Climate Risk

Climate risk encompasses the potential negative impacts of climate change on an organisation, categorised as physical risks (acute events like floods, storms; chronic shifts like sea-level rise, temperature increase) and transition risks (policy changes, technology shifts, market dynamics, reputational factors from the shift to a low-carbon economy). Climate risk assessment using scenario analysis (e.g., IEA NZE, NGFS, IPCC RCP/SSP pathways) is required under TCFD, ISSB, and CSRD frameworks.