A climate strategy is relevant for companies of all sizes, provided they cause greenhouse gas emissions, are exposed to climate-related risks, or face increasing expectations from the market, regulations, and stakeholders. What’s decisive is not company size, but the significance of climate aspects for the business model, value creation, and future viability.
Companies with high energy or resource intensity are particularly in focus, as their emissions directly contribute to climate impact and are often addressed by regulations. But companies with complex supply chains are also affected: Scope 3 emissions, such as those from upstream products, transport, or product use, account for the largest share of the carbon footprint in many industries. Without a climate strategy, these emissions cannot be transparently managed or credibly reduced.
Furthermore, pressure from external requirements is increasing. Transparency requirements from stakeholders in connection with sustainability reporting as well as expectations from ESG ratings require companies to understand and strategically address their climate impact. Even companies without formal reporting obligations are increasingly confronted with corresponding inquiries – for example, from customers or business partners.
A climate strategy is also a central instrument of risk management. Physical risks such as extreme weather events and transitional risks from regulation, market changes, or technological upheavals can have significant impacts on locations, supply chains, and cost structures. The systematic analysis of these risks is hardly possible without a conceptual framework.
Last but not least, an effective climate strategy is closely intertwined with a company’s overarching sustainability strategy and enables the active management of climate protection measures. Companies that develop a climate strategy early on create transparency, reduce risks, and credibly position themselves for a climate-compatible future.
