According to the FSB Task Force on Climate-related Financial Disclosures (FSB TCFD) recommendations, we put a greater emphasis on scenario analysis to assess the opportunities and risks from measures taken to limit temperature change. Given the uncertain nature, probability and magnitude of these issues, scenario analysis is a particularly well-suited method to complement traditional financial analysis. We build on pilot models developed by The CO-Firm, KECH climate research and a growing body of literature to suggest ideas as to how scenario analysis could be performed and included in company valuations and investment decision-making. A series of reports will examine these insights on a select number of sectors and companies, starting with utilities. You can read the report here.