Climate scenario analysis is a structured method for exploring how an organisation’s assets, operations, or investments might perform under different plausible future climate and policy pathways, such as varying degrees of global warming or rates of decarbonisation. It typically models physical risks, including extreme weather and chronic climate shifts, and transition risks, including policy, technology, and market changes, against defined time horizons. Climate scenario analysis informs climate risk disclosure and materiality assessment frameworks used by regulators and investors to evaluate long-term financial resilience.