Climate-Related Risk Taxonomy
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:
- risks related to the physical impacts of climate change and (Climate Change Physical Risk)
- risks related to the transition to a lower-carbon economy (Climate Change Transition Risk)
