Scenario Analysis Resources and Guidance

Climate scenario analysis is a widely used and recommended tool for assessing the potential impacts of climate change and other systemic risks on businesses and their investments. However, scenario analysis is a complex process, requiring careful consideration of how physical climate impacts interact with political, economic, technological, and behavioural factors. As scenarios are increasingly used to shape investment decisions, decarbonization strategies, and transition planning, it is critical to acknowledge the limitations of the current approaches used including long-term linear temperature climate scenarios and integrated assessment models.

Without a clear understanding of the assumptions that are having to be made using these tools, the gap between projected outcomes and reality will continue to widen, leading to significant misalignment in strategic and financial decision-making.

This resource hub brings together insights and practical guidance to support decision makers in using scenario analysis more effectively. Through narrative driven approaches, case studies, and expert commentary, these tools aim to build awareness and provide practical next steps.