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Physical Risks of Climate Change

Physical risks of climate change refer to the direct and indirect impacts that climate change can have on the physical environment and infrastructure, which can in turn affect the economy, human health and social well-being. These risks can include:
  1. Extreme weather events: Climate change can lead to more frequent and severe extreme weather events, such as hurricanes, floods, droughts, and wildfires, which can cause physical damage to infrastructure, homes, and businesses, and disrupt supply chains and trade.
  2. Sea-level rise: Climate change is causing sea levels to rise, which can lead to flooding, erosion, and damage to coastal infrastructure, including ports, roads, and buildings. This can result in economic losses, displacement of communities, and impacts on public health.
  3. Water scarcity: Climate change can lead to changes in rainfall patterns, leading to water scarcity in certain regions. This can affect agriculture, industry, and human health, and may exacerbate conflicts over water resources.
  4. Temperature extremes: Climate change can lead to extreme heat events, which can cause heat stress, dehydration, and other health impacts. It can also lead to changes in crop yields, energy demand, and infrastructure damage due to melting permafrost.
Physical risks of climate change pose significant challenges for businesses, governments, and communities, and can have long-term impacts on economic stability, human health, and social well-being. Companies are increasingly assessing their exposure to physical climate risks and taking steps to mitigate these risks through measures such as investing in more resilient infrastructure, diversifying supply chains, and improving disaster preparedness.
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