Climate risk, scenarios & resilience · Core

Physical climate risk

Also called: physical risk

ELI5

Risk from acute or chronic physical effects of climate change.

Used in conversation

“The board will ask what happens if physical climate risk moves outside tolerance.”

Pitch context

You will see “Physical climate risk” in sustainability reports, impact decks, climate plans and assurance materials when the discussion reaches climate risk, scenarios & resilience.

Why it matters: In climate risk, scenarios & resilience, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

Sources & evidence · 3

Direct term-level sources and supporting source families.