Kao Data_ESG Report 25-26_SP - Flipbook - Page 61
Appendix
Climate risk & opportunities
Below is a summary of climate scenarios used to inform our climate risk register:
SSP1 - 2.6 (1.8O C BY 2100)
SSP2 - 4.5 (2.7O C BY 2100)
SSP5 - 8.5 (4.4O C BY 2100)
Paris-aligned trajectory.
Re昀氀ects current global climate commitments by Governments.
CO2 emissions double by 2050 amid rapid, fossil-fueldriven economic growth.
Achieve net-zero CO2 emissions post-2050 with a
societal shift towards sustainability.
CO2 emissions steady, then fall mid-century, not reaching
net-zero by 2100.
Energy-intensive lifestyles prevail, exploiting fossil-fuel
resources.
Increase investments in education and health,
reducing inequality.
Slow progress toward sustainability, with uneven development
and income growth.
Physical impacts from climate change occur but are
largely manageable.
Challenging physical impacts from climate change.
Physical impacts from climate change are extremely
challenging to manage, especially in developing nations.
Climate risk register
The risks identi昀椀ed are then assessed against three Time Horizons:
With all the inputs discussed above we have created an ISSB-aligned climate risk
register, as shown in the tables below. Risks are scored as follows:
Likelihood (L) × Impact (I) = Risk Rating (Low / Medium / High / Critical)
Low Impact
• Short-term: 0–3 years
• Medium-term: 3–10 years
• Long-term: 10+ years
Medium Impact
High Impact
Critical Impact
Energy Pricing (TR2), AI Demand
(TR5)
High Likelihood
–
Supply Chain ESG Risk (LR3)
Heatwaves (PR2), Regulation (TR1),
Customer Expectations (TR4)
Medium Likelihood
–
ESG Disclosure (LR1)
Flooding (PR1), Storms (PR5),
Embodied Carbon (TR3)
–
Low Likelihood
–
Greenwashing (LR2)
–
–
Kao Data ESG Report 2025-26
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