Climate-related opportunity
Potential positive effects related to climate change for the undertaking. Efforts to mitigate and adapt to climate change can produce opportunities for undertakings. Climate-related opportunities will vary depending on the region, market, and industry where an undertaking operates.
Climate-related opportunities refer to the positive possibilities that companies can exploit as a result of climate change and global efforts to reduce greenhouse gas emissions. These opportunities should not only be seen as a response to the challenges posed by climate change, but also as active avenues for innovation that are opened up through new approaches in corporate strategy. Climate-related opportunities can be categorized into various groups, including resource efficiency, the transition to sustainable energy sources, the development of new products and services, the exploration of new markets, and the enhancement of corporate resilience.
The evaluation of these opportunities increasingly takes place through the application of scenario analyses, structured according to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). Companies analyze both the risks and the opportunities in order to develop informed strategies. Regulatory requirements, such as the EU taxonomy and the Corporate Sustainability Reporting Directive (CSRD), demand transparent reporting on climate-related opportunities and their integration into corporate governance.In practice, numerous examples of climate-related opportunities can be observed: for instance, there is a growing demand for efficient technologies for water treatment in light of increasing drought periods. The development of innovative insurance products to protect against extreme weather events or the digital efficiency enhancement in production processes are also notable examples. In a rapidly changing economy, climate-related opportunities are not only a response to regulatory requirements, but also a crucial element for sustainable growth and competitiveness.
