Climate Change Physical Risk Assessment

In 2025, Climate Resilience was engaged by a UK based investment company to provide a Climate Change Physical Risk Assessment (CCPRA). The proposed asset site is in Finland and the report was required for climate disclosure purposes.

The assessment used European Union sustainable finance taxonomy to identify acute and chronic hazards based on Do No Social Harm (DNSH) guidance, and considered CMIP 6 (Coupled Model Intercomparison Project) climate projection data, supplemented with local information where available. The project baseline comparison included observed climate change using the Koppen Climate classification (see below). The site and asset were assessed for exposure and sensitivity against two of the Shared Socioeconomic Pathways (SSP2 and SSP5) identified by the Intergovernmental Panel on Climate Change (IPCC) sixth report . These SSP scenarios align with Representative Concentration Pathways (RCP) 4.5 and 8.5 respectively.

The Climate Resilience methodology is based on ISO14091 and included a vulnerability assessment, asset adaptive capacity, adaptive measures, recommendations for more in depth studies, and financial and supply chain impacts.

Climate Resilience was able to add value though consideration of local topographical and geological information that mitigated the exposure to some acute and chronic hazards. For example: in parts of Finland, the land is rising faster than the sea level, an important consideration for climate impacts.

CCPRA are a key document for enterprises exposed to natural hazards and allow integration of climate change scenarios with business continuity, orgnisational strategy, risk frameworks, and financial planning.

As an Australian based company, Climate Resilience provided the report without VAT leading to a significant saving for the client over locally based entities. Connect@climres.com.au for further information.