Risk Management

Climate Risks

Climate risks have become a major issue for financial institutions and businesses alike. From the physical impacts of climate change (extreme events, water stress, etc.) to the risks associated with the energy transition (regulatory developments, carbon market, stranded assets), a proactive and integrated approach is essential. Command Strategy helps you identify, measure and manage these risks, aligning your strategies with environmental requirements and stakeholder expectations.

Our support

  • Integration of regulatory requirements for sustainable finance: Comply with regulatory frameworks (European Taxonomy, SFDR, CSRD, Basel III/IV, TCFD) and integrate ESG (Environmental, Social and Governance) criteria into risk management.
  • Setting up extra-financial and climate reporting: Structuring reporting obligations (carbon footprint, climate stress tests, analysis of exposure to physical and transitional risks) to ensure transparency and meet the expectations of investors and regulators.
  • Assessing carbon neutrality commitments: Develop greenhouse gas emission reduction strategies and integrate low-carbon transition scenarios into strategic planning.
  • Mapping climate risk exposures: Identify and assess physical risks (natural disasters, water stress, rising sea levels) and transition risks (regulatory changes, divestment of fossil fuels, carbon market volatility).
  • Development of climate risk monitoring indicators: Implement key metrics (carbon footprint of assets, alignment with Paris Agreement targets, ESG score) to steer risks and opportunities linked to the energy transition.
  • Climate stress tests and prospective scenarios: Assess the impact of climate change on investment portfolios, sector exposures and the resilience of business models.
  • Analysis of physical and transition risks: Develop models to quantify the financial impact of extreme climatic events and regulatory changes affecting certain sectors (energy, transport, real estate).
  • Transition scenarios and carbon stress tests: Simulate economic trajectories according to changes in climate policies (carbon prices, fossil fuel taxation, regulatory restrictions) to anticipate impacts on balance sheets and investment strategies.
  • Calculation of exposure to stranded assets: Identify at-risk assets (coal-fired power plants, polluting infrastructure) likely to lose value rapidly as a result of the energy transition.
  • Implementing ESG risk analysis and management solutions: Integrating technological platforms to measure, monitor and anticipate climate impacts on asset portfolios and supply chains.
  • Automated reporting and ESG transparency: Digitizing environmental data collection and improving the quality of climate reporting to meet the requirements of investors and regulators.
  • Optimizing sustainable investment evaluation processes: Integrating environmental and climate criteria into investment decisions and due diligence processes.
  • Training in climate risk and sustainable finance: raising teams’ awareness of the impact of climate risks on financial markets, regulatory obligations and adaptation strategies.
  • Developing a culture of climate risk management: Encourage the integration of climate considerations into strategic and operational decisions, in line with sustainability objectives.
  • Support for energy transition and carbon footprint management: Helping organizations to define low-carbon strategies, adapt to new regulatory requirements and strengthen their resilience in the face of climate challenges.

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124 Bis Avenue de Villiers – 75017 Paris
Phone: +33 (0)1 42 94 09 48