Climate-led transformation

The climate-led transformation framework will guide you through the five steps to help reduce carbon emissions and climate-induced losses and capture value from the climate transition already underway.

Explore the guiding principles to climate-led transformation:

· Climate-related physical and transition risks.

· Adaptation and mitigation action.

· Value creation opportunities.

The steps outlined will help you to understand your emissions profile and the climate-related risks and opportunities most pertinent to your business.

Understand your organisation’s current state, identify and prioritise material climate change issues, and define and commit to a climate change aspiration appropriate for your business.

Set ambitious and achievable climate aspiration. Assess the current state. Identify and prioritise material climate change issues. Define and commit to climate change targets.

To create an agile climate transformation strategy, the first step is to commit to a target that is credible, achievable, time-bound and value-creating.

Assess the strategic impacts of climate change on your business and the opportunities for value creation that can come from transformation.

Consider the factors to develop a climate strategy:

· Assess potential climate risks and impacts.

· Identify and implement opportunities for value creation.

Step 2 provides the guidance to establish a climate strategy that can be embedded across your business, reduce carbon emissions, manage climate risks, and create value through climate-related opportunities. 

Successful , climate-led transformation will require an operating model that reflects a shared commitment to your organisation’s aspirations and climate strategy in the near and long term.

Evaluate the current and future state:

· Assess your operating model.

· Consider operational changes required.

· Execute changes to achieve your aspiration.

Alignment of your operating model with your climate strategy can reduce risk, increase resilience and create value for your business.

Developing organisational capacity to deliver your climate strategy will help to embed, sustain and reinforce your climate-led transformation.

Equip your organisation with the optimal skills and resources:

· Review what capabilities can support the new future state.

· Pinpoint capability gaps to be acquired.

Develop your organisation’s capability to confidently deliver your climate strategy.

Track and disclose progress in achieving your climate targets to enable adjustments over time and maintain the confidence of internal and external stakeholders.

Enable and embed reporting:

· Map internal and external stakeholders.

· Identify the climate data needed to track progress.

· Meet disclosure requirements.

Step 5 can help to enable your organisation to disclose according to stakeholder needs, provide leadership with the information needed to adjust strategy over time, identify savings and costs, and be accountable for performance.