Quote from
sachinm on 11 November 2023, 4:15 pm
Climate-related risks can be divided into two major categories:
- risks related to the transition to a lower-carbon economy, and
- risks related to the physical impacts of climate change.
Transition Risks relate to transitioning to a lower-carbon economy may entail extensive policy, legal, technology, and market changes to address mitigation and adaptation requirements related to climate change.
Physical risks resulting from climate change can be event driven (acute) or longer-term shifts (chronic) in climate patterns. Physical risks may have financial implications for organisations, such as direct damage to assets and indirect impacts from supply chain disruption.
Climate-related risks can be divided into two major categories:
- risks related to the transition to a lower-carbon economy, and
- risks related to the physical impacts of climate change.
Transition Risks relate to transitioning to a lower-carbon economy may entail extensive policy, legal, technology, and market changes to address mitigation and adaptation requirements related to climate change.
Physical risks resulting from climate change can be event driven (acute) or longer-term shifts (chronic) in climate patterns. Physical risks may have financial implications for organisations, such as direct damage to assets and indirect impacts from supply chain disruption.
