Climate change has reached a critical magnitude, creating physical (acute and chronic), transitional (changing technologies, regulations, policies, and stakeholder expectations), and liability risks. The speed at which these changes are happening makes it imperative for organizations to understand their cascading impacts and engage on a path of prudent mitigation and orderly adaptation.
McKinsey helps organizations develop robust qualitative and quantitative approaches to identify, measure, and manage their exposure to climate risk under all relevant scenarios.
Our comprehensive approach leverages deep industry knowledge, change-management expertise, proprietary risk frameworks, and advanced analytics to help our clients in three key ways:
Decarbonization-Pathway Optimizer: Our digital tool helps countries or regions design decarbonized-target systems for industry sectors and quantify associated needs for capital- and operating-expenditure investment.