Climate risk

Financial and operational risks faced by companies due to climate change — both physical and transitional.

Climate risk covers physical risks (e.g. extreme weather, sea-level rise, heatwaves) and transition risks (e.g. carbon pricing, technology shifts, market changes, reputation).

ESRS E1 requires scenario analysis and quantified disclosures on these risks. Frameworks such as TCFD and ISSB S2 provide the methodological foundation.

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