RESOURCE GUIDE
Climate Change Physical Risk Analysis

Emphasizing the importance of the role Central Banks play in mitigating climate change.

Uses data to identify and evaluate water risks around the world.

Focuses on making the case for climate adaptation, providing specific insights and recommendations in key sectors: food security, the natural environment, water, cities and urban areas, infrastructure, disaster risk management, and finance.

Analyzes climate-related physical risk assessment guidance from leading corporate disclosure initiatives and provides information on the disclosure guidance coverage of certain physical risks.

A specialized agency of the United Nations, WMO is dedicated to international cooperation and coordination on the state and behaviour of the Earth’s atmosphere, its interaction with the land and oceans, the weather and climate it produces, and the resulting distribution of water resources.

Provides country profile reports that synthesize the most relevant data and information on climate change, disaster risk reduction, and adaptation actions and policies at the country level.

Explains the impacts heat waves could have on the human body, and providing information on safety measures that allow us to be more resilient and adapt to warmer weather.

Provides a foundational framework within which institutions can conceptualize the role of legal action as a driver or consequence of adaptation, and as a mechanism to reduce barriers to the availability of adaptation finance. It provides a key input for the future development of more holistic climate risk and pricing models.

Provides a summary of the key developments across third party climate risk assessment providers since May 2019, including new and updated scenarios, methodological tools, key guidelines, as well as an overview of the changing regulatory landscape and potential developments into 2021.

A report on physical climate risks and opportunities from Phase II of its Task Force for Climate-related Financial Disclosures (TCFD) Banking Programme with climate risk advisory and analytics firm, Acclimatise. Provides a blueprint to support financial institutions to navigate the changing physical climate risk landscape.

The paper reviews barriers and opportunities for financing resilience and adaptation by all actors across the financial system but chiefly targets financial system constituents, including policymakers and financial actors, and the actions required of each.

This is the third independent assessment of the UK’s climate risks under the Climate Change Act, coordinated by the Climate Change Committee. The report identifies eight risk areas that require the most urgent attention in the next two years, and provide advice for good adaptation planning that should form the basis for the next round of national adaptation plans.

A set of climate disclosure recommendations for disclosing clear, comparable and consistent information about the risks and opportunities presented by climate change.

The Task Force developed this guidance to support preparers in disclosing decision-useful metrics, targets, and transition plan information and linking those disclosures with estimates of financial impacts. Such information will enable users to appropriately assess their investment and lending risks.

In 2021, the TCFD published an annex that updated their disclosure recommendations, which describe climate information investors, lenders, and insurance underwriters need to make economic decisions.

Report discusses the negative impacts on GDP if temperatures continue to rise, and the regions that could be hardest hit.

Swiss Re has created their own proprietary geo risk tool that provides the user with overviews and assessments of natural hazard exposures worldwide.

Bulletin is intended to assist investors and companies in their efforts to more effectively manage and communicate about climate risk. For investors, it presents a comprehensive view of where climate risk is likely to be present across a diversified portfolio and maps that risk to corresponding financial impacts to provide a greater understanding of exposures and value at risk. Second, for companies, the bulletin shares recommendations on how industry-specific climate risk can be more effectively measured, managed, and disclosed, ensuring markets have the information they need to price climate-related risks and opportunities.

Identifies the subset of environmental, social, and governance issues most relevant to financial performance in each of 77 industries. They are designed to help companies disclose financially-material sustainability information to investors.

Identifies sustainability issues that are likely to affect the financial condition or operating performance of companies within an industry.

Provides an overview of physical climate risk awareness among different sectors, and uses a methodology to assess individual company’s physical risks.

Interactive tool that filters Physical climate risk hazards and time frame across the world to give probability of impact on geographic regions.

Publication focuses on physical climate risks and provides investors with basic climate change information, and guidance on managing physical climate risks.

Assesses the threats and needs that multidimensional climate change imposes for public infrastructure, reviews the existing adaptive capacity that could be applied to respond to these threats and needs, and presents options for enhancing adaptive capacity through public sector investments in physical, planning, and human resources.

To help companies and financial organizations improve their understanding of these evolving risks, this dashboard provides a landing place for trusted, curated data and visualizations on physical climate hazards—presented along with an explanation of the climate science and potential financial impacts.

Addresses how the climate crisis will interrupt the way we live and agriculture in the United States. Provides assessment and insights into how climate Physical climate risk hazards will impact different counties in the United States and how these changes may play out.

Utilizes climate research to address physical climate issues using web-based tool and climate model data to monitor and predict weather patterns and extreme weather events in real-time and also allows users to visualize and interact with data at a regional level.

Publication provides examples of effects on value chains for different sectors.

Used to assess climate hazards and environmental risk data that individual locations are exposed to.

Provides broad information on the different physical risks countries may experience.

The NGFS’s publication portal provides reports and materials that help to advance the NGFS’s purpose of strengthening the global response required to meet the goals of the Paris agreement and to enhance the role of the financial system to manage risks and to mobilize capital for green and low-carbon investments in the broader context of environmentally sustainable development. The Network defines and promotes best practices to be implemented within and outside of the NGFS’s global Membership of central banks and financial regulators and conducts or commissions analytical work on green finance.

The NGFS Climate Scenarios bring together a global, harmonised set of transition pathways, physical climate change impacts and economic indicators.

Examines the implications of climate change for central banks’ operational frameworks and for the implementation of monetary policy in practical terms.

Draw on climate model forecasts to showcase how the climate has changed and could continue to change, how a changing climate creates new risks and uncertainties, and what steps can be taken to best manage them.

This study proposes a set of quality criteria for climate related disclosure and analyzes how the world’s 250 largest companies (as defined in the Fortune 500 list 2019) measure up against these criteria.

A case study that looks at reviewing whether certain physical climate risks posed to a toll road operator could be uninsurable.

Provides quantitative projections of the Shared Socioeconomic Pathways (SSPs) and related Integrated Assessment scenarios under different warming projections.

An initial effort to assess the level of Climate adaptation and resilience of each country by comparing the level of climate hazard that the country is facing against its policy preparedness.

The IEA is at the heart of global dialogue on energy, providing authoritative analysis, data, policy recommendations, and real-world solutions to help countries.

Most recent climate report from the IPCC that highlights the physical science basis of climate change by providing information on current state of the climate, including how it is changing and the role of human influence, the state of knowledge about possible climate futures, climate information relevant to regions and sectors, and limiting human-induced climate change

A special report that provides information on the impacts of a 1.5 degree warming above pre-industrial levels and related global greenhouse gas emission pathways, in the context of strengthening the global response to the threat of climate change, sustainable development, and efforts to eradicate poverty.

This report lays the foundations of the impacts of physical risk on key economic sectors and lays out adaptation options, and other relevant literature.

Provides examples of adaptation, vulnerability & exposure reductions, and transformation measures that could be taken to reduce physical climate risk exposure.

Provides guidance to issuers to incorporate climate risk into different financial valuation methods, and includes a case study on the financial impacts physical climate risks had on a electricity power generating and wholesale marketing company.

Provides guidance on how commercial real estate can be resilient to flooding in Canada by providing information on plans & procedures, equipment & supplies, and retorfits that can be implemented.

This publication provides information to investors to help investors understand physical climate risks and how they can identify, assess, and manage physical risks and opportunities.

A guide that establishes investor expectations of investee companies regarding the governance, assessment, management, key metrics, and disclosure of physical climate risks and opportunities. It also provides questions investors can use to support the physical climate-related stewardship of investee companies.

Ranked 67 developed, emerging, and frontier market countries for their vulnerability to climate change risks. Physical impacts, transition to low-carbon economies and the funds to respond to climate change are all key to this analysis.

Impact of climate change on semiconductor manufacturing.

Includes policy and regulatory measures issued by public authorities, including governments, central banks, financial regulators, and public financial institutions.

Database to search and browse climate laws, policies and litigation cases globally.

Provides visualized data information on natural hazards global risks, covering different Physical climate risk hazards such as tropical cyclones and related storm surges, drought, earthquakes, biomass fires, floods, landslides, tsunamis and volcanic eruptions.

Provides a general view of the hazards, for a given location, that should be considered in project design and implementation to promote disaster and Climate adaptation and resilience.

This discussion paper is designed to serve as an initial starting point for broader discussions about metrics and methodologies for identifying and assessing climate change risk at the asset level and about examples of investments in adaptation and resilience. It provides feedback and commentary from an initial set of private investors and other stakeholders on those approaches with the objective of leading to appropriate ways of measuring physical climate risk that can facilitate concrete investment in adaptation and resilience.

Analyzes and ranks to what extent countries and regions have been affected by impacts of climate related extreme weather events.

The Commission has published guidelines on reporting climate-related information, which in practice consist of a new supplement to the existing guidelines on non-financial reporting, which remain applicable. The guidelines on reporting climate-related information integrate the recommendations of the Financial stability board’s taskforce on climate-related financial disclosures (TCFD) and take account of the forthcoming taxonomy on sustainable activities.

Provides guidance on how to disclose physical climate risks and opportunities based of the TCFD recommendations.

Sets out the results of the work to date undertaken by the Technical Expert Group on Sustainable Finance in relation to the development of an EU classification system for environmentally sustainable economic activities.

Provides an objective basis for vulnerability assessment and rational decision-making in disaster situations. For example, it helps identify the disaster types that are most common in a given country and that have had significant historical impacts on human populations.

Provides detailed examples of how some industries can take advantage of certain circular economy initiatives that translate into climate opportunities.

Contains over 200 drought risk tools available worldwide: drought hazard and risk tools, ranging from drought indices and datasets to online platforms, newsletters, and software products.

A database of regulations and other actions by federal agencies that are relevant to climate change mitigation and adaptation. The database includes links to archived versions of proposed and final regulations as well as technical support documents, regulatory impact analyses, agency guidance, and other relevant resources.

Case study assesses 12 real estate portfolios – with a total market value in excess of £2 trillion, spread across Europe, North and South America and Asia

Offers open data, visualizations and analysis to help policymakers, researchers and other stakeholders gather insights on countries’ climate progress.

USAID has developed tools to support climate risk screening and management in strategy, project and activity design. These tools are meant to improve the effectiveness and sustainability of development interventions by helping the user to assess and address climate risk.

The Climate Guidance has been designed to help companies put into place the thinking and processes necessary for high-quality material climate disclosures and allow them and their investors to best navigate the risks and opportunities of climate change.

An interactive map showing areas threatened by sea level rise and coastal flooding. Combining the most advanced global model of coastal elevations with the latest projections for future flood levels.

Tool shows how the severity of climate change impacts will increase over time in continents, countries and provinces at different levels of warming, starting with 1.5°C, the limit in the Paris Agreement. It also allows access to the underlying data.

Agriculture: Maize yield, rice yield, soy yield, wheat yield, soil moisture.
Climate: Air temperature, atmospheric pressure, daily max/min air temperature, downwelling longwave radiation, precipitation, relative humidity, snowfall, specific humidity, wind speed.
Economic Damages: 1-in-100-year expected damage from tropical cyclones, annual expected damage from river floods/tropical cyclones, labour productivity due to heat stress.
Extreme Event: Population/land exposed to crop failures/heatwaves/wildfires, river flood depth.
Fresh Water: Max/min daily river discharge, river discharge, surface runoff.

Scenarios:
NGFS current policies
NGFS delayed 2C
NGFS net-zero 2050
RCP26
RCP45
RCP60
RCP85

Tool shows how the severity of climate change impacts will increase over time in continents, countries and provinces at different levels of warming, starting with 1.5°C, the limit in the Paris Agreement. It also allows access to the underlying data.

Scenarios:
RCP26
RCP45
RCP85

An independent scientific analysis that tracks government climate action and measures it against the globally agreed Paris Agreement aim of “holding warming well below 2°C, and pursuing efforts to limit warming to 1.5°C.

Financial cost of climate hazards from extreme weather events and identification of transparent and precision in risk assessment tools.

An interactive online platform with indicators, maps, case studies, videos, and factsheets on physical climate risks.

Assess the depth of significant short- and long-term threats from water and climate risks arising from both adaptation and mitigation, and discuss how they are embedded in Asian market indices and current asset allocation practices of Asian pension funds.

Explains the different acute and chronic physical risks investors should consider.

Page 3-7, Provides information on physical climate risks, as well as provides a case study that assesses geography of exposure in US residential mortgage-backed securities to physical climate risks.

A map that shows all types of weather disasters, some of which are known to be influenced by climate change (floods, tropical storms) and some for which a climate influence is uncertain (tornadoes) in the United States.

Fact sheet overviews strategies for areas with a projected increase in drought conditions to become more resilient. It concludes with a community case study that has used a number of these strategies, and a list of tools to help communities evaluate the costs and benefits of resilience strategies.

Paper overviews a number of adaptation strategies for areas with a projected increase in wildfire conditions. For each strategy, it will discuss design and operation costs, and primary and co-benefits. The paper includes a community case study of Austin, Texas, which has used a number of these strategies, and a list of publications and interactive tools to help communities become more resilient to wildfire.

Offer some specific examples of different aspects of effective TCFD reporting across the four core TCFD elements of governance, strategy, risk management, and metrics and targets.

CDP runs the global environmental disclosure system. Each year CDP supports thousands of companies, cities, states and regions to measure and manage their risks and opportunities on climate change, water security and deforestation.

On an annual basis, CDP releases the top companies that have scored an ‘A’ on their climate change, forest, and water responses – showcasing the companies that are leaders in the climate change disclosure and management space.

A UK-based website covering the latest developments in climate science, climate policy and energy policy.

CCLN’s mission is to ensure Canadian directors and trustees understand their fiduciary obligations with respect to climate change, and have access to resources to help them govern with confidence in the area of climate-related financial risks and opportunities.

Focus of this review is on the key theoretical and empirical modelling issues in the analysis of the macroeconomic risks deriving from climate change.

Framework designed to assess the impact of physical climate change risk for in the insurance sector.

Examine the intersection between severe weather events and household financial vulnerabilities.

Offers a five-step framework that enables investment and valuation communities to apply climate change risks and opportunities consistently to valuations and decision making.

The report is the result of a collaboration of sixteen of the world’s leading banks coordinated by the UN Environment Finance Initiative (UNEP FI) Secretariat to advance recommendations published by the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD). Through this collaboration, banks set out to develop and test a widely applicable scenario-based approach for estimating the impact physical climate change on their corporate lending portfolios.