Climate scenarios

The TCFD (Task Force on Climate-Related Financial Disclosures) is an international set of recommendations to promote voluntary and consistent reporting on climate-related financial risks for organisations. The aim is to provide investors and financial and other stakeholders with more insight. The focus is on physical and transition risks. The ‘Impact on people and planet’ section provides further details on the risks for Stedin associated with climate change and climate adaptation.

Physical risks

Climate change comes with four types of relevant physical risks: rising sea levels, heavy precipitation, extreme temperatures and drought. These risks threaten our infrastructure, with the impact of sea level rise expected to overshadow the consequences of the other three in view of the geographical location of our service area.

Physical risks

Potential effects

Sea level rise

  • Damage to energy infrastructures

  • Damage to assets

  • Damage in the upstream and downstream energy chains

Heavy precipitation

  • Damage to energy infrastructures

  • Damage to assets

  • Damage in the upstream and downstream energy chains

  • Damage to the transport and distribution infrastructure

  • Increase of gas outage duration

Extreme temperatures

  • Damage to assets

  • Increased demand for electricity to power ACs

Drought

  • Damage to energy infrastructures

  • Damage to assets

  • Damage to the transport and distribution infrastructure

  • Increase of energy outage duration

Risks and opportunities associated with the energy transition

Our energy infrastructure is a key precondition for the energy transition. Transition-related risks and opportunities mainly concern the increasing electrification and the requisite speed thereof.

Risks and opportunities associated with the energy transition

Potential effects

Through sustainable innovations, Stedin contributes to technologies and systems that combat climate change

  • Electrification of society

  • Vulnerability of components

  • Opportunities for hydrogen

  • Storage of energy

Regulation policy

  • Financing the energy transition

Increasing scarcity of raw materials

  • Major price increases

Accelerating the energy transition

  • Feasibility of sustainability objectives, including those related to circularity, CO2 emission reduction, biodiversity