Industrial climate risk is assessed across three critical dimensions: facility-level physical damage, the impact of water scarcity on operational costs, and pressure from the EU Carbon Border Adjustment Mechanism (CBAM). CIRRUS delivers climate risk analysis tailored to the industrial sector through a methodology proven via the Ford Otosan and TSKB references.
SECTORAL RISKS
The specific manifestations of physical and transition risks in your sector.
The impact of heat waves, extreme precipitation, flooding, and drought on production capacity and worker productivity. In industrial climate risk assessment, facility location analysis calculates the monetary impact of each hazard on production downtime and repair costs.
The operational and financial impact of water scarcity on process cooling and raw material supply. As part of industrial climate risk assessment, basin discharge projections are produced using a rainfall-runoff model; the impact of water scarcity on unit production cost is calculated monetarily. Applied in the Ford Otosan project across four facilities and critical suppliers.
Rising carbon border tax costs on EU exports for the cement, steel, aluminum, and fertilizer sectors. In industrial climate risk analysis, CBAM exposure is calculated by jointly modeling export volume, carbon intensity, and carbon price projections to determine the post-2026 cost impact.
The impact of critical raw material and component suppliers' climate risk exposure on production continuity. In industrial climate risk assessment, supplier locations are also included in the analysis to produce a supply chain vulnerability map. In the Ford Otosan project, this covered the Turkey and Craiova (Romania) facilities together with critical suppliers.
CIRRUS SERVICES
10 climate hazards × 3 scenarios × 3 time horizons. Industrial climate risk analysis for a single facility or multiple locations. Delivered in a TCFD- and TSRS 2-compliant output format.
Basin discharge projections and the monetary impact of water scarcity on production costs. A priority analysis service for high-water-dependency facilities as part of industrial climate risk.
CBAM cost projections and compliance strategy for industrial companies exporting to the EU.
A physical climate risk and water risk assessment was carried out using regional climate models for production facilities and critical suppliers in Turkey and Europe. The financial impact of water scarcity on operational continuity and production costs was modeled and reported. An integrated climate risk methodology was applied in the industrial sector with multi-country scope and supply chain integration. You can access the IPCC's latest reports on the international scenarios used in climate risk assessments here.
The CIRRUS team prepares climate risk assessments tailored to your sector’s dynamics.