How to Manage Climate Risk

WHAT YOU CAN DO: THE STEPS TO MANAGE PHYSICAL CLIMATE RISK

The following guide is a companion to help you better identify and mitigate physical climate risks.

• Conduct regular reviews to keep pace with changing physical and financial risk and changing climate modelling • Timing guided by activity and portfolio changes

• Baseline physical climate risks using data analytics tool • Understand threats, changes, costs and impact on value over time across a range of climate scenarios

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• Model impact of physical risk on assets, liabilities, revenues and expenses • Engage finance team with all involved parties/teams to build collaboration

• Integrate climate risk management into everyday processes • Develop an enterprise approach to accountability