Quantifying your net-zero strategy: a balancing act between decarbonisation, risk and opportunity
Globally, organisations are increasingly committing to net-zero targets. Yet, as companies outline their ambitions, there is a growing recognition of the complexity and challenge in developing plans to achieve them. These plans must not only consider decarbonisation but also the associated risks and opportunities of a company’s transition.
This paper, a collaboration between Marsh and Risilience, explores how companies can use risk to justify investments in decarbonisation. Further, it features an illustrative case study to consider the five steps organisations can take to build a robust net-zero plan, including:
- Quantifying baseline risk
- Setting goals and targets
- Quantifying bottom-up strategies
- Optimising a cost-benefit roadmap
- Implementing, monitoring and reporting
Using a quantitative approach, the paper demonstrates how businesses can achieve greater clarity of the cost-benefit of different decarbonisation strategies, alongside views of the return on investment and an understanding of the decision-support tools that contemplate transition risks and opportunities.
