Climate-Related Risk

From Open Risk Manual

Definition

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

Taxonomy

The TCDF Report[1] classified climate-related risks via a Climate-Related Risk Taxonomy

  • risks related to the transition to a lower-carbon economy and
  • risks related to the physical impacts of climate change.


References

  1. TCFD Report, Recommendations of the Task Force on Climate-related Financial Disclosures, 2017

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