The first step of the CRAF is to define your scope and objectives. You need to decide what aspects of your business you want to assess, such as your products, services, markets, operations, or supply chain. You also need to define your time horizon, geographic scope, and key stakeholders.
The second step is to identify your climate hazards and drivers. You need to gather data and information on the current and projected climate change scenarios and impacts for your scope. You also need to identify the drivers of transition risk, such as policy, legal, technological, market, or social changes that affect your business.
The third step is to assess your exposure, sensitivity, and adaptive capacity. You need to analyze how your business is exposed to the climate hazards and drivers, and how sensitive it is to their effects. You also need to evaluate your ability to cope with, adapt to, or benefit from the climate change impacts.
The fourth step is to evaluate your climate risk and opportunity profile. You need to estimate the magnitude, likelihood, and timing of the potential impacts and responses for your business. You also need to prioritize your climate risks and opportunities based on their significance, urgency, and feasibility.