Distinguish physical climate risks from transition risks and assign them to appropriate business owners.
The move: split the climate conversation before you prioritize it. Physical Risk Physical risk is about climate conditions changing the reliability, safety, cost, or availability of assets and operations. It includes acute events like floods and wildfires, and chronic shifts like rising heat, water stress, and sea-level rise. The practical questions are: where are we exposed, how severe could the consequence be, what controls exist, and when would we act? Transition Risk Transition risk is about the economic and policy shift toward lower emissions. It includes regulation, carbon pricing, customer requirements, technology substitution, financing terms, litigation, and reputation. The practical…
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