The World Economic Forum’s 2022 Global Risks Report places ‘climate action failure’ as the most severe threat to the world over the next ten years. In addition to the escalating public health and ecosystem impacts, climate change presents significant financial risk to the global economy. Across the board, governments, businesses and financial markets need clear, comprehensive, high-quality information on the effects of climate change to provide decision support for implementing mitigation and resilience strategies.
Expectations from stakeholders and investors to disclose climate-related financial risks means organisations not only need to assess their impact on the climate, but also the impact of the climate on their assets, under various future climate scenarios. Failure to effectively assess, mitigate and adapt to climate-related risks can have reputational and financial consequences. This includes understanding the physical risks and impacts presented...