Climate-related physical risk assessment

Case Study

CLIMATE-RELATED PHYSICAL RISK ASSESSMENT

Point Advisory have recently completed a successful climate risk engagement with a large multi-site industrial client. To inform the client’s long-term strategic planning and risk management, the project examined climate-related physical risks across dozens of sites. Our assessment approach was guided by an initial ‘top down’ vulnerability assessment to identify high priority risks. These risks were then subject to a detailed ‘bottom-up’ quantitative examination using site-specific valuation and climate data.  Financial risks associated with wind & storm, extreme rain & flood, extreme heat and bushfire were thereby examined.

In total, over 1,000 individual physical climate risks across were centralised into a single register and the evolution of the aggregated risk profile was mapped out to 2050 for two different climate scenarios. The end result informed a set of recommendations for managing climate-related risk over the long-term planning horizon.

For further information contact Ben Sichlau.