Climate change is already affecting many weather and climate extremes across the globe. We recognise the need to understand and manage climate impacts and continue to integrate climate risk considerations into our decision-making.
We work with specialist external partners to analyse the physical and transitional risks of climate change, using it to inform our strategy regarding our assets and liabilities.
Enhancing our understanding also involves using subject matter experts and updating our risk view as climate modelling evolves as a science.
Scenario analysis
In our recognition of the importance of understanding and managing climate impacts, we have undertaken stress and scenario analysis in conjunction with specialist external partners to help better understand the impacts of climate change on our assets and liabilities over an extended time horizon.
The scenario analysis undertaken has involved considering various climate pathways based on a different range of global mean temperature increases over the 21st century, resulting in a varying degree of physical and transition risk.
We acknowledge that climate modelling is in its relative infancy and is a rapidly developing science. As such, we look to update our risk view as climate models evolve and more data becomes available.