Climate-related physical risk

Physical risks can be acute, such as severe floods or storms, or chronic, such as sustained changes in temperature or water availability. Assess how the exposure could affect the entity’s operations, supply chain, assets and financial prospects over relevant time horizons. IFRS S2 addresses material climate-related disclosures, including resilience analysis using an approach appropriate to the entity’s circumstances. Physical risk differs from transition risk arising from shifts in policy, technology, markets or reputation.