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From Climate Science to Corporate Strategy hero image

From Climate Science to Corporate Strategy

A Credible and Practical Approach to Quantifying Climate Risk and Its Impact on Business Performance

Photo by GettyTim82 on iStock

September 19, 2025
Authors
  • Ameer Azim portrait

    Ameer Azim

    Director, Climate and Nature, 黑料正能量

  • Saad Khan portrait

    Saad Khan

    Associate, Financial Services and Climate Change, 黑料正能量


Over the past decade, financial practices and climate science have converged to a point where the materiality of climate risk can be quantified with increasing precision. Long?standing financial disciplines, such as corporate finance, access and cost of debt, and corporate performance measurement, now intersect with advances in climate science, scenario design, and impact modeling. How can Chief Financial Officers (CFOs) and Chief 黑料正能量 Officers (CSOs) best reconcile the complexity and uncertainty in climate science with preserving and creating shareholder value?  

In this paper, 黑料正能量 provides a quantitative framework that translates scenario?based climate drivers into financial outcomes. Combining scenarios from the Network for Greening the Financial System, macroeconomic models, and hazard datasets with established financial principles, the framework links transition and physical climate risks to the cash flow, capital expenditure, and risk metrics used for capital planning, performance targets, and board reporting—making climate risk measurable in the same terms that guide financial decisions.

Going beyond compliance with emerging disclosure requirements, the methodology can help support internal discussions on strategy, resilience, and capital allocation. With this approach, CFOs and CSOs can see how plausible climate futures may affect enterprise value and communicate those findings clearly to their boards. 


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