The number of organisations developing climate risk mitigation playbooks in response to potential climate disasters has increased markedly. Climate catastrophe costs continue to rise globally, resulting in economic losses from insured losses and uninsured losses (often referred to as the protection gap).
For example, organisations need to prepare to manage severe physical climate disasters such as floods, wildfires and drought, to name a few. Understanding how climate risks affect an organisation helps it prepare to navigate them with minimal disruptions. Key steps in a climate risk assessment include the scoping of climate risk for the organisation, which involves identifying the organisation's significant assets and evaluating the related climate risk exposures linked to each asset. Through this scoping process, organisations can map asset locations and begin building the foundation for their climate risk assessment. It also enables organisations to extend coverage across their value chain and build a detailed asset inventory.
