Climate change and your role in the transition to a lower-carbon future

Climate change
  • Service

We are in the middle of a climate emergency, where climate-related risks are indisputable. Globally, societies, businesses, and our natural environment are affected by the impacts of rising global temperatures caused by record levels of greenhouse gas (GHG) emissions in the atmosphere. Each of these impacts are associated with a financial risk that can be attributed to climate change. Climate change is therefore considered an increasing business and investment risk.

To prevent catastrophic impacts to human health, economic growth, livelihoods, food, water, human security, and vital ecosystems, global warming should be limited to 1.5°C above pre-industrial levels. Global GHG emissions must be reduced by at least 45% by 2030 and net zero GHG emissions should be achieved by 2050 (from a 2010 baseline) to achieve a 1.5°C world (IPCC Special Report, 2018). However, current global efforts by countries, cities, businesses and investors to reduce GHG emissions are grossly insufficient.

Urgent action is needed to reduce GHG emissions and build resilience to current and future impacts of climate change.

Our approach to solving one of the most important problems of our lifetime is to work closely with the private and public sectors to transition to net zero and help build resilience in the face of a changing climate. Leveraging the latest science, analytical approaches, technology and innovation, we help clients economically and effectively transition to net zero, preserve their competitiveness and protect the natural environment.

In light of upcoming regulations and rising pressure from investors and the general public to decarbonise and future-proof your business, lowering GHG emissions is no longer considered enough. Companies are expected to work towards increasing resilience of society and the economy through adapting to climate change impacts. The ultimate question is: are you as a company doing your part?

More and more companies are declaring their commitment to combat climate change and its associated impacts. More than 880 companies worldwide have committed to massively reducing their GHG emissions across their operations and value chains. All industries have to contribute towards this common goal to adequately reduce CO2 emissions.

Our services

PwC Belgium is equipped to design and implement successful climate strategies, conduct climate scenario analysis, perform risk and opportunity assessments, assist in the process of setting a science based target for various sectors and much more. We would like to be your partner on your journey to developing comprehensive, economically-sound climate considerations across your entire value chain.

Our services have been defined according to the interdependent aspects of climate change that affect a business. This is best illustrated in the “Climate House” structure depicted on the right: 

Building climate resilient businesses

Future-proofing your business is key to business continuity and resilience. Climate change is anticipated to test the bounds of business resilience. With this, significant, fast-paced changes are expected to impact physical business infrastructure, cross-sectorial markets, regulatory transitions, social unrest trends and human vulnerability. 

Business resilience requires analysing and responding to the impacts of macro changes under various scenarios. Climate change scenario analysis is one of the key methods used to monitor business vulnerabilities and allow businesses to adequately respond to the changes that could affect each operation and region. Physical and transition risks and opportunities are assessed and can feed into better understanding the shortcomings and future opportunities that a business or organisation can harness in light of climate impacts.

The recommendations of the Task Force on Climate-related Financial Disclosure (TCFD) encourages full disclosure and awareness of all finance-related risks arising from climate impacts such that businesses can continue operations and seize opportunities posed. 

To understand the full financial extent of climate change, a detailed risk assessment should be conducted using climate scenario analysis as the basis of this assessment. These are just some of the climate-related offerings PwC Belgium can afford local and international clients.

Aiming for net zero and GHG emissions accounting

Reaching net zero by 2050 is the only way we can give ourselves a more than 50% chance of avoiding a catastrophic climate breakdown. Because of this, committing to net zero is becoming a strategic requirement for most investors, companies and governments. However, achieving net zero will require radical enterprise and supply chain transformation, including identifying and scaling emerging technologies and disruptive business models.

According to the Global Green Growth Institute (GGGI), based on the International Energy Agency (IEA), among others, the transition to a CO2-neutral economy will require investments of USD 16.8 trillion by 2030. This is indicative of the massive transformation the economy is facing, but also the opportunities it brings with it. The EU Action Plan is already pointing the way today, indicating that investments of EUR 260 billion per year will be required in Europe over the next 10 years.

With expertise across climate change, strategy and business transformation, we can help you transition to a net zero future. By mapping clients’ existing GHG footprint/inventories and assisting clients to develop net zero targets and strategies, decarbonisation is achievable while remaining resilient to future impacts of climate change.

The decarbonisation of direct and value chain activities is not only a long-term ambition, but should be implemented across all timeframes in a gradual approach. Science based targets are a requirement under the CSRD, while aligning your target with a 1.5°C world.

Aligning with existing and upcoming climate regulations

Following on from the Nordic Sustainability Reporting Standards (NSRS), the Corporate Sustainability Reporting Directive (CSRD) is an upcoming reporting requirement for all large and listed companies across the EU. The introduction of the CSRD aims to assist investors, society and other key stakeholders to understand the impact of these companies on global and local sustainability and highlight key efforts being made by companies towards ESG considerations. 

The first reporting requirement from an environmental perspective for the CSRD is climate change. Climate related reporting will become a legislative consideration for over 50 000 companies (around 2 800 of which are in Belgium) across the EU by 2025, and there is preparation required for compliance with this.

We are able to assist companies in aligning their data and reporting to the requirements of the CSRD framework, as well as assure the data published, for verification and validation purposes.

Exploring the opportunities of nature-based solutions

The unprecedented rate of nature and biodiversity loss is threatening the foundations of society and presents substantial risks to corporates and financial institutions alike. In response to this, the Taskforce on Nature-related Financial Disclosures (TNFD) launched in June 2021.

Businesses that seize the opportunity to align with the principles of the TNFD can build sustainable value and resilience in their operations and supply chains, as well as boosting stakeholder confidence and managing growing regulatory risk.

Building climate change resilience forms part of this integrated value creation brought about by nature and associated solutions. Nature-based solutions are a growing field and PwC aims to partner with trailblazing organisations on their journey to integrate these into their business operations, future strategy and risk management.

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Contact us

Marc  Daelman

Marc Daelman

Partner, PwC Belgium

Tel: +32 477 50 00 38

Stephanie Hold

Stephanie Hold

Manager, PwC Belgium

Tel: +32 490 44 20 49