After identifying climate risks and opportunities, risk indicators are evaluated based on the degree of impact and probability. After determining the level of risk and opportunity, short-, mid-, and long-term goals are set for mitigation, transfer, control, and acceptance.
Analysis process for climate change risk issues
Analysis results of climate risk issues Issue management approach
Issue management approach
Financial impact of risk issue
Financial benefits of opportunity
Climate physical and transition scenario analysis
FPCC mainly uses the 4 Representative Concentration Pathways (RCPs) defined in the Intergovernmental Panel on Climate Change (IPCC) AR5, in which RCP2.6 is the warming mitigation scenario. RCP4.5 and RCP6.0 are stable scenarios. RCP8.5 is a climate change model for a scenario with high GHG emissions to make predictions of the future.
FPCC considers scenarios for 2030-2050. All plants and upstream and downstream the supply chain are included in FPCC's scenario analysis. The scenario analyzes energy use, water shortage, and flooding of plants under different physical risks, such as different temperatures, climate change, and rainfall.
Summary of assumptions in climate change scenarios