Climate risk management

Climate change is no longer a distant threat—it’s a business-critical risk impacting operations, supply chains, investments, and regulatory compliance across industries.

Climate change poses significant financial risks to businesses worldwide. Studies estimate that by 2050, climate-related damages could amount to 10-20% of global GDP. Additionally, the World Bank projects that climate change could push an additional 68 to 135 million people into poverty by 2030. These figures underscore the urgent need for robust climate risk management strategies to mitigate potential economic losses and enhance business resilience.?

From extreme weather events and resource scarcity to regulatory shifts investor scrutiny, companies must proactively manage climate risks to safeguard their business resilience, financial performance, and reputation.

This training provides a comprehensive, industry-agnostic approach to identifying, assessing, and mitigating climate risks, helping organisations transition to a low-carbon, future-proof business model.

By the end of this training, participants will:

• understand physical, transition, liability risks related to climate change;
• learn about key regulatory frameworks (CSRD, EU Taxonomy, ISSB, TCFD, CBAM, etc.);
• identify financial operational risks associated with climate change;explore
• climate risk modeling and scenario analysis;
• gain insights into climate adaptation and mitigation strategies for businesses.

• Understanding climate risk in business
  • What is climate risk, why does it matter?
  • Types of climate risks:
    • Physical risks
    • Transition risks
    • Liability risks
  • Impact of climate risk on business models, supply chains, and financial stability
• Climate risk and regulatory landscape
  • CSRD sustainability reporting: climate disclosures and risk integration
  • EU Taxonomy and SFDR: climate impact in financial decision-makingISSB and TCFD guidelines: risk assessment and scenario modeling
  • Carbon pricing and CBAM (Carbon Border Adjustment Mechanism): managing regulatory costs
• Case studies: climate risk exposure and business impact
  • Hurricane and flooding impact on manufacturing, logistics
  • Carbon pricing and regulatory penalties in high-emission industries
  • Supply chain disruptions from droughts and extreme weather
  • Legal liabilities for companies failing to meet climate pledges
• Climate risk management and adaptation strategies
  • Climate risk assessment methodologies: scenario analysis
  • Operational resilience planning for extreme weather events
  • Decarbonisation and emission reduction strategies
  • Sustainable supply chain management and resource efficiency
  • Investment in climate risk insurance and green financing
• Next steps for businesses
  • Integrating climate risk into corporate governance and ESG strategy
  • Strengthening internal processes for risk monitoring and reporting
  • Leveraging technology and data analytics for climate risk assessment
  • Aligning with investors, regulators, and stakeholders on climate action

This training is coordinated by Michael Horvath, Pavel Kostyuchenko and Julien Jacqué, Partners at PwC Luxembourg.

Michael has acquired a strong financial and regulatory audit as well as advisory background and significant experience leading projects in the asset management sphere.

In the recent past, Michael has been particularly involved in various regulatory projects related to the implementation of the EU regulatory framework for sustainable finance (i.e. SFDR, taxonomy regulation, CSRD) at entity and product level. Michael is involved in various other regulatory projects for clients, from DORA, AML/CFT regulation over CSSF circular 18/698 to MICA.

Pavel is the leader of PwC Luxembourg's actuarial and risk modelling services practice.

On the risk management side, Pavel specialises in risk capital frameworks and model development for risk measurement, risk monitoring and capital modelling. He assists clients in developing strategic asset allocation frameworks and Asset-Liabilities Management (ALM).

Julien is the EMEA Sustainability in Finance Transformation Leader at PwC and is actively engaged in PwC EMEA’s CSRD Centre of Excellence. With over 11 years of consulting experience, he currently oversees PwC LU’s Sustainability Reporting and Transformation services.

Julien holds a degree in Mechanical Engineering and Corporate Finance and has provided extensive support to clients in the implementation of data and technology solutions. Over the past few years, he has assisted both financial and corporate clients in their sustainability journey, spanning strategy, transformation, and reporting. Julien possesses both theoretical knowledge and practical expertise in ESG regulations such as CSRD, EU Taxonomy, EU ETS, and CBAM.