Keller: Conducted quantitative scenario analysis enhancing TCFD-alignment and climate resilience

The challenge

Keller, a FTSE250 global engineering services company, engaged Sillion’s support in conducting a quantitative scenario analysis to align with TCFD requirements, focusing on physical and transition risks. Starting with a pilot approach targeting specific risk areas, the analysis gradually expanded to cover Keller’s North American, EU, and Australian operations over subsequent years.

Our approach

Our analysis highlighted how indirect factors, such as the rising costs of carbon-intensive materials and potential shifts in client demand, could impact Keller’s operational resilience. This insight encouraged exploration into sustainable alternatives within Keller’s supply chain. Additionally, by modelling various emissions restriction scenarios across the EU, we provided data that informed Keller’s fleet strategy to support longer-term alignment with anticipated regulatory shifts.

For Keller’s operational locations, we modeled multiple physical risks, offering tailored insights into the Group’s approach for evaluating contract risk and enhancing climate resilience across key regions.

Outcomes

• The scenario analysis facilitated Keller’s integration of climate change into their risk management system, reinforcing climate considerations as a key risk. Quantitative results also validated the resilience of Keller’s broader strategy, illustrating how mitigation actions align with identified risks.

• Sillion’s drafting of Keller’s TCFD statement provided a clear articulation of the Group’s approach to its most significant transition and physical risks, supporting Keller’s ongoing transparency and strategic planning.