As concern around climate change intensifies, sustainability managers across the food and agriculture sector are facing a critical challenge: how to prepare their organizations for the growing risks and opportunities associated with climate impacts.

From droughts and floods to shifting regulations and investor expectations, climate-related risks are no longer theoretical. They’re operational, financial, and reputational. That’s why conducting a climate risk assessment is becoming a strategic imperative.

What Is a Climate Risk Assessment?

A climate risk assessment helps companies identify and evaluate both physical risks (e.g., extreme weather, water stress, flooding) and transition risks (e.g., policy changes, market shifts, reputational pressures) that could impact their operations, supply chains, and financial performance.

By understanding these risks, companies can:

  • Forecast potential disruptions to assets, suppliers, and customers.
  • Prioritize high-risk locations and supply chain partners.
  • Develop adaptive strategies and invest in resilient infrastructure.

Why It Matters Now

Regulatory momentum is accelerating. The EU’s Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS) require companies to disclose climate-related financial risks. In the U.S., California Senate Bill 261 mandates similar disclosures, aligning with the globally recognized Task Force on Climate-Related Financial Disclosures (TCFD) framework.

These frameworks emphasize transparency, scenario planning, and forward-looking analysis — tools that sustainability managers can use to guide strategic decisions and build stakeholder trust.

Operational & Financial Value

Climate risk assessments are not just about compliance. They offer real business value:

  • Operational Resilience: Companies can respond faster to disruptions, diversify supply chains, and reduce reliance on vulnerable resources.
  • Financial Insight: Quantifying risk exposure helps prioritize investments and avoid costly surprises.
  • Strategic Advantage: Proactive climate planning positions companies to seize emerging opportunities — from regenerative practices to climate-smart technologies.

Take the Next Step Toward Climate Resilience

If your organization hasn’t yet conducted a climate risk assessment, consider when an assessment may fit into your sustainability roadmap. A proactive approach not only ensures compliance; it positions your company to lead.

Our team at Pinion partners with food and agriculture companies to help them confidently navigate climate-related risks. Through our Climate Risk Assessment service, we deliver customized insights into both physical and transition risks — pinpointing the assets, facilities, and supply chain segments with the highest risk exposure and most significant opportunities. This analysis empowers organizations to make informed decisions, strengthen resilience, and uncover strategic opportunities for growth.

Ready to Get Started?

Reach out to our sustainability team to schedule a meeting or learn more about how we can support your climate strategy.