Case: Climate Transition Plan development for a multinational conglomerate
Challenge
The client, which has a very diverse portfolio with different end markets, wanted to understand the potential climate risks and opportunities along the entire value chain (supply chain, own operations, products and markets) in order to lay the foundation for a climate transition plan. Furthermore, the results of the analyses were to be strategically anchored in the business strategy and reviewed on a regular basis.
A climate transition plan in line with the current regulatory requirements is a crucial step in positioning the company as a part of the solution in a transforming world. It also ensures that the company’s business model is compatible with the 1.5°C target.
Solution
Deloitte divided the project into four phases. The first phase was characterized by building initial hypotheses about the impact of climate change on the business model and deriving an initial high-level understanding of a climate transition plan target picture. This phase was followed by a scenario analysis, in line with the CSRD requirements, to recognize potential risks and opportunities associated with the climate transition. In the third phase, risk and opportunity hotspots were identified along the entire value chain in order to create heat maps and to determine the financial impact on each business unit. The final phase was to define a climate transition plan based on the findings and an implementation roadmap to integrate the results into the business strategy with clearly defined action items.
Impact
Our efforts delivered significant value to the client by pinpointing potential climate change impacts on their business model and laying the foundation for aligning their business strategy with a 1.5°C world. This was achieved by developing a climate transition plan in accordance with the CSRD.
Dr. Nicole Röttmer
