Climate physical and transition risk assessment for Tronox
- Client Name
- Tronox
- Location
- Global
Challenge
Tronox is recognised leader in the mining, production and marketing of titanium dioxide, zircon and other valuable industrial products. Having set climate goals, including a net-zero by 2050 target, Tronox has rolled-out regional decarbonization roadmaps.
However, with regulations expanding and tightening globally, the physical and transitional risks stemming from climate change are becoming more pronounced and urgent. Tronox is proactively taking steps to assess climate-related risks and opportunities and required the support of an expert advisor.
Solution
Our climate specialists supported this work by undertaking a physical and transitional risk assessment to meet regulation and update Tronox’s resilience and adaptation plans. The project also identified and quantified potential climate related opportunities.
Our team took a phased approach which was built on climate science to deliver credible insights, this included:
Task 1 – Physical risk assessment
Analyzed physical risks across the value chain, quantified the financial impact of physical risks on assets and provided resilience and adaptation recommendations.
- Review of current assessment.
- Value chain and critical dependencies mapping.
- Physical risk assessment.
- Resilience and adaptation plan.
Task 2 – Transitional risk & opportunity assessment
Quantified the key transitional risks and financial impact of top opportunities. The project also undertook a gap analysis against European Sustainability Reporting Standards (ESRS) S2 and International Financial Reporting Standards (IFRS) S2 to identify potential gaps and provide recommendations.
- Transition risk assessment.
- Opportunities assessment.
- Carbon pricing mechanism review.
- International Financial Reporting Standards (IFRS) S2 report recommendations.
Impact
Our team was able to provide a refreshed understanding of how climate hazards could play out across Tronox’s plant and supply chain. This project supports Tronox to align with global reporting regulation, become more resilient in the face of a changing climate and discover potential opportunities and innovation to facilitate a low carbon world.
