WTN's physical climate risk assessment reports include visually intuitive heatmaps. In the standard setup, this analysis covers 11 individual climate hazards across 4 time horizons. These heatmaps illustrate exposure to climate-related extremes.

 

A meaningful climate risk assessment begins with understanding exposure. The risk score metric is designed to support this first and foundational step.

 

In the initial phase of the analysis, we seek to answer three essential questions:

 

- What types of perils have historically affected this area?  What do we already know from the past data?

- How are these hazards projected to evolve over the next 5, 15, and 25 years? Anything to be aware of?

- Which hazards require immediate attention and may demand additional risk management actions?

Figure 3: Asset-level climate risk assessment by hazard type and with forward-looking scenario analysis. Three plots show three scenarios, so called "orderly, "disorderly", and "hot-house world": with low, moderate and high trend in greenhouse gas (GHG) emissions. 

 

The time periods include: "present day" reference (based on all available historical data), 2025-2030, 2031-2040, and 2041-2050.

 

It’s important to note that the impact of climate hazards, whether through direct physical damage or operational disruption, depends not only on the hazards themselves but also on non-climatic factors such as building design, type of economic activity (cattle/agrifood, data servers, power), power and water infrastructure and many other economic factors.