Climate Risk Analysis as a Basis for CDP Reporting and Strategic Planning
Customer: Lansinoh Laboratories Inc.
Category: Healthcare
Lansinoh Laboratories Inc., a leading global provider of breastfeeding, birth, and postpartum products, pursues a consistent sustainability strategy throughout its entire value chain. With a presence in over 60 countries and a strong market position in several product categories, the company not only sets the highest quality standards for its products, but also for its environmental and social responsibility. In this context, the integration of climate-related risks into corporate planning processes is becoming increasingly important.
Against this backdrop, Lansinoh decided to enter into an in-depth collaboration with DFGE – Institute for Energy, Ecology and Economy. Following a successfully completed project to qualitatively assess climate-related risks and opportunities, a quantitative extension of the analysis was the logical next step. The aim was to reliably quantify physical climate risks at key company and supplier locations worldwide. The results were to be used for strategic decision-making and external reporting, particularly in the context of CDP.
Dr. Simone Freitag
Global Risk & Compliance Manager, Lansinoh Laboratories Inc.
“The decision to choose DFGE was an easy one for us: their many years of experience, sound scientific methodology, and outstanding expertise in the field of climate risk modeling were decisive factors for us. With their support, we were able to take our risk analyses to a new level—data-driven, globally comparable, and compatible with our corporate planning.”
Challenges
Identify, compare, and assess Global Climate Risks
Like many internationally active companies, Lansinoh faced the challenge of consistently recording physical climate risks across locations and systematically classifying their potential impacts. The complexity of this task stems from several factors: On the one hand, the available climate-related data varies considerably from region to region, which makes it difficult to compare and verify the results. On the other hand, the probability of extreme weather events occurring, for example in time horizons up to 2080, is subject to considerable uncertainty. Risk assessment is particularly challenging in the supply chain, where transparency about site characteristics or infrastructure conditions is often limited.
In addition, product-specific characteristics also influence risk assessment. Lansinoh, for example, uses lanolin, a raw material of animal origin that is heavily dependent on climatic conditions in agriculture. Changes in precipitation patterns or temperature trends can indirectly affect the availability of such raw materials. These interrelationships illustrate how physical climate risks can affect not only a company’s own operations, but also upstream stages of the value chain. A purely qualitative assessment is not sufficient here – what is needed is a data-based, globally compatible risk analysis that is both scientifically sound and operationally usable.
Solution
Quantitative Location Analysis with delta-climate™ from DFGE
In close cooperation with DFGE, a software-based analysis of physical climate risks at locations relevant to the company was carried out. The tool used was delta-climate™, a globally applicable multi-natural hazard model that simulates the socioeconomic impacts of climate change based on geodata-based modeling. The underlying methodological foundation was developed jointly with ETH Zurich as part of the CLIMADA development and is internationally recognized.
In addition to Lansinoh’s central production site, the analysis also included selected suppliers. With the help of delta-climate™, climate-related hazards such as heat, heavy rain, tropical storms, and river flooding were modeled under various IPCC scenarios and for several time horizons.
This comprehensive methodology made it possible to quantitatively assess the physical exposure of the sites and their vulnerability to climatic impacts. The potential damage to the site infrastructure and possible production interruptions were presented in monetary terms, which made it possible to compare the climatic risks from an economic perspective.
The holistic analysis approach combined scientific depth with operational relevance. Not only was the potential risk made visible, but also its dynamics over time – a crucial aspect for corporate resilience planning.
Result
Strategic Clarity Through Data-Driven Risk Insights
The results of the quantitative analysis provided Lansinoh with a reliable and comparable basis for decision-making for the first time for the strategic further development of its climate adaptation strategy. Concrete hazard intensities could be modeled for each location considered, differentiated according to climate scenarios and time periods. This made it clear how risks such as storms or flooding could change over the decades under different emission pathways.
Some results confirmed previous assumptions, while others were surprising. For example, it was found that locations with generally moderate risk still had considerable damage potential due to high location values. Similarly, individual natural hazards – such as windstorms – appeared to be more dynamic in their projected increase in intensity than initially expected. The financial assessment of the damage helped to make the business relevance of these climatic developments tangible.
These new insights not only strengthen Lansinoh’s internal risk management, but also the quality and depth of its external sustainability communication—particularly in the context of CDP reporting. The analysis also made an important contribution to embedding climate-related risks in overarching management processes and underscores the strategic importance of data-driven resilience planning.
Heike Hinrichs
Chief Officer Global Corporate Planning, Lansinoh Laboratories Inc.
“DFGE’s in-depth risk analysis is an important milestone for our global climate strategy. It provides us with a reliable basis for decision-making and at the same time strengthens our external transparency.”
Outlook
From Risk to Resilience – Data-Driven and Collaborative
Based on the analysis, Lansinoh plans to systematically integrate the findings into its existing risk management and supply chain management systems. In the future, regularly updated site assessments will be carried out to adequately take into account the dynamic nature of climate risks. In addition, dialogue with selected suppliers will be intensified in order to jointly develop adaptation measures – for example, with regard to potential heat stress, flood risks, or infrastructure vulnerabilities.
This proactive, cooperative approach is intended not only to strengthen the resilience of the entire value chain, but also to contribute to the early fulfillment of regulatory requirements, such as the EU Corporate Sustainability Reporting Directive (CSRD).
