The climate resilience cycle: Using scenario analysis to inform climate‐resilient business strategies

Udeke Huiskamp; Bauke ten Brinke; Gert Jan Kramer

doi:10.1002/bse.2982

journal article Open Access Jan 25, 2022

The climate resilience cycle: Using scenario analysis to inform climate‐resilient business strategies

Udeke Huiskamp

Bauke ten Brinke

Gert Jan Kramer

Business Strategy and the Environment Vol. 31 No. 4 pp. 1763-1775 · Wiley

View at Publisher Save 10.1002/bse.2982

Abstract

AbstractClimate change affects the business environment, and companies need future‐oriented information to build climate resilience. To this end, companies are encouraged to conduct climate change scenario analysis, as recommended by the Task Force on Climate‐Related Financial Disclosures (TCFD). However, companies' actual adoption of this practice is limited as they lack a straightforward scenario analysis implementation process and relevant climate change knowledge. This research develops an implementation process by clarifying the concept of resilience into a stability and a change domain and by specifying the type of focal questions for these two domains. Next, a scenario typology guides the selection of reference scenarios, and two standard scenario methods guide the tailoring of these reference scenarios to company‐specific scenarios. By structuring this process in five steps and specifying input and process requirements, we provide an implementation process called the climate resilience cycle. By applying the cycle in transdisciplinary teams of climate change experts and company staff with knowledge about the company value chain, we bring in the required knowledge. To become climate resilient, the outcomes of the climate resilience cycle need to be integrated in the business planning and the overall company strategy. We argue that implementing the cycle as a new company routine contributes to the development of dynamic capabilities like sensing, seizing and transforming, which have been proven to be essential for integrating sustainability in company strategies. Once begun, we show how the cycle can become part of a company strategy process.

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Metrics

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Citations

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References

Details

Published: Jan 25, 2022
Vol/Issue: 31(4)
Pages: 1763-1775
License: View

Authors

U

Udeke Huiskamp

Copernicus Institute of Sustainable Development Utrecht University The Netherlands

B

Bauke ten Brinke

Corbion Group Netherlands B.V. Amsterdam The Netherlands

G

Gert Jan Kramer

Copernicus Institute of Sustainable Development Utrecht University The Netherlands

Cite This Article

Udeke Huiskamp, Bauke ten Brinke, Gert Jan Kramer (2022). The climate resilience cycle: Using scenario analysis to inform climate‐resilient business strategies. Business Strategy and the Environment, 31(4), 1763-1775. https://doi.org/10.1002/bse.2982

The climate resilience cycle: Using scenario analysis to inform climate‐resilient business strategies

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