Time for strategic climate scenario analysis

Alex Hindson, Kate MacKenzie
7/17/2025
Climate change presents complex challenges for businesses, prompting the need to rethink insurance coverage, profitability, and risk pricing under various climate scenarios. With global temperatures projected to rise by 3.1°C—well above the Paris Agreement’s 1.5°C target—companies face increasing physical and transition risks that render historical data unreliable for future planning. Climate Scenario Analysis (CSA) has become a crucial tool for helping organizations navigate this uncertainty, allowing them to assess potential futures and align strategies accordingly. Financial institutions and regulators are prioritizing CSA, recognizing that its effectiveness lies not in creating new scenarios, but in selecting and applying existing, science-based ones that align with specific strategic goals.
 

Originally Published by Crowe UK, on 10 July 2025
Aerial view of lake
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