Human activities have contributed to a temperature rise of more than 1°C in the Earth’s climate since the late 1800s. The effects on our climate, as elucidated by the data released by the Intergovernmental Panel on Climate Change (IPCC) in 2021, are without precedent. The global climate is currently undergoing widespread transformations, and its fluctuations are expected to be notably dynamic in the near future. Several studies dedicated to addressing climate change-related issues has unequivocally affirmed that the warming of the climate system is undeniable. The substantial rise in global average temperatures is primarily ascribed to the substantial impact of anthropogenic greenhouse gas (GHG) emissions. The direct consequences of climate-related risks have the capacity to impose considerable financial challenges on companies spanning diverse industries. The probability of experiencing reduced profits and precarious cash flows is heightened, particularly in the aftermath of significant disasters causes by the climate change. To this day, to accurately measuring and predicting the impact of climate change on companies’ portfolios is challenging. The field of climate science is continually evolving in response to new data. Consequently, establishing a direct correlation between non-financial factors as represented as Environment (E), Social (S), and Governance (G), and financial outcomes can be challenging for companies. Therefore, climate scenario analysis is undertaken with the objective of alleviating the risks inherent in climate change.

Climate scenario analysis serve the purpose of evaluating the impact of climate risks on the financial stability of both individual institutions and the broader financial system. Climate scenario analysis systematically assesses the consequences of future events, providing stakeholders with insights into associated risks and opportunities. The adoption of quantitative climate scenarios emerges as the most efficacious approach to scrutinize the interplay between environmental factors, such as greenhouse gas emissions, and financial variables like gross domestic product, carbon prices, and energy prices. Nevertheless, climate scenario analysis is still relatively new in practice. Hence, it is imperative for companies across industries to delve deeper into this subject, as effective management of climate risk becomes paramount to maintaining the sustainability of companies in both non-financial (ESG) and financial side.

Considering this matter, the 7th Global Conference: ESG Management & Sustainability is convened to establish a comprehensive global knowledge network comprising ESG scholars and practitioners across diverse industries. The event will take place on August 6-8, 2024, at ASEEC Tower – Universitas Airlangga, Surabaya and will be one of the largest ESG forums in Indonesia compiling global speakers and serving the opportunity to partake in comprehensive discussions concerning the future of ESG management for companies in the ESG era. Therefore, we encourage future leaders, experts, and practitioners from various industries and companies globally to collaboratively join and participate in the development of new ESG plans and initiatives through this outstanding event.