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An international agrochemical company performs climate scenario analysis to include in TCFD disclosures.

An international agrochemical company performs climate scenario analysis to include in TCFD disclosures. The risk department hires an analyst with experience in physical risk scenario analysis.

What scenario analysis action will the analyst most likely recommend to evaluate physical climate risk?

A.

Use a sector benchmark to understand the company wildfire risk for facility operations.

B.

Use sectoral emissions trajectories up to 2050 to predict exposure to flooding events over the next 30 years.

C.

Use historical data on hazard occurrences to identify potential supply chain vulnerabilities from changes in hurricane frequencies.

D.

Use annual instead of decadal climate precipitation models to achieve the most accuracy in climate risk prediction.

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