Difference between revisions of "Climate Change Physical Risk"
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== Definition == | == Definition == | ||
| − | '''Climate Change Physical | + | '''Climate Change Physical Risk''' is any [[Physical Risk]] that is induced by [[Climate Change]]. |
| + | |||
| + | Such risks may have financial implications for organizations, such as direct damage to assets and indirect impacts from supply chain disruption. An organizations’ financial performance may also be affected by changes in: | ||
* water availability, sourcing, and quality; | * water availability, sourcing, and quality; | ||
* food security; and | * food security; and | ||
| Line 17: | Line 19: | ||
Chronic physical risks refer to longer-term shifts in climate patterns (e.g., sustained higher temperatures) that may cause sea level rise or chronic heat waves. | Chronic physical risks refer to longer-term shifts in climate patterns (e.g., sustained higher temperatures) that may cause sea level rise or chronic heat waves. | ||
| − | [[Category: | + | == See Also == |
| + | * [[Climate Change Transition Risk]] | ||
| + | |||
| + | [[Category:ESG Risk Management]] | ||
| + | [[Category:Disaster Risk]] | ||
Latest revision as of 13:58, 11 September 2023
Definition
Climate Change Physical Risk is any Physical Risk that is induced by Climate Change.
Such risks may have financial implications for organizations, such as direct damage to assets and indirect impacts from supply chain disruption. An organizations’ financial performance may also be affected by changes in:
- water availability, sourcing, and quality;
- food security; and
- extreme temperature changes affecting organizations’ premises, operations, supply chain, transport needs, and employee safety.
Physical risks emanating from climate change can be event-driven (acute) such as increased severity of extreme weather events (e.g., cyclones, droughts, floods, and fires). They can also relate to longer-term shifts (chronic) in precipitation and temperature and increased variability in weather patterns (e.g., sea level rise).
Acute Physical Risks
Acute physical risks refer to those that are event-driven, including increased severity of extreme weather events, such as
- cyclones, hurricanes, or floods
- droughts
- fires
Chronic Physical Risk
Chronic physical risks refer to longer-term shifts in climate patterns (e.g., sustained higher temperatures) that may cause sea level rise or chronic heat waves.
