Climate risk assessment is a systematic process that helps organizations understand, quantify, and prepare for the potential impacts of climate change on various aspects of business, from financial stability to environmental sustainability.
The task involves identifying various climate-related risks, including physical risks (e.g., extreme weather events, sea-level rise), transitional risks (e.g., policy changes, technological advancements), and liability risks (e.g., legal and financial consequences of climate-related actions).
Next steps include collection and analysis of climate data, historical weather patterns and future projections to assess the severity and likelihood of different climate risks.
Followed by vulnerability assessment and scenario analysis, the Climate Risk assessment helps businesses quantify potential impacts and develop mitigation / adaptation strategies thereby enhancing resilience in a changing climate.
SustainoMetric helps clients set-up working models for climate risk assessments while gathering climate data from various sources to enhance preparedness.