Session 2 - Climate physical risks

Question 1

a.) When talking about climate events, what is the different between a trend and a hazard?

b.) What are the parameters to qualify the latter?

Answer 1

a.) Trend = Refers to a long-term pattern or change in climate data over time

Hazard = A specific climate-related event or condition that poses a risk to people, property, or the environment

b.) Parameters for hazard;
Scale, Frequency, Location, Duration etc

Question 2

What are the main components of a climate physical risk?

Answer 2

Main components of a climate physical risk;
Hazard (Fara) - The chance of a trend or event happening that could have harmful effects, including how likely it is and how severe it could be

Vulnerability (Sårbarhet) - The likelihood of a system facing harm from exposure to a hazard

Exposition (Utläggning) - The system’s location where it could be harmed by a climate hazard

Question 3

How can we act on it?

Answer 3

What to do?
Mitigation (lindring) - Limits climate change risk and its related effects. You can have global mitigation (GHG emissions reduction) and local ones for a given risk

Adaptation (anpassning) - Adjusts to live with the effects of a climate change risk

Resilience (Elasticitet) - Climate-proofed systems (economic, technical and social) are designed to prevent and respond to extreme events

Question 4

What are the main consequences, from physical risks, you can expect on your value chain?

Answer 4

Physical risks to the value chain include supply disruptions, resource scarcity, higher costs, and reputational damage from climate change