Forterra: TCFD-aligned climate scenario analysis, guiding capital planning and strengthening product proposition

The Challenge

Forterra, a manufacturer of essential clay and concrete building products, engaged Sillion to conduct a qualitative and quantitative scenario analysis as part of their Task Force on Climate-related Financial Disclosures (TCFD) reporting. The challenge was to elevate the analysis beyond a compliance exercise, demonstrating its strategic value in navigating future risks and opportunities within the construction, architecture, and building materials sectors.

Our Approach

We began with a qualitative assessment to identify Forterra’s most material risks and opportunities, considering future scenarios across the construction and building materials landscape. Once identified, these risks were quantitatively modelled to estimate their financial impact. By focusing on transition risks, with a practical approach to physical risks, we engaged key teams, including Strategy, Sales, and the C-Suite, to integrate scenario analysis into broader business strategy.

Outcomes

• The quantitative analysis highlighted significant differences in embodied carbon across production sites, prompting changes to capital expenditure plans for future site expansion.

• Our assessment of clay-pit resources led to an exploration of lower-carbon product options, supporting Forterra’s sustainability goals. By evaluating alternative materials such as timber and concrete, the analysis underscored the sustainability advantages of bricks, encouraging Forterra to enhance its communications around the environmental benefits of its products.