{"id":3,"date":"2021-04-06T02:59:19","date_gmt":"2021-04-06T06:59:19","guid":{"rendered":"https:\/\/pressbooks.bccampus.ca\/financialimpactclimatechange\/2021\/04\/06\/main-body\/"},"modified":"2021-07-05T00:39:04","modified_gmt":"2021-07-05T04:39:04","slug":"module-1","status":"publish","type":"part","link":"https:\/\/pressbooks.bccampus.ca\/financialimpactclimatechange\/part\/module-1\/","title":{"raw":"Module 1: Physical Risks","rendered":"Module 1: Physical Risks"},"content":{"raw":"

Module Overview<\/h3>\r\nPhysical risks arise when climate-related hazards (extreme weather events, wildfire, sea-level rise, etc.) interact with vulnerable human and natural systems. When those risks materialize, they can have a range of financial impacts on an organization, including (for example): direct costs for restoration and repair, lost sales revenues, declining consumer demand, and increased financing and insurance costs.\r\n\r\nIn this module, we\u2019ll use case study examples to explore physical risks of climate change for private and public organizations in the face of a range of potential climate hazards. We\u2019ll explore both direct physical risks (i.e., those related to an organization\u2019s own vulnerabilities) and indirect risks (i.e., those that materialize elsewhere in an organization\u2019s value chain, such as with its suppliers, transportation infrastructure, consumers, etc.)\r\n
\r\n

Module Objectives<\/p>\r\n\r\n<\/header>\r\n

\r\n\r\nBy the end of this module, you will:\r\n
    \r\n \t
  1. Identify direct and indirect physical impact pathways that link climate with private and public value chains;<\/li>\r\n \t
  2. Understand \"risk\" as the dynamic interplay between hazards, exposure, vulnerability, damage and loss;<\/li>\r\n \t
  3. Interpret basic climate data and forecasts to formulate conclusions regarding risk levels and projections.<\/li>\r\n<\/ol>\r\n<\/div>\r\n<\/div>\r\n \r\n
    \r\n

    Readings & Resources<\/p>\r\n\r\n<\/header>\r\n

    \r\n
    \r\n
    \r\n\r\nA primer for investors and lenders on insurers\u2019 natural catastrophe models for extreme weather perils. In Cambridge Institute for Sustainability Leadership (CISL). (2019).\u00a0Physical risk framework: Understanding the impacts of climate change on real estate lending and investment portfolios<\/a><\/i>.\r\n\r\nTask Force on Climate-related Financial Disclosures. (n.d.)\u00a0Examples of climate-related risks and opportunities and potential financial impacts.<\/a><\/i>\r\n\r\nThe Expert Panel on Climate Change Risks and Adaptation Potential. (2019).\u00a0Canada\u2019s top climate change risks.<\/a>\u00a0<\/i>Council of Canadian Academies. [Chapter 2, pp. 8 \u2013 26].\r\n\r\nWoetzel, J., Pinner, D., Samandari, H., Engel, H., Krishnan, M., Boland, B., & Powis, C. (2020).\u00a0Climate risk and response: Physical hazards and socioeconomic impacts<\/a><\/i>. McKinsey Global Institute.\u00a0[Excerpts only].<\/b>\r\n\r\n \r\n\r\nData sources<\/i><\/b>\r\n\r\nWorld Bank Group. (2021). Climate Change Knowledge Portal (Canada). https:\/\/climateknowledgeportal.worldbank.org\/country\/canada\/climate-data-projections<\/a>\r\n\r\n \r\n\r\nReference resources<\/i><\/b>\r\n\r\nEM-DAT Glossary<\/i>. (n.d.). Centre for Research on the Epidemiology of Disasters.\u00a0https:\/\/www.emdat.be\/Glossary<\/a>\r\n\r\nGeneral classification.\u00a0<\/i>(n.d.). Centre for Research on the Epidemiology of Disasters.\u00a0https:\/\/www.emdat.be\/classification<\/a><\/span>\r\n\r\nWorld Bank Group. (2018). Glossary of terms and definitions<\/i>. Climate Change Knowledge Portal.\u00a0https:\/\/climateknowledgeportal.worldbank.org\/themes\/custom\/wb_cckp\/resources\/data\/CCKP_Glossary_Oct_2018.pdf<\/span><\/a>\r\n\r\n \r\n\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>","rendered":"

    Module Overview<\/h3>\n

    Physical risks arise when climate-related hazards (extreme weather events, wildfire, sea-level rise, etc.) interact with vulnerable human and natural systems. When those risks materialize, they can have a range of financial impacts on an organization, including (for example): direct costs for restoration and repair, lost sales revenues, declining consumer demand, and increased financing and insurance costs.<\/p>\n

    In this module, we\u2019ll use case study examples to explore physical risks of climate change for private and public organizations in the face of a range of potential climate hazards. We\u2019ll explore both direct physical risks (i.e., those related to an organization\u2019s own vulnerabilities) and indirect risks (i.e., those that materialize elsewhere in an organization\u2019s value chain, such as with its suppliers, transportation infrastructure, consumers, etc.)<\/p>\n

    \n
    \n

    Module Objectives<\/p>\n<\/header>\n

    \n

    By the end of this module, you will:<\/p>\n

      \n
    1. Identify direct and indirect physical impact pathways that link climate with private and public value chains;<\/li>\n
    2. Understand “risk” as the dynamic interplay between hazards, exposure, vulnerability, damage and loss;<\/li>\n
    3. Interpret basic climate data and forecasts to formulate conclusions regarding risk levels and projections.<\/li>\n<\/ol>\n<\/div>\n<\/div>\n

       <\/p>\n

      \n
      \n

      Readings & Resources<\/p>\n<\/header>\n

      \n
      \n
      \n

      A primer for investors and lenders on insurers\u2019 natural catastrophe models for extreme weather perils. In Cambridge Institute for Sustainability Leadership (CISL). (2019).\u00a0Physical risk framework: Understanding the impacts of climate change on real estate lending and investment portfolios<\/a><\/i>.<\/p>\n

      Task Force on Climate-related Financial Disclosures. (n.d.)\u00a0Examples of climate-related risks and opportunities and potential financial impacts.<\/a><\/i><\/p>\n

      The Expert Panel on Climate Change Risks and Adaptation Potential. (2019).\u00a0Canada\u2019s top climate change risks.<\/a>\u00a0<\/i>Council of Canadian Academies. [Chapter 2, pp. 8 \u2013 26].<\/p>\n

      Woetzel, J., Pinner, D., Samandari, H., Engel, H., Krishnan, M., Boland, B., & Powis, C. (2020).\u00a0Climate risk and response: Physical hazards and socioeconomic impacts<\/a><\/i>. McKinsey Global Institute.\u00a0[Excerpts only].<\/b><\/p>\n

       <\/p>\n

      Data sources<\/i><\/b><\/p>\n

      World Bank Group. (2021). Climate Change Knowledge Portal (Canada). https:\/\/climateknowledgeportal.worldbank.org\/country\/canada\/climate-data-projections<\/a><\/p>\n

       <\/p>\n

      Reference resources<\/i><\/b><\/p>\n

      EM-DAT Glossary<\/i>. (n.d.). Centre for Research on the Epidemiology of Disasters.\u00a0https:\/\/www.emdat.be\/Glossary<\/a><\/p>\n

      General classification.\u00a0<\/i>(n.d.). Centre for Research on the Epidemiology of Disasters.\u00a0https:\/\/www.emdat.be\/classification<\/a><\/span><\/p>\n

      World Bank Group. (2018). Glossary of terms and definitions<\/i>. Climate Change Knowledge Portal.\u00a0https:\/\/climateknowledgeportal.worldbank.org\/themes\/custom\/wb_cckp\/resources\/data\/CCKP_Glossary_Oct_2018.pdf<\/span><\/a><\/p>\n

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