URB-D.06.A - Climate-Related Risk Identification and Quantification
Does the company identify and quantify climate-related risks?
The WBA Urban Benchmark measures and ranks the world's most influential companies on their efforts to shape sustainable, inclusive and resilient urban environments, tracking how companies address essential urban needs while respecting planetary boundaries across dimensions including decent work and human rights, environmental and climate impacts, social inclusion, and sustainability leadership. The 2026 edition assessed 300 companies across four key industries shaping urban environments: real estate, construction and engineering, transport, and utilities. Companies were scored on 24 urban-specific indicators plus 18 core social indicators, spanning four measurement areas: sustainable governance, inclusive cities, healthy cities, and climate change and resilient cities. The benchmark is designed to incentivise the private sector to take adequate responsibility for its role in ensuring affordable, safe and inclusive urban environments for all. More information can be found here.
Urban areas are increasingly vulnerable to the impacts of climate change, such as extreme
weather events, rising temperatures and altered precipitation patterns (IPCC, 2022). Climate
adaptation is crucial to reduce vulnerabilities, protect assets and enhance resilience against these
risks. Companies can strengthen their focus on proactive adaptation by aligning their efforts with
frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD), the Business
Leaders Guide to Climate Adaptation & Resilience (WBCSD), ISO 14090:2019 (Adaptation to Climate
Change) and the CDP Climate Change Questionnaire. These guidelines can help companies
systematically assess climate-related risks, integrate adaptation plans into strategies and implement
solutions, such as resilient infrastructure and operational changes (UNDRR, 2015). Strategic
investments in adaptation not only ensure long-term sustainability of urban environments and
inhabitants but also safeguard business operations. Moreover, collaboration with stakeholders and
ongoing innovation are essential for addressing these challenges and ensuring urban resilience.
Research Guidance
The company must disclose the following information related to climate-related risks.
1\. Identification and assessment of risks, including relevant hazards, extreme events, and the scope of affected activities and value chain components.
2\. Description of risk analysis, including qualitative insights (e.g., size, scope, emerging risks) and quantitative assessments (e.g., likelihood, sensitivity, financial or physical impacts).
3\. Use of climate data and projections, including historical trends, future scenarios, and the time horizons (e.g., mid- and long-term) considered.
weather events, rising temperatures and altered precipitation patterns (IPCC, 2022). Climate
adaptation is crucial to reduce vulnerabilities, protect assets and enhance resilience against these
risks. Companies can strengthen their focus on proactive adaptation by aligning their efforts with
frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD), the Business
Leaders Guide to Climate Adaptation & Resilience (WBCSD), ISO 14090:2019 (Adaptation to Climate
Change) and the CDP Climate Change Questionnaire. These guidelines can help companies
systematically assess climate-related risks, integrate adaptation plans into strategies and implement
solutions, such as resilient infrastructure and operational changes (UNDRR, 2015). Strategic
investments in adaptation not only ensure long-term sustainability of urban environments and
inhabitants but also safeguard business operations. Moreover, collaboration with stakeholders and
ongoing innovation are essential for addressing these challenges and ensuring urban resilience.
Research Guidance
The company must disclose the following information related to climate-related risks.
1\. Identification and assessment of risks, including relevant hazards, extreme events, and the scope of affected activities and value chain components.
2\. Description of risk analysis, including qualitative insights (e.g., size, scope, emerging risks) and quantitative assessments (e.g., likelihood, sensitivity, financial or physical impacts).
3\. Use of climate data and projections, including historical trends, future scenarios, and the time horizons (e.g., mid- and long-term) considered.