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 Horvath is a partner at PwC with extensive expertise in sustainable finance and the asset management industry, including both financial and real assets. Since joining PwC Switzerland in 2011 and PwC Luxembourg in 2018, he has led significant projects in regulatory audit and advisory, focusing on the asset management sector. Michael has played a key role in implementing the EU regulatory framework for sustainable finance, including SFDR, taxonomy regulation, and CSRD, as well as other regulatory initiatives such as DORA, AML/CFT, CSSF circular 18/698, and MICA. He is a certified public accountant in Switzerland and Liechtenstein and has contributed to designing compliance frameworks and operational implementations driven by regulatory changes. His notable client projects include defining target operating models for Luxembourg AIFMs, digital operational resilience planning, AML/CFT framework implementation, and ESG/sustainability process design, supported by his involvement in training and regulatory advisory.

Pavel Kostyuchenko is a partner and Fellow of the Institute and Faculty of Actuaries, specialising in actuarial consulting and risk modelling for the financial sector with over 20 years of experience, including 17 years at PwC. He leads PwC Luxembourg's actuarial and risk modelling services practice and previously headed actuarial practices in PwC’s CEE offices in Asia. Pavel advises insurers and reinsurers on reserving, financial reporting, IFRS17, Solvency II, business planning, and acquisitions. He contributes to PwC’s global Actuary of the Future and Actuarial Modernisation initiatives and supports the UK Institute and Faculty of Actuaries on the profession’s future in overseas markets. His expertise includes risk capital frameworks, strategic asset allocation, and ALM, serving clients in insurance, asset management, and the public sector.

Julien Jacqué is a partner in PwC Luxembourg’s technology consulting department, co-leading the ESG Non-financial sector service offering and ESG Data & Technology services across sectors. With over 12 years of experience, he supports operational and financial clients in launching Sustainability and ESG transformation programs, guiding them from ESG strategy definition to business model transformation and regulatory reporting. Specialising in transport, logistics, manufacturing, and financial services, Julien leads large-scale transformation projects and international teams, including ESG reporting upgrades for telecom clients. His expertise includes ESG strategy, Net Zero, business intelligence platforms, and end-to-end project leadership for major clients in Europe and beyond.