Physical climate-related risks

Physical climate-related risks refer to the potential adverse impacts that arise from climate change on natural and human systems. These risks result from changes in temperature, precipitation patterns, sea-level rise, extreme weather events, and other climate-related phenomena. They can have significant implications for various sectors, including agriculture, infrastructure, health, water resources, and ecosystems.

Key Matters and Considerations in ESG

Here are some key aspects of physical climate-related risks:

– Extreme Weather Events: Climate change increases the frequency and intensity of extreme weather events such as hurricanes, floods, droughts, heatwaves, and wildfires. These events can cause direct damage to infrastructure, disrupt supply chains, affect agricultural productivity, and pose risks to human safety and well-being.

– Changing Climate Patterns: Climate change alters long-term climate patterns, leading to shifts in rainfall patterns, temperature regimes, and growing seasons. These changes can impact agricultural yields, water availability, and ecosystems, affecting food production, water resources, and biodiversity.

– Sea-Level Rise: Rising sea levels, primarily driven by the melting of glaciers and ice caps, pose risks to coastal communities and infrastructure. Increased coastal erosion, saltwater intrusion into freshwater sources, and the potential for more frequent and severe coastal flooding can have profound consequences for human settlements, industries, and ecosystems located in coastal areas.

– Health Impacts: Climate change can have adverse effects on human health, including increased heat-related illnesses, spread of infectious diseases, poor air quality, and mental health challenges arising from natural disasters. These health risks can strain healthcare systems, increase mortality rates, and impact the productivity and well-being of populations.

– Ecosystem Disruption: Climate change can disrupt ecosystems by altering habitats, species distributions, and ecological processes. This can lead to the loss of biodiversity, ecosystem degradation, and reduced ecosystem services, such as pollination, water purification, and carbon sequestration, with cascading effects on food security, water resources, and livelihoods.

Addressing physical climate-related risks requires a multi-faceted approach that includes mitigation efforts to reduce greenhouse gas emissions and adaptation measures to enhance resilience and preparedness. It involves implementing strategies to protect infrastructure, diversify agriculture, promote sustainable water management, improve early warning systems, and support community resilience-building initiatives.

Understanding and managing physical climate-related risks is crucial for governments, businesses, and communities to make informed decisions, allocate resources effectively, and develop strategies that promote sustainable development and mitigate the impacts of climate change.

About GreenCo ESG Consulting

GreenCo is a professional ESG advisory firm accredited with ISO 9001 in ESG Reporting and Climate Policy Advisory Services. Established in 2016, we were born to tackle ESG and climate risk management challenges. GreenCo has a professional team consists of talents with multiple backgrounds with

  • PhD
  • Practitioner Member of the Institute of Environmental Management and Assessment (IEMA)
  • CFA (the CFA Institute) and Certificate in ESG Investing
  • EFFAS Certified ESG Analyst (CESGA)
  • Completion of Certified GRI Training Programme
  • Certified Public Accountant (for assurance in accordance with ISAE 3000)
  • Member of Global Association of Risk Professionals
  • Master’s degree in envirnomental science

GreenCo has solid track record in ESG advisory for over 70 listed companies in Hong Kong, Mainland China, Singapore and Korea, covering all industries under the Hang Seng Industry Classification System.

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