A process model approach to integrate future climate change into corporate strategies

To prepare for climate-related risks, a scientifically sound forward-looking integration and disclosure of climate-related data is key. Furthermore, companies also face an increasing demand in non-financial reporting, such as the use of climate change scenarios as part of risk analyses as well as for meeting the Technical Screening Criteria for a substantial contribution or Do No Significant Harm (DNSH) to the environmental goals to show alignment of economic activities with the EU Taxonomy Regulation. Currently, however, companies are still leaving notable gaps in the incorporation of forward-looking climate data and scenarios into reporting and long-term planning strategies. Against this background, the paper describes and discusses the development and concept of an eight-step process model as an innovative way to integrate future climate change into corporate processes. This problem-driven approach is developed in close collaboration and co-creation with companies. It comprises the following phases: i) inventory, ii) prioritization, iii) identification, iv) availability, v) enablement, vi) derivation and implementation of measures, vii) evaluation, and viii) process reinforcement. Also taking into account existing regulations, standards and recommendations for risk assessment and reporting, the process model aims to enable decision makers in companies to identify and assess climate change-related impacts and to take regional climate change information into account. Based on this information – combined with additional local knowledge –, companies can identify suitable adaptation options and develop transformative risk-management solutions. This includes new forms of collaboration, embedded in a framework of a transdisciplinary co-production process. Therefore, a close and trust-based cooperation between internal and external stakeholders right from the outset is a key factor for success.