Understanding the impacts of climate change on our business
It is becoming increasingly clear that the world is not transitioning fast enough to avoid the worst impacts of climate change.1 Many scientists believe it is now all but inevitable that we will breach the important 1.5°C increase in global average temperatures, being the measure that indicates whether the collective actions taken are enough for us to achieve ‘net zero’ for our planet.
There is an urgent need for us to adapt and build resilience against devastating climate-related impacts. Noting that we also need to continue to decarbonise the global economy as quickly as possible in parallel, as that is the only real solution.
At PwC, we have been transforming our own business in response to climate change for a number of years, and have evolved our approach to encompass broader environmental matters along the way.
In October 2024, we released our 2024 Network Environment Report which outlines our environment strategy, the actions we are committed to and our progress so far.
1 IPCC, 2023: Climate Change 2023: Synthesis Report, IPCC, AR6 Synthesis Report
Physical climate risk for PwC
We have assessed the physical impacts of climate change on our own business by looking across our global network and using physical risk analysis to identify areas that are at highest risk of extreme weather such as floods, wildfires, droughts and more. We then used our analysis to develop plans to adapt and make our business more resilient.
Read more about our physical risk journey here and explore how we are adapting our business.
Strategic risks and opportunities for our business
Findings from our climate scenario analysis
Our climate scenario analysis continues to guide our strategy. It also drives the myriad of actions that we are taking, which are designed to address the business risks and opportunities that climate change will pose for our business. The major strategic implications for our business arising from climate change are captured below.
Both scenarios |
Paris-aligned scenario (1.5 °C) |
No mitigation scenario (>4°C) |
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| There are a number of risks and opportunities which will arise regardless of the climate scenario. | This scenario drives a greater level of transition impacts given the dominance of policy changes and disruption as the economy transitions to a low carbon world. | This scenario drives a greater level of physical impacts given the dominance of climate and weather related events, which are likely to take place. |
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You can find more details about our methodology, approach, scenarios and impacts framework in our full report.
