Climate-Related Risk Taxonomy

From Open Risk Manual

Definition

A Climate-Related Risk Taxonomy is a Risk Taxonomy that focuses on identifying and defining risk categories associated with climate / environmental factors (Also climate-related hazards). This entry aims to summarize and integrate any formally proposed and published taxonomies

EU Sustainable Finance Taxonomy

For the purposes of the EU Sustainable Finance Taxonomy the TEG has developed a classification of climate-related hazards[1]. This climate-related hazard classification comprises four major hazard groups, with hazards related to

  • water
  • temperature
  • wind, and
  • mass-movements.


All groups include acute (extreme) and chronic (slow-onset) hazards, as adaptation must account for both rapid as well as gradual changes in the weather and climate to take the appropriate adaptation measures and avoid maladaptation

Temperature-related Wind-related Water-related Solid mass-related
Changing temperature (air, freshwater, marine water) Changing wind patterns Changing precipitation patterns and types (rain, hail, snow/ice) Coastal erosion
Heat stress Precipitation and/or hydrological variability Soil degradation
Temperature

variability

Ocean Acidification Soil erosion
Permafrost thawing Saline intrusion Solifluction
Sea level rise
Water stress
Heat wave Cyclone, hurricane, typhoon Drought Avalanche
Cold wave/frost Storm (including blizzards, dust and sandstorms) Heavy precipitation (rain, hail, snow/ice) Landslide
Wildfire Tornado Flood (coastal, fluvial, pluvial, ground water) Subsidence
Glacial lake outburst

TCFD Taxonomy

The TCFD Report[2] divided climate-related risks into two major categories:

See Also

References

  1. Technical Expert Group on Sustainable Finance Taxonomy, Technical Report, June 2019
  2. TCFD Report, Recommendations of the Task Force on Climate-related Financial Disclosures, 2017