Climate risk assessment

A climate risk assessment is a systematic and comprehensive evaluation of the potential risks and vulnerabilities that an organization, community, or region faces due to climate change and extreme weather events. Climate risk assessments are essential for understanding how climate change may impact various aspects of society, including infrastructure, ecosystems, economies, and human well-being. Here are the key components and steps involved in conducting a climate risk assessment:

Scope and Objectives: Define the scope and objectives of the assessment. What specific aspects of climate change and related risks will be assessed? What are the goals of the assessment?

Stakeholder Engagement: Identify and engage with key stakeholders, including local communities, government agencies, environmental organizations, businesses, and experts. Their input and perspectives are critical for understanding and addressing climate risks.

Data Collection: Gather relevant data from various sources, including historical climate records, climate models, environmental studies, socioeconomic data, and local knowledge.

Climate Projections: Analyze climate projections and models to understand how temperature changes, precipitation patterns, sea level rise, and extreme weather events may evolve in the future.

Risk Identification: Identify potential climate-related risks and vulnerabilities in different sectors, such as infrastructure, agriculture, water resources, public health, and ecosystems.

Impact Assessment: Assess the potential impacts of climate change on the identified risks. This includes quantifying the extent of damage, disruption, or harm that may occur under different climate scenarios.

Likelihood and Severity: Evaluate the likelihood and severity of each climate risk. This involves assessing the probability of occurrence and the magnitude of impact.

Vulnerability Assessment: Analyze the vulnerability of exposed assets, communities, and ecosystems to climate risks. Vulnerability factors may include social, economic, and environmental factors.

Adaptive Capacity: Assess the adaptive capacity of the system to respond to and recover from climate-related impacts. This involves considering existing resilience measures and adaptation strategies.

Risk Prioritization: Prioritize climate risks based on their likelihood and severity. Identify which risks require immediate attention and resources.

Resilience and Adaptation Strategies: Develop strategies and actions to enhance resilience and adapt to climate risks. This may involve infrastructure improvements, policy changes, community planning, and ecosystem restoration.

Cost-Benefit Analysis: Conduct a cost-benefit analysis to evaluate the economic feasibility of implementing resilience and adaptation measures. This helps in resource allocation and decision-making.

Scenario Analysis: Explore different climate scenarios and their potential impacts on risks. This provides a range of possible futures to consider in planning.

Communication and Stakeholder Engagement: Communicate the findings of the climate risk assessment to relevant stakeholders, including the public, policymakers, and affected communities. Ensure that the assessment’s results are understood and can guide decision-making.

Monitoring and Evaluation: Establish a system for ongoing monitoring and evaluation of the effectiveness of resilience and adaptation measures. This allows for adjustments as new information and climate conditions emerge.

Legislation and Policy Alignment: Ensure that the results of the assessment align with relevant legislation and policies, and advocate for changes or improvements if necessary.

A climate risk assessment is a proactive approach to managing and mitigating the impacts of climate change. It helps organizations, communities, and governments prepare for the challenges posed by a changing climate and make informed decisions to protect the well-being of individuals and the environment.

Service coverage

The variety, breadth, and depth of the projects where Arcus can be a resource are made unique by each client’s specific needs. By providing a very small sample of projects we’ve completed, we can help you understand how and when to use our services. Visit the links below to find out more about a specific problem or opportunity you would like to address.

Below is a sample of the range of services that Arcus has provided to clients.

  • A survey of 2,350 consumers and 1,320 business leaders for feedback on sustainability trends
  • Architecting a multi-year change strategy for a Fortune 500 company
  • Mentoring a CEO on organizational change
  • Excellence transformation of a leading B2B services company
  • Creating a new sales deployment model for a healthcare company
  • Developing a position evaluation and compensation model for a professional medical association   
  • Improving services to customer segments by deepening their understanding of customer attitudes

“Arcus manages to consistently deliver tangible results on market research and strategy projects. They combine deep business expertise, powerful research capabilities, and innovative thinking to deliver substantial value.”

– Vice President, Nikon