SEC Propsed Climate-Related Disclosure Rules
Regulation S-K
Item 1500 Definitions

Scenario analysis

(o) Scenario analysis means a process for identifying and assessing a potential range of outcomes of various possible future climate scenarios, and how climate-related risks may impact a registrant’s operations, business strategy, and consolidated financial statements over time. For example, registrants might use scenario analysis to test the resilience of their strategies under certain future climate scenarios, such as those that assume global temperature increases of 3 degrees celcius, 2 degrees celcius, and 1.5 degrees celcius above pre-industrial levels.

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