Checklist: Three Steps to Develop a Strong Corporate Climate Strategy

q Measure and assess impact:

q Measure greenhouse gas (GHG) emissions in line with the GHG Protocol, and undertake life-cycle assessments.
q Use tools like Impact Measurement & Valuation and Portfolio Sustainability Assessment to quantify the societal impacts of a company’s activities and identify opportunities for
improvement.
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q Conduct scenario analyses on physical and transition risks brought about by climate change to obtain technical insights on the resilience of the organization’s strategy. In line with the
Understand climate- Task Force on Climate-Related Financial Disclosures (TCFD) recommendations, companies should use at least one 2°C or lower scenario.
related risks and
opportunities

q Engage stakeholders through the company’s materiality assessment or on the base of a project dedicated to the company’s climate strategy.

q Ensure effective governance: The company’s highest decision-making body (Supervisory Board, Board of Directors) should have oversight of climate issues, and executive management
should play its part in assessing these issues to allow for strong corporate governance of climate-related risks and opportunities.

q Prioritize the risks and opportunities:

q Classify the identified climate-related risks and opportunities over the short, medium, and long term, and their impact on the organization’s business, strategy, and financial planning.
2 q Analyze and map how the strategy should evolve basing this on climate-related risks and opportunities.

Develop or q Manage risks: Implement processes for identifying, assessing, and managing climate-related risks, and integrate these into the organization’s overall enterprise risk management.
strengthen the
climate strategy
q Set metrics & targets:
q For climate mitigation: Calculate the company’s GHG emissions in line with the GHG Protocol methodology and set emissions reduction targets approved by Science Based Targets
initiative (SBTi) and in line with SBTi’s Net-Zero Standard.
q For climate adaptation: Develop metrics and targets aligned to the physical and transition risks identified, such as the number of sites exposed to physical risks of climate change
to reduce physical risk exposure, or an internal carbon price to guide decisions.

q Be transparent and report following the TCFD requirements:

3 q The CDSB’s TCFD Good Practice Handbook provides examples of TCFD disclosures.
q The CDP Climate Change questionnaire, which aligns with the TCFD recommendations, is also a helpful tool for companies to report on their climate strategy.
Be transparent and
keep stakeholders
engaged q Keep stakeholders engaged: embed climate-related issues in the open dialogue that the company has with each of its stakeholder groups. For instance, climate-related issues can be
discussed in business reviews with customers and suppliers.

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Climate Strategy Checklist 1
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Focusing sustainability programs through materiality assessments.
Avoiding the ‘reporting trap’ by efficient use of ratings such as the Dow
Jones Sustainability Index, Sustainalytics, MSCI and ISS ESG Corporate
Ratings to drive ESG performance.
Josée van der Hoek
• Sustainability Strategy Development Director
Re-Fresh materiality assessments and the development of winning
sustainability strategies that are aligned with business priorities, including
the development of stakeholder communication. Finch & Beak Spain General +34 6 82 04 83 01
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• Strategy Execution & Project Management
Execute sustainability strategies and improve positive impact, for instance
through Impact Measurement and Valuation, Portfolio Sustainability
Assessment and Circular Economy Sprint.
Climate Strategy Checklist 2