Wärtsilä has an important role in meeting the world’s increased demand for energy in a sustainable way. This is the cornerstone of our commitment to sustainability, and decarbonisation is at its core.
In 2023, we conducted a scenario analysis in order to clarify to our stakeholders Wärtsilä’s position and approach with regards to the various risks and opportunities that climate change poses to us. In this project, we identified three transitional risks, four transitional opportunities, and two physical risks as the main impacts arising in connection with climate change. These key risks and opportunities were further evaluated in two detailed science-based climate and emissions scenarios. The aim of the scenarios was to explore variances in two very different possible futures, within three time-horizons. The scenario analysis is available in Wärtsilä’s Annual report 2023: Wärtsilä’s climate scenarios based on Task force for Climate-related Financial Disclosure (TCFD) recommendations.
Wärtsilä’s disclosures following the TCFD recommendations are listed in the adjacent table with indication to the location in Annual report 2023 where the topics are addressed. In the coming years, we will continue developing our climate change related reporting further. Climate scenarios are regularly revised and updated.
Recommended disclosure | Location in Annual report 2023 |
Governance |
|
a) Describe the board’s oversight of climate related risks and opportunities | Governance: Board of Directors, Risks and risk management 2023 |
b) Describe management’s role in assessing and managing climate-related risks and opportunities | Governance: Group Management, Risks and risk management 2023 |
Strategy | |
a) Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term | This is Wärtsilä: Strategy |
b) Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning | Sustainability: Climate change and environment: Wärtsilä’s climate scenarios based on TCFD recommendations |
c) Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario | Sustainability: Climate change and environment: Wärtsilä’s climate scenarios based on TCFD recommendations |
Risk Management | |
a) Describe the organization’s processes for identifying and assessing climate-related risks | Governance: Risks and risk management 2023 |
b) Describe the organization’s processes for managing climate-related risks | Governance: Risks and risk management 2023 |
c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overall risk management | Governance: Risks and risk management 2023 |
Metrics & Targets | |
a) Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process | Sustainability: Climate change and environment, Sustainability data - Environment |
b) Disclose Scope 1, Scope 2, and if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks | Sustainability: Climate change and environment, Sustainability data - Environment |
c) Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets | Sustainability: Sustainability targets, Climate change and environment |