42 Inizio Sustainability Report 2023 TCFD report continued identification, assessment, and • Medium-term: Between 2 and 8 With the use of these time horizons, Through the guidance of third-party Our transition impacts relate to the the agencies within this division, as management systems. This years into the future. We see more we identified and assessed how consultants, and engagement with anticipated impact by the Net Zero Engage XD, has started to measure integration is enabling us to strategic and financial planning to be various climate-related risks and relevant internal stakeholders, movement within the healthcare the carbon footprint of live events understand how climate-related achieved over this timeframe. opportunities could unfold in the we short-listed our most material services industry, driven by customer and exhibitions that it organizes issues impact our business and Long-term: From years 8 to 17 future and impact our business physical and transition risks and expectations for their suppliers to for clients by using the TRACE tool. financial position, as well as how • . operations and strategy with regard opportunities to assess under transition to Net Zero as quickly The aim of this tool is to enable best to shape our strategy to This reflects our long-term vision to impacts on our revenue and different climate scenarios which as possible. Additionally, we have Engage XD to provide data-driven mitigate risks and capitalize for Net Zero by 2040. operational and capital expenditure. are outlined in Table 1. We selected identified the medium- to longer- recommendations to its clients on opportunities. scenarios developed by the IPCC term impacts of enhanced reporting when planning for live events. because they comprise more specific requirements as climate regulation Processes used to determine which Table 1: description of the physical and transition scenarios climate modelling for physical climate heightens across jurisdictions we Scope 3 emissions comprise over risks and opportunities could have used in scenario analysis risk. We intend to refresh our scenario operate in. 70% of our emissions globally and a material financial impact on Physical scenarios used Transition scenariosUsed in 2022 analysis exercise at least every it is therefore a focal point of our the organization, including time three years. Impacts of climate-related risks decarbonization strategy for us to horizons and scenarios IPCC SSP5-8.5 – This is a business-as-Stated Policies This scenario is most and opportunities on our business reach Net Zero by 2040. In order to Our climate-related scenario analysis 4.4°C mean usual, high-emission Scenario (STEPS) aligned with current Our short-, medium- and long- model and strategy actively engage our supply chain, warming by 2100 scenario with no policy and economy- consisted of a physical and transition additional climate policy. wide progress. It term climate-related risks The identification of our climate- we are in the process of reviewing risk and opportunity screening Energy demand triples does not assume and opportunities related risks and opportunities has our supplier lifecycle framework to by 2100, dominated by that aspirational assessment. We assessed the risks fossil fuels. Current CO2 targets are met We took part in several interactive helped to further inform our business incorporate environmental criteria across all our global operations, broken levels double by 2050, unless they are sessions and held series of workshops model and strategy considerations. as part of the selection process for down by regions and municipalities. and thereare many backed by detail with internal stakeholders and We understand that taking steps to new suppliers and to assess current challenges to mitigation, on how they will with few challenges be achieved. third-party consultants to engage transition our business to a low- emissions profile of existing suppliers. We consider the following time to adaptation. with and finalize our most materially carbon economy is necessary to horizons to be relevant to our IPCC SSP1-2.6 – This scenario is Net Zero Emissions by This is an ambitious relevant physical and transition risks meet the expectations of our clients The resilience of our strategy business and the fast-paced 1.8°C mean aligned to the current2050 scenario (NZE) scenario that limits and opportunitiefor the business and employees. Wehave therefore to climate-related risks warming by 2100 commitments under global warming s . environment we operate in: the Paris Agreement. to 1.5°C through Scenario analysis was then applied set near-term science-based targets and opportunities It is implied that the stringent climate across five physical and 12 transition and committed to reaching Net Zero In interpreting our scenario analysis Short-term: Within thenext 2 world reaches Net Zero policies and outcomes and what they mean for • emissions in the second innovation, risks and opportunities. by 2040. The decision to set an years. This is the timeframe we half of the century. reaching Net Zero ambitious Net Zero target was our business, strategy, and financial see as critical and highly reflective CO₂ emissions Our physical climate-related risks strongly endorsed by our Executive position, we view Inizio to be at a low around 2050. of the rapidly changing industry involve the medium- to long-term Council and Board of Directors. exposure to climate-related risks and we operate in. Time horizons 2030 and 2050 2030, 2040 and 2050 impacts of extreme weather and their impacts at the present time. its ability to delay and disrupt our An example of how we have adapted This is because many of the identified direct operations and downstream our services to take account of a climate-related risks and opportunities supply chain in delivering services climate-related opportunity is within are not likely, in the near to medium to our clients. the Inizio Engage division. One of term, to be material in terms of the