Observed impact examples

There are observed impacts for almost all physical climate risks today, in particular for heat stress, drought or flooding, extreme weather and sea level change. Below we present six examples that were recently covered in international media. Some are the combined impact of multiple risks.

Financial impacts go beyond physical infrastructure damage and also disrupt worker time or commutes and changes in demand. Supply chains can be particularly vulnerable depending on the region. Via supply chains and multinational companies, sectoral impacts become global in nature, making it insufficient to study a sector in isolation.

Companies that are early movers in adapting to climate change or developing and/or incorporating low-carbon technologies, can benefit. In contrast, those that do not move, risk rising insurance costs and other uncovered costs, and possibly stranded assets.