Climate risk analysis in accordance with CSRD and EU Taxonomy Regulation

BDO Austria uses a specially developed tool to create scientifically based climate risk analyzes that are required in both the Corporate Sustainability Reporting Directive (CSRD) and the EU Taxonomy Regulation. With the help of the tool, companies receive various climate indicators at the push of a button as a database for reporting requirements. At the same time, the knowledge about future climate-related threats at the location can be used for strategic decisions.

The BDO climate risk tool presents future climate developments at locations across Europe and the resulting natural hazards, taking emissions scenarios into account. Based on the models of the Intergovernmental Panel on Climate Change (IPCC) and thus scientific climate data, 68 different indicators were developed to provide a comprehensive overview about future developments in climate hazards. These scenarios not only provide the database for compliant sustainability reporting, but also the basis for well-founded and fact-based strategic decisions.

Reporting requirements
The CSRD calls for a climate risk analysis in which companies identify physical climate risks in their own areas of activity and along the value chain. According to the EU Taxonomy Regulation, the assessment of physical climate risks must be based on the highest resolution and state-of-the-art climate projections. These allow future climate risks to be mapped, suitable adaptation solutions to be planned and implemented within a specified period of time.

Risk management
The analysis of physical climate risks in particular holds great potential for companies beyond fulfilling reporting obligations. An early location of physical climate risks and the derivation of risks at one’s own company locations enable the appropriate measures to be taken in a timely manner. In this way, well-founded management decisions can be made regarding location selection, structural measures or supplier selection in order to increase the overall resilience of the company.

What should be done?

• Clarify reporting obligations: Familiarize yourself with the reporting obligations that apply to your company – which may also apply indirectly via business partners – and find out what data needs to be collected.
• Identification of already known dangers and any damage that may have occurred: Get an overview of the exposure of your company locations.
• Use of scientific data and climate models: Assess the future threat in various climate scenarios and prepare the data for your reporting or have it prepared.
• Monetary assessment of possible climate risks and corresponding countermeasures: Make informed strategic decisions to ensure your business success even under the unfavorable conditions of climate change.

For more information, see bdo.at/klimatool.

BDO Webinar: Climate risk analysis according to CSRD & EU taxonomy

Many companies are currently faced with the challenge of creating a sustainability report in accordance with the requirements of the Corporate Sustainability Reporting Directive (CSRD) and the EU Taxonomy Regulation. A key part of this is climate risk and vulnerability analysis – a complex topic that often causes uncertainty. But the analysis of physical climate risks in particular holds great potential: it makes it possible to identify risks at an early stage. Participation is free.

Datum: October 23, 2024, 10:00 a.m. – October 23, 2024, 11:30 a.m

Art: Lectures and discussions

Ort: BDO Vienna

Am Belvedere 4

1100 Wien

URL: https://events.teams.microsoft.com/event/8e71f58f-ec8b-4e4b-91fa-25eba9c466f9@5b08a87b-ccb1-42b6-8194-3add2b960bd3