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In this section of the Guidebook, you will understand how to think about the case for climate action, the advantages it may generate, and the risks it may help you mitigate. By the end of this step, you will understand why your company may want to take climate action, some of the larger considerations in this context, and how to set about developing the case for your company.

1. Understand climate action as a source of sustainable competitive advantage

Climate action can be an enormous source of advantage for your company, improving your market positioning, cost of operations, market valuation, increased margins, new low cost innovation opportunities and more.

2. Identify and assess climate related risks

Climate change poses risks to your company and supply chain, both due to physical impacts and business and transition risks that emerge, as many markets are moving toward low-carbon products and services. To succeed in a net-zero world, your company cannot fall behind.

3. Understand and address risks and opportunities

Your company should understand how climate risks and opportunities could influence plans moving forward. Using appropriate scenarios in conjunction with potential climate actions, your company can estimate climate change impacts and potential opportunities from a climate transformation. These can help inform your climate transformation trajectory.

4. Deep Dive: understand current and upcoming regulations, policies, and initiatives

There are many influential and impactful regulations, policies, and initiatives relating to climate change around the world, including standard-setting initiatives, reporting standards, and government policies. Your company should have a clear view of how these will affect its future.