Climate change is no longer an abstract vision of the future. Companies are already feeling its effects today, whether through extreme weather, supply chain disruptions, volatile raw material prices, or changed expectations from customers and investors. The question is no longer whether one addresses climate change, but how well one is prepared.
A Climate Risk Analysis (CRA) helps to systematically examine exactly that: What risks exist? What opportunities arise? And what measures help strengthen one’s own resilience?
Why a Climate Risk Analysis?
Climate risks fundamentally differ from classic business risks. They often act subtly, long-term, and in complex contexts. At the same time, they are becoming a focus of regulatory requirements, e.g., through:
ESRS E1 (European Sustainability Reporting Standards) as part of the CSRD
ISO Standards 14090 & 14091
Requirements of funding programs and ESG ratings
A Climate Risk Analysis not only provides clarity on potential threats but also helps to identify strategic opportunities, for example, through new business models, regional adaptation, or innovations.
Who should conduct a Climate Risk Analysis?
In short: all organizations that want to be robustly positioned in the medium to long term.
The CRA is particularly relevant for:
Companies in climate-exposed industries such as agriculture, construction, energy, tourism, or logistics
Entities with an international supply chain
Municipalities, public utilities, project developers who plan long-term infrastructure
Financial institutions that evaluate investments
SMEs that rely on ESG criteria, funding, or certifications
Tip: Anyone aiming for ISO 14001 certification benefits from having already systematically considered climate risks, e.g., through a CRA according to ISO 14090 or 14091.
The 4 Steps of Climate Risk Analysis – Explained Clearly
The following four steps are based on the international standards ISO 14090 (strategic framework) and ISO 14091 (concrete implementation).
1. Clarify Context & Prepare Analysis
The process begins with defining the scope of the analysis:
Which part of the company, project, or supply chain is being considered?
What geographical and temporal coverage is relevant (e.g., 2030, 2050)?
What climate-related information or data is already available?
Stakeholders should also be involved early on, especially in municipal, public, or decentralized structures.
2. Identify & Assess Risks and Opportunities
At its core, it’s about systematically identifying climate-related risks:
What hazards are relevant to the site or sector? (e.g., heat, water scarcity, heavy rainfall)
Which assets, processes, or groups are particularly exposed?
How sensitive is the company to these hazards?
What opportunities can arise from climate change or transformation processes?
Many organizations use impact chains or risk matrices to assess the probability of occurrence and the extent of damage – both today and with a view to future scenarios. In addition to physical risks, so-called transitional risks should also be considered, for example, due to regulations, market changes, or reputational pressure.
3. Assess Adaptation Capacities
A central question is: How well is the organization prepared for climate-related changes?
Are there already technical or organizational precautions?
How flexible are processes, supply chains, business models?
What resources (time, budget, know-how) are available?
Assessing adaptability helps to set priorities and highlight existing strengths.
4. Develop & Prioritize Measures
Based on the risk and capacity analysis, targeted adaptation measures are developed:
What needs to be secured in the short term (e.g., critical infrastructure)?
What investments or process changes are necessary in the medium term?
Where do innovation or transformation potentials arise?
A structured prioritization – for example, by urgency, effectiveness, and feasibility – supports implementation planning. The results should be integrated into existing control or management systems.
Best Practice: How to Get Started with Climate Risk Analysis
✅ Start small, with a pilot site or a particularly affected process
✅ Use publicly available data sources (e.g., climate impact monitoring, weather services)
✅ Visualize risks using impact chains or scenarios
✅ Document uncertainties as well – perfection is not necessary
✅ Anchor the analysis in existing processes (e.g., risk or environmental management)
Practical Tip: Structured Templates Support Implementation
Anyone who wants to document the CRA or work on it across teams can use structured templates or digital tools. These help to assess risks comparably, track measures, and make progress visible.
An example of a pragmatic approach is our Excel Template for Climate Risk Analysis – developed for SMEs, consultants, and municipal organizations. With the code “Kompass25”, there is currently a 25% discount (valid until 2025-07-31).
Conclusion
A Climate Risk Analysis provides clarity on where vulnerabilities exist and offers the opportunity to position oneself strategically. Especially against the backdrop of new reporting obligations, growing ESG requirements, and scarce resources, it is a crucial lever for long-term resilience.
