Physical Risk
The physical, locational and integrated systems risks associated with the impact of climate change on real assets and investments. It can be event driven (acute; e.g. natural hazards, cyclones, hurricanes, or floods), or longer-term shifts in climate patterns (chronic; e.g. sea level rise or chronic heat waves). Physical risks may have financial implications for organisations, such as direct damage to assets and indirect impacts due to extreme temperature changes (e.g. increased demand of heating and/or cooling). (In line with TCFD Definition)