Our Approach

We take a risk-led approach to climate and supply chain challenges — focused on what could reasonably affect enterprise value, operational continuity, and decision-making. Our work is proportionate, defensible, and grounded in recognised risk frameworks.

Our Philosophy is Risk-led, Not ESG-led

Climate risk is treated as a core enterprise risk — not a standalone ESG exercise. We focus on how physical and transition risks interact with assets, operations, and supply chains, using established frameworks such as TCFD, IFRS S2, and AS/NZS ISO 31000.

We do not provide assurance, legal opinions, or engineering design. Our role is to support clear thinking, defensible prioritisation, and decision-useful outcomes.

Our Approach

Our work follows a structured but flexible methodology designed to translate climate and supply-chain risk into practical, defensible action.

Step 1

Define decision-relevant scope

We establish a proportionate scope grounded in how the organisation creates value — including assets, operations, and critical supply-chain dependencies — rather than defaulting to generic ESG boundaries.

Outcome: A clear, defensible scope aligned to real decisions.

Step 2

Identify material climate and transition risks

We identify relevant physical and transition risks across the value chain using recognised risk frameworks and scenario-aware thinking, calibrated to the organisation’s size, sector, and maturity.

Outcome: A structured view of material climate risks suitable for governance and disclosure.

Step 3

Assess exposure and vulnerability

We assess how identified risks translate into real exposure — considering asset sensitivity, supplier concentration, geographic risk, and operational dependencies — without unnecessary modelling complexity.

Outcome: Clarity on where and how climate risk could realistically impact the business.

Step 4

Prioritise risks and response options

We prioritise risks based on likelihood, consequence, and controllability, and evaluate response options that are practical, proportionate, and aligned with existing business processes.

Outcome: A defensible basis for action, investment, and risk acceptance.

Step 5

Embed into decisions and disclosure

We support integration into governance, decision-making, and external reporting — ensuring climate risk informs capital allocation, procurement strategy, resilience planning, and disclosure without overstating certainty.

Outcome: Climate risk embedded where it matters, and able to stand up to scrutiny.

What this delivers

Our approach is designed to support informed decision-making — not just compliance. The outputs are practical, proportionate, and defensible under board and stakeholder scrutiny.

Typical Outcomes

- Decision-relevant climate risk scope and boundaries
- A structured view of material physical and transition risks
- Supply-chain exposure clarity (dependencies & points of failure)
- Prioritised response options aligned to enterprise value
- Inputs to governance, capital allocation, procurement & disclosure

Access NXTNRG Research

Whether you’re assessing transition risk, benchmarking strategy, or preparing for regulatory change, our research supports clear, defensible decisions.