Climate action amid uncertainty: 3 steps to future-proof your business

By Gregg Demers, Head of ClimatePartner USA

Despite regulatory rollbacks and political uncertainty, climate change remains an urgent business reality. The past ten years have been the hottest on record, and the increasing frequency of extreme weather events continues to disrupt businesses, harm communities, and strain economies.

The damages from climate disasters will reach an annual cost of $38 trillion by 2049, placing infrastructure, supply chains, and operations at risk. Businesses that fail to act now risk falling behind and struggling to meet the expectations of customers, employees, and shareholders.

Therefore, companies of all sizes need a climate action plan that builds business value by considering both voluntary and regulatory drivers. Voluntary drivers, including supplier requirements, competitive positioning, supply chain risk, physical risk to operations, investor expectations, and broader sustainability initiatives, are on the rise. Meanwhile, climate disclosure regulations are constantly in flux and subject to political whims, creating uncertainty around timing and requirements.

A climate action business plan does not need to be complex or costly—but it is essential for every business, and at a minimum should include the following foundational activities:

Measure carbon emissions
Assess climate risks and opportunities
Define next steps

Measure carbon emissions

Calculating a company’s greenhouse gas (GHG) emissions is the first step in understanding climate risks to a business. This involves working with an expert like ClimatePartner to collect emissions data across scopes 1, 2, and 3, covering supply chains, operations, logistics, travel, and more. The data is then matched to the appropriate emission factors and converted to the common unit of carbon dioxide equivalent (CO₂e).

When aggregated, these figures reveal which activities contribute most to your company’s carbon footprint. The result is a comprehensive corporate carbon footprint report that can respond to vendor requests, comply with regulatory reporting requirements, and serve as the foundation of an organization’s sustainability strategy. Calculations should be performed according to the Greenhouse Gas Protocol Corporate Standard, the internationally recognized framework for carbon accounting and the basis for most climate disclosure regulations.

A full greenhouse gas inventory typically takes two to three months to complete for the first time, with the level of effort dependent on data availability and the complexity of your company’s operations and supply chain.

Assess climate risks and opportunities

A clear understanding of your carbon footprint lays the groundwork for assessing climate risks and identifying potential opportunities. This process is primarily qualitative, relying on third-party research and internal cross-functional interviews. Ideally, this process is incorporated into existing risk management frameworks within the company but is often completed as a stand-alone exercise. Where warranted, your company’s finance team may be involved and help to quantify the financial impact of identified risks.

This analysis will result in 3-5 focus areas to prioritize your company's climate risks and opportunities. These should be examined in greater detail to develop mitigation strategies and actionable plans. Document your findings in alignment with the Task Force on Climate-related Financial Disclosures (TCFD) standards—now managed by the IFRS/ISSB—which serves as the foundation for most climate risk regulations.

For companies new to climate risk assessments, partnering with a specialist like ClimatePartner can simplify the process, enabling a comprehensive evaluation in four to six months, depending on complexity.

Define next steps

Once you measure your emissions and assess potential risks and opportunities, you can outline a clear and actionable climate strategy. Here are some practical next steps to consider:

Build the business case: Align your climate action strategy with business and customer needs, demonstrating measurable returns.
Update your carbon footprint annually: Re-calculate your carbon footprint each year to track progress.
Reduce emissions: Form cross-functional teams to target emissions hotspots.
Set reduction targets: Use your corporate carbon footprint to establish science-based reduction targets.
Support climate projects: Offset short-term emissions by investing in high-quality climate projects that contribute to the UN’s Sustainable Development Goals.
Communicate progress: Share key sustainability information through your website or annual reports. Consider certifications like ClimatePartner certified to enhance transparency and build consumer trust.

Future-proofing your business

Given the complexity and evolving nature of climate change, it can be overwhelming to know where to start. By following these three foundational steps—measuring your footprint, assessing risks and opportunities, and creating an actionable plan—you will be off to a strong start. The scale and pace of future actions should be based on the needs of your business, customer expectations, and regulatory requirements. Regardless, these actions will stand the test of time, strengthen your business, and position your company for long-term, sustainable business success.

ClimatePartner has over 20 years of experience supporting companies of all sizes on their climate action journey. We meet you where you are and help prioritize actions that maximize impact within your budget.