
Ann Leonard
The sustainability team at BDO has seen firsthand that embracing climate risks and opportunities not only strengthens an organisation’s resilience but also opens the door to real savings, innovation, and competitive advantage. Yet we’ve also noticed that it can be challenging for an organisation to embrace climate considerations.
A strange thing happens when you bring up climate risk in a business setting. People’s eyes glaze over, assuming that what they are about to hear is do-gooder nonsense that has nothing to do with them. This happens even though most senior leaders are more than comfortable discussing market and geopolitical risk, or currency volatility.
So, what is different about ‘climate risk’? Is it that people don’t trust the science because it can’t provide precise predictions of the weather in five years’ time?
That’s not how climate risk works - and frankly, it’s not how business works, either. Nobody expects precision in other business risks – they plan with ranges, scenarios and hedges.
I believe we’re not framing climate risk in terms our business leaders understand. We’re talking in our own technical language, hoping the message lands by virtue of its urgency. It doesn’t, and it’s time we got smarter about that.
Scenario planning is the bridge
One of the most effective ways to make climate risk real for business leaders is to reframe it through something they already use and trust: scenario planning.
Scenario planning is how companies deal with uncertainty. It’s how they plan for a currency shift or model supply chain disruption. Companies don't need perfect foresight - they need a range of plausible futures, and a strategy that works across them.
We can apply the same thinking to climate.
These are business questions. And climate scenario analysis can help answer them - or at the very least, help leadership start asking better questions.
| 23 January 2026 |

Ann Leonard
That’s what we’ve been working on at BDO. When we conducted a climate scenario analysis across our global network, we looked at physical risks (like flooding, wildfires, extreme heat) for over 850 offices worldwide, and we considered transition risks related to regulation, reputation, and market dynamics.
Was it perfect? No. Was it deep and localised for every country? No! But it gave us a map and a starting point for conversation.
And here’s what we learned.
Lesson one: make the data relevant
If we want climate risk to be taken seriously, we must anchor the data in what matters to business leaders. That means explaining the relevance of the data using less theory and focusing more on business implications.
Communicating climate insights as responsible business leaders - rather than climate specialists - helps move climate from an abstract threat to a set of concrete insights that feed directly into business planning, enabling leaders to prioritise investments, adapt strategies, and allocate resources where they will have the greatest impact.
Lesson two: make it personal
One of our team members put it best: climate risk is not a separate issue, it’s a lens, something to apply to the business concerns you already have.
We’ve found that by personalising the climate conversation - not just by geography but by job function - it starts to land because we are shifting the message to what people already understand and care about, and what they feel they have some influence over.
Lesson three: make risk the way in
Sustainability doesn’t always have a seat at the table. But risk does.
That’s why we’re starting to engage more closely with our internal risk leaders. If we want to move climate from the sidelines to the strategy table, we have to make friends with the people who manage risk for a living. That means speaking their language, embedding climate risk into familiar frameworks, and demonstrating how climate affects business continuity and enterprise resilience.
When climate is treated as another element of risk - rather than a separate moral issue - it can join the conversation where decisions are made.
Looking ahead
In 2026, our largest BDO firms will be required to conduct their own climate risk and opportunity evaluations, with some firms already having started. That’s encouraging. But the real value isn’t in the reports and checklists - it’s in the conversations. It’s about using the evaluations as a launchpad to ask better questions: What if? What then? And what can we do now?
A call to climate communicators
If you're someone who already understands the importance of climate risk, here’s my ask:
And above all, remember that if we are going to effect change, sustainability must become a business issue - not just a moral one.