Scenario analysis continues to be one of the most challenging of the TCFD recommendations for any organization to implement. However, Manifest (formerly Mantle314) and Verability argue that the benefits well outweigh the effort to understand and use scenario analysis. Scenarios provide a framework to understand, approach and manage the complexity that climate change presents to business decisions. It allows an organisation to address the unreliability of historic data and incorporate the uncertainty around details of the transition to a lower-carbon economy.
Scenario analysis provides benefits across business functions. In the paper, we look at the types of insights and benefits that are available for multiple corporate functions such as: finance, corporate affairs, research & development, supply chain and sourcing, production, and marketing and sales.