📌 Investors, are you prepared for the multi-hazard risks posed by physical climate risks?
 
As the 🌍 impacts of climate change continue to manifest themselves in #extremeweatherevents, such as:
🍂#drought
💧#floods
☀️#heatwaves
🔥#forestfires, and more,
it’s becoming increasingly clear that the investment sector must take these risks seriously.
 
Multi-hazard risks, which arise from the combination of multiple climate hazards, can have significant impacts on
💰the financial performance of companies and
📈 investment portfolios.
 
These risks include not just the physical damage caused by 🌀 extreme weather events, but also the knock-on effects on
🏭 #supplychains,
🚚 #transportationsystems, and
🚧 #criticalinfrastructure.
 
A report by the World Economic Forum found that the number of people exposed to multiple climate hazards could increase by up to 50% by 2030. According to a report by the Global Risk Institute, physical climate risks could result in losses of up to $24 trillion in global assets by 2100. Additionally, a study by the Asset Owners Disclosure Project found that over half of the world’s 500 largest asset managers are failing to adequately address physical climate risks in their investment decision-making processes.
 
To address these risks, investors need to take a proactive approach to climate risk management. This means incorporating physical climate risks and multi-hazard risks into investment decision-making processes, assessing the resilience of companies and assets to these risks, and engaging with companies to encourage them to improve their climate resilience.
 
🌱 It’s time for the investment sector to step up and address the challenges posed by physical climate risks and multi-hazard risks. By doing so, we can help build a more sustainable and resilient future for all.