Climate-Related Risk refers to the potential negative impacts of Climate Change on an organization. In Risk Management context climate-related risks form a collection of fundamental risk factors or underlying causes which are expressed (realised) as more specific risks
Climate-related risks exist in any case and must be managed irrespectively of the causes of climate change. In connection with human induced climate change they form (over the longer term) a more complex system
- risks related to the transition to a lower-carbon economy and
- risks related to the physical impacts of climate change.
- TCFD Report, Recommendations of the Task Force on Climate-related Financial Disclosures, 2017