Partnering with a Fortune 500 leader on turning climate risk into financial insight
As global climate regulations evolve and investor expectations sharpen, companies are stepping up to integrate climate risk into core financial strategy.
A Fortune 500 leader based in the United States partnered with Ethos to strengthen its climate disclosure practices and prepare for a more resilient, future-proof business model.
Together, we created a scenario-based risk analysis aligned with ISSB, TCFD, and CSRD frameworks – quantifying financial impacts across multiple warming pathways and time horizons.
The outcome - a clear, actionable roadmap embedded in the company’s ERM system, revealing cost-saving opportunities, enhancing governance, and equipping teams with tools for long-term, climate-informed decision-making.
The challenge
Navigating financial climate risk and regulatory complexity
The company faced a clear and pressing objective: to better understand how climate-related risks could financially impact its business across multiple plausible futures.
The client sought to conduct a comprehensive financial materiality analysis in accordance with the ISSB’s standards, and to quantify climate risks using methodologies aligned with the Task Force on Climate-related Financial Disclosures (TCFD). Moreover, the results needed to be operationally relevant and fully compatible with the company’s existing Enterprise Risk Management (ERM) system.
Beyond these technical requirements, the project required alignment with the EU’s Corporate Sustainability Reporting Directive (CSRD), making it essential to connect global frameworks and emerging compliance needs. More than meeting compliance, the client sought to leverage this work to strengthen internal sustainability governance and improve decision-making at both strategic and operational levels.
Our approach
From scenario to strategy
Ethos employed a research-driven, collaborative methodology tailored to the client’s unique needs. We began by defining materiality thresholds grounded in the company’s specific risk profile and governance structure. This step was fundamental: rather than applying a one-size-fits-all framework, we rooted our assessment in the client’s unique business context, making the findings directly usable within the ERM system.
Using advanced scenario analysis, Ethos modelled how different warming pathways – 1.5°C, 2°C, and 3°C – could lead to financial risks in areas such as operations, supply chain, fuel costs, infrastructure exposure, and customer behaviour. These risks were quantified in monetary terms (USD) across short-, medium-, and long-term time horizons, providing leaders with a clear view of the scale and timing of potential impacts.
We also facilitated meaningful engagement with internal and external stakeholders. Through workshops, interviews, and surveys involving employees and customers, we captured a broad perspective on key risks and potential responses. This helped build internal buy-in and ensured the findings were positioned for effective adoption within the business.
Throughout the project, Ethos maintained full alignment with ISSB and CSRD reporting frameworks, helping the client meet investor and regulatory expectations globally. Crucially, all insights were integrated with the company’s existing ERM processes, turning risk identification into actionable, operational practice.
The results
A future-proof roadmap for clarity, action and impact
This partnership resulted in a climate risk roadmap grounded in robust financial analysis and tailored to the aviation sector’s unique challenges. The client gained a quantified, scenario-based understanding of climate risks, along with a clear set of mitigation strategies and policy recommendations. These insights translated directly into operational practices, aligning climate priorities with strategic and financial planning.
Ethos also delivered knowledge-sharing tools and reference materials to support long-term adoption by sustainability and risk teams.
The outcome: enhanced transparency, improved resilience, and a more informed, proactive approach to climate risk – positioning the company for sustainability leadership in a rapidly transforming industry.
