Climate scenario analysis evaluates organizational resilience across multiple plausible futures, typically using IPCC or NGFS scenarios ranging from orderly transition (1.5°C) to hot house world (3°C+). Organizations assess physical risks (extreme weather, sea level rise) and transition risks (carbon pricing, technology shifts, market changes) under each scenario. The TCFD framework recommends analyzing at least two temperature pathways. An oil company modeled revenue, asset values, and costs under four scenarios through 2050, revealing $18 billion in stranded asset risk under aggressive decarbonization scenarios, prompting portfolio diversification.