioritised)

Framework

Standards and frameworks

TCFD
Task Force on Climate-related Financial Disclosures
IFRS S1 / S2
ISSB climate disclosure standards
CSRD / ESRS E1
EU Corporate Sustainability Reporting Directive
SBTi
Science Based Targets initiative
NGFS
Network for Greening the Financial System scenarios

Who it is for

Who it is for

  • Production-heavy sectors (glass, iron and steel, cement, food, textiles)
  • Logistics and port operators
  • Financial institutions (banks, insurers, asset managers)
  • Organisations using development bank finance
  • Large enterprises within the scope of CSRD

Let's start mapping your exposure.

First call is on us — a short look at your organisation's risk profile.