I found this paper on physical climate risk assessment published in Nature Communications very interesting and I assume also my network of climate and sustainability experts as well as risk experts might be interested.

https://www.nature.com/articles/s41467-024-48820-1

Researchers use acute physical climate risks in Mexico as a case study and show how easily physical climate risk of portfolios can be underestimated when using climate risk scores. There is a need for more precise analysis of firms’ different locations and business lines. Sectoral or geographical climate scores are not necessarily enough.

There will always be some limitations and uncertainties in assessing climate risks on a business or financial asset level, but it is still important to develop assessment methodologies. They are needed for the design of policies and financial instruments aimed at building resilience to climate change and filling the adaptation gap. As the researchers say in an interview, we may be seriously underestimating the financial resources needed for climate adaptation.

https://www.news.uzh.ch/en/articles/media/2024/Climate-Risk-Assessment-Methods.html

#climate #adaptation #risk #physicalrisk #acute #chronical #methodologies #financing