Diploma: Aligned 30+ businesses on sector-specific CRROs through collaborative qualitative scenario analysis for climate resilience

The Challenge

Diploma, a decentralised group of specialist businesses supplying technical products and services, required a qualitative scenario analysis to identify Climate-Related Risks and Opportunities (CRROs) that would be applicable across the group and within its 30+ individual businesses. The challenge was to ensure that each of Diploma’s three sectors—Life Sciences, Seals, and Controls—were actively engaged and that the identified CRROs were tailored to each sector’s specific needs.

Our Approach

We conducted extensive research, drawing on scenarios from the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC) to develop tailored climate-related worldviews for Diploma. During a workshop, we presented these future scenarios to key leaders, including Managing Directors from their most significant business acquisitions. This collaborative setting allowed us to work closely with stakeholders, facilitating the identification of relevant CRROs at both the group and operational levels.

Outcomes

• Through this process, Diploma gained a comprehensive understanding of climate impacts relevant to its diverse sectors and regional markets, providing a foundation for strategic resilience. By engaging stakeholders at every level, we fostered alignment on CRROs that are meaningful both at the group level and for individual operating companies. This collaborative approach not only satisfied stakeholders but also ensured that Diploma is equipped to proactively address climate-related challenges across its portfolio.