ESG Risk

According to the market, Physical Risk in ESG  are those risk which is threat to material assets, business properties & human resources due to climate related changes. There are 2 kinds of physical risk. Acute Risk & Chronic Risk.

Acute Physical Risk are those driven by specific hazards or weather events such as droughts, heat waves, cyclone, floods, wildfires, etc. 

Chronic Physical risk are those driven by long term shifting climate patterns such as rising sea levels, changing temperature, changing wind patterns etc. 

It is important for financial organization & Insurance companies to understand the risk associated with their clients assets. ESG enabler helps organization in identifying the exposure score of their stakeholders based on the climate changes by understanding the data available in the market and helps them in creating physical risk score card and aligning with ESG prudential disclosure templates.