Climate risk and opportunity analysis
Customer: Dachser SE
Category: Transport / Logistics
Date: December 2024
DACHSER is an international logistics company specializing in the provision of global logistics services. The business model comprises worldwide transport logistics for distribution and procurement, as well as contract logistics as an intelligent combination of transport, warehousing and customized value-added services. The company’s mission is to become the most integrated logistics service provider worldwide and to optimize the logistics balance sheet of its customers. To this end, DACHSER is investing in the improvement and integration of its networks, digitalization, climate protection and its employees.
In view of the growing importance of climate change and the associated risks and opportunities, DACHSER commissioned the DFGE – Institute for Energy, Ecology and Economy – to conduct a joint climate risk and opportunity analysis. The aim of the joint project was to carry out a climate risk and opportunity analysis in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and to meet the requirements of the Corporate Sustainability Reporting Directive (CSRD) with regard to climate risks and opportunities. The analysis took into account both physical and transitory climate risks, the effects of which are particularly relevant for logistics companies.
Physical risks include extreme weather events such as floods, storms or heatwaves, which could have a significant impact on supply chains and transportation routes. Rising sea levels could also pose a threat to important locations and infrastructure. Long-term changes such as an increase in heatwaves could also have an impact on the efficiency and safety of transporting goods.
Transitory risks arise from regulatory and market changes that occur in the course of the transformation to a low-carbon economy. These include, for example, stricter emissions regulations that require greater investment in climate-friendly technologies and alternative drive systems. Rising CO2 prices and changes in customer demand towards more environmentally friendly transportation solutions can also lead to financial burdens and the need for adjustments.
Investing in sustainable technologies can lead to competitive advantages and contribute to new market opportunities. These are just a few examples of the complex climate issues that had to be analyzed and evaluated. The aim of the project was to identify climate-related risks, but also opportunities, and to increase transparency regarding these issues for stakeholders.
Magdalena Droppelmann
Department Head Idea2Net Innovation Framework, DACHSER SE
“We decided to work with DFGE because they have outstanding expertise and in-depth experience in carrying out climate risk and opportunity analyses in accordance with the requirements of the CSRD. DFGE impressed us with its technical expertise and offers tailor-made advice that helps us to optimize our climate strategy.”
Challenges
Understanding climate risks and developing new perspectives
The main challenge for DACHSER was to analyze physical and transitory climate risks in detail and to relate this complex topic to its own company and business model. In addition, climate issues require a new perspective that differs from “traditional” risk management, as physical risks, for example, can cover long time horizons up to the year 2100.
For this reason, the short, medium and long-term effects of these risks were assessed in various scenarios within the project, which help to better understand this perspective. At the same time, it was important to analyze not only risks but also opportunities in the field of climate-friendly logistics in order to be able to make strategic decisions for the future.
Solution
A systematic approach through collaboration and scenario analyses
DFGE took a systematic approach to mastering the challenges. First, a full-day workshop was held in which experts from various DACHSER divisions worked together to identify climate-related risks and opportunities. These cross-divisional discussions were particularly valuable as they further deepened the existing awareness of climate issues and made it possible to identify specific climate-related risks and opportunities for DACHSER.
Scenario analysis was a key tool. DFGE supported DACHSER in modeling the effects of different climate scenarios. This enabled possible climate developments and their impact on logistics processes to be examined. This scenario analysis formed the basis for comprehensive risk management aimed at minimizing risks and exploiting opportunities.
Result
Increased awareness and a sound basis for decision-making
The collaboration between DACHSER and DFGE led to important results. DACHSER was not only able to identify significant climate-related risks and opportunities, but was also able to further raise awareness of the issue through the project. The results will help to develop measures to increase climate resilience in the future. The detailed scenario analysis was particularly valuable, enabling DACHSER to better assess future risks and make well-founded risk management decisions.
By analyzing climate risks and opportunities, DACHSER has taken an important step towards climate resilience. The analysis promotes efficient climate risk management, improves transparency and makes it possible to identify stakeholder expectations. The results also help to meet regulatory requirements and prepare for future regulations. The focus is always on recognizing and exploiting business opportunities in the climate area.
Magdalena Droppelmann
Department Head Idea2Net Innovation Framework, DACHSER SE
“The collaboration with DFGE was extremely professional and goal-oriented. We gained valuable insights into our climate-related risks and opportunities, which will help us to develop concrete measures for the future. We look forward to continuing to work together on projects in the future and driving our sustainability strategy forward.”
