Nordic Sustainability provided Grundfos, a global leader of energy-efficient water solutions, with its first full climate risk assessment, laying the foundations for strategic integration of its outputs and enabling long-term business resilience.
The impact
- Physical and transition risks assessed, and material risk financially quantified
- CDP-ready outputs aligned to the latest publication
- Strategic integration enabled through engagement and awareness across the business
Grundfos can now meet its CDP ambitions and use the results to build operational resilience.
The client perspective
We have greatly valued the Nordic Sustainability team’s support and their consistently high level of professionalism and expertise. The climate risk assessment will be a key element in delivering on our CDP Climate ambition and an important step in strengthening engagement across various departments in our organisation on climate transition planning.
The challenge
Grundfos needed to conduct a full climate risk assessment with financially quantified impacts, to support its CDP disclosure and build operational resilience. Key challenges included:
- A global spread of assets with varying risk profiles
- Ensuring services remain relevant as climate risks intensify
- Translating climate risk impacts into financial outcomes
Our approach
The project was structured across 3 phases: 1) a climate risk exposure analysis, 2) a climate vulnerability analysis, and 3) a financial quantification.
Core steps:
- During the first phase of the project, we identified which climate risks Grundfos was materially exposed to, using leading risk analysis platform partner Jupiter Intelligence.
- In the second phase, we conducted a vulnerability analysis on Grundfos’s operations to understand to what extent Grundfos was prepared to manage and mitigate those risks.
- In the final phase, we quantified the financial impacts of the identified material climate risks, feeding into ERM financial impact thresholds, supported by a methodology document, all designed to inform external disclosures.
Grundfos now has a complete climate risk analysis, fit for CSRD and CDP reporting, in the form of a tool that documents the full process, findings, extracts from Jupiter, and can be used in future cycles.
Looking ahead
Grundfos is now positioned to understand its material climate risks and financial impacts, enabling the organisation to prioritise mitigation actions and build operational resilience. Throughout the project, Nordic Sustainability engaged internal stakeholders to ensure the outputs were meaningful, grounded in Grundfos’s context, and capable of building awareness across the business.
Looking for support on how to build climate resilience
Many organisations face similar challenges when engaging with climate risk. At Nordic Sustainability, we support organisations not only in conducting climate risk assessments, but in turning the results into decisions. If you are working on building your climate resilience, we would be happy to start a conversation.