Sustainability and climate change risk

Concern about climate change and sustainability has gained an unprecedented importance at the global level. There is growing interest in these matters by society and consumers, investors are demanding greater transparency in relation to the management of Environmental, Social and Corporate Governance risks, and the green and sustainable products market is growing rapidly. These changes are being supported by government commitments and by initiatives from regulators and supervisors that aim to achieve a sustainable economy and meet the objectives of the Paris Agreement, as well as to improve the sustainability management effort and increase its transparency.

Sustainability and Climate Risk

Watch video

All this is leading to a context where it is essential to evaluate the new Environmental, Social and Corporate Governance risks and opportunities, turning these factors into elements to be integrated into the business strategy and management.

Management Solutions has extensive experience in projects integrating the climate and sustainability dimension into the strategy and management of different types of organizations, with five main lines of work:

  • The first line of work has to do with assessing a company’s sustainability situation against regulatory requirements and stakeholder expectations. After this analysis, a Master Plan is proposed to achieve the aspirational target model.
  • Another line of work involves the development of an Environmental, Social and Corporate Governance information model to ensure regulatory reporting requirements are complied with, especially in the European Union, best practices are observed and internal reporting needs are met.
  • The MS team also has experience in the analysis, development and implementation of climate risk measurement and assessment methodologies, including the analysis of physical and transitional scenarios, as well as methodologies for measuring emissions and aligning them with the set objectives.
  • Another key aspect is the integration of Environmental, Social and Corporate Governance risks into the management framework, including policy review, appetite setting, and redefinition of the underwriting model for customers and transactions with sustainability criteria.
  • Finally, MS has team with expertise in identifying and measuring the social impact of projects and investments, as well as in quantifying the externalities, both positive and negative, of carrying out the business activity as a whole.