Climate vulnerability categories and their implications

🌍 Global Index of Climate Risk for Countries by European Investment Bank (EIB) EIB’s new Global Index of Climate Risk for Countries introduces a powerful new tool to understand how different countries face different climate threats—and what this means for global finance and policy. It breaks down climate risk into two distinct dimensions, offering a nuanced, data-driven view of vulnerability: 1. Physical Climate Risk: Chronic risks (rising temperatures, sea-level rise, agricultural loss, water stress) ➕ Acute risks (floods, wildfires, storms)➕ Adjusted for adaptive capacity (to reflect both exposure and ability to respond). 2. Transition Risk: Fossil fuel dependence ➕ Carbon intensity and emissions per capita ➕ Policy ambition and renewable energy share Key insights: 🌊 Small Island States and parts of Sub-Saharan Africa face extremely high physical risk—yet often have the least capacity to adapt. 💨 Countries in the Middle East and North Africa are exposed to intensifying heat and water stress. 🛢️ Fossil fuel exporters like Qatar, Kuwait, and Kazakhstan rank high in transition risk, due to dependency on carbon-intensive sectors. 🌍 Even high-income economies such as the U.S. and Canada face substantial transition risk from slow policy progress and high per capita emissions. Read the full report: https://lnkd.in/dReEzurG #ClimateRisk #EIB #PhysicalRisk #TransitionRisk #Sustainability #ClimateFinance #JustTransition #ParisAgreement #ClimateAdaptation #Resilience #NetZero #DevelopmentFinance

Business Risks from Climate Change 🌎 Businesses today face increasing exposure to climate-related risks that can disrupt operations, damage assets, and impact long-term viability. These risks are no longer hypothetical—they are material, measurable, and growing in relevance across all sectors. According to the TCFD, climate risks fall into two main categories: physical risks and transition risks. Physical risks include both acute events, such as storms and floods, and chronic impacts like water scarcity or rising temperatures. Transition risks emerge from the shift to a low-carbon economy and include regulatory changes, shifts in market demand, and pressure to invest in new technologies. Extreme weather events, supply chain interruptions, and damage to infrastructure are some of the key physical risks. These can lead to increased operational costs, reduced productivity, and disruptions in raw material availability. Transition risks are equally important. Carbon pricing, energy cost volatility, and investor scrutiny are reshaping business models. Companies that delay adaptation may face stranded assets, higher insurance costs, and reduced access to capital. Addressing these risks requires more than isolated sustainability initiatives. It demands integration into core business strategy, risk management, and investment planning. Short-term actions can have long-term implications. Clear priorities include assessing exposure, upgrading infrastructure for resilience, and embedding climate risk into existing governance and risk processes. These actions support both operational continuity and regulatory preparedness. Developing low-carbon strategies and enhancing disclosure practices aligned with standards like the TCFD are also essential steps. Transparent reporting builds trust with investors, regulators, and other stakeholders. Climate risk is business risk. Managing it effectively is no longer optional—it is fundamental to long-term value creation and competitiveness. #sustainability #sustainable #business #esg #climatechange #risks

Is your district prone to climate risk? Explore the 'District-Level Climate Risk Assessment for India' report to find out. 𝐾𝑒𝑦 𝑡𝑎𝑘𝑒𝑎𝑤𝑎𝑦𝑠: 𝖱𝗂𝗌𝗄 𝖬𝖺𝗉𝗉𝗂𝗇𝗀 𝖥𝗋𝖺𝗆𝖾𝗐𝗈𝗋𝗄:    - Methodology is based on the #IPCC framework, ensuring comparability across districts by assessing risks through hazard, exposure, and vulnerability components.   - By mapping risks at the district level, it provides granular insights, enabling targeted interventions tailored to local conditions and administrative units. 𝖯𝗋𝖾𝗏𝖺𝗅𝖾𝗇𝖼𝖾 𝖺𝗇𝖽 𝖣𝗂𝗌𝗍𝗋𝗂𝖻𝗎𝗍𝗂𝗈𝗇 𝗈𝖿 𝖱𝗂𝗌𝗄𝗌:    - #Floods and #droughts are the most prevalent climate hazards, affecting 87% and 30% of districts, respectively, with many regions experiencing both.   - Very high flood risk is concentrated in Assam and West Bengal, while drought risk is prominent in Bihar, Jharkhand, Odisha, UP, and Maharashtra. 𝖳𝗁𝖾 𝖣𝗋𝗂𝗏𝖾𝗋𝗌 𝗈𝖿 𝖱𝗂𝗌𝗄:    - High risk doesn’t solely stem from hazard intensity; exposure (e.g., population density) and vulnerability (e.g., poverty) can amplify impacts.   - For Ex. in Patna, high exposure and vulnerability elevate flood risk despite a lower hazard index. 𝖣𝗎𝖺𝗅 𝖱𝗂𝗌𝗄 𝖢𝗁𝖺𝗅𝗅𝖾𝗇𝗀𝖾𝗌:    - 11 districts, including Alappuzha, and several in Assam, face dual risks of floods and droughts, driven by erratic rainfall patterns and geographic vulnerabilities.   - These districts require integrated adaptation strategies to address overlapping hazards, such as managing monsoon floods and subsequent dry spells. 𝖢𝖺𝗉𝖺𝖼𝗂𝗍𝗒 𝖡𝗎𝗂𝗅𝖽𝗂𝗇𝗀 𝖺𝗇𝖽 𝖯𝗈𝗅𝗂𝖼𝗒 𝖱𝖾𝗅𝖾𝗏𝖺𝗇𝖼𝖾: - The project conducted workshops for ‘state climate change cells’ fostering the ability to replicate risk assessments and develop state-specific risk maps.   -Findings support the integration of climate risk into State Action Plans on Climate Change (SAPCCs) for securing #climatefinance. 𝖴𝗍𝗂𝗅𝗂𝗍𝗒 𝖿𝗈𝗋 𝖣𝖾𝖼𝗂𝗌𝗂𝗈𝗇-𝖬𝖺𝗄𝗂𝗇𝗀:    - District-level risk maps enable policymakers to identify and prioritize interventions in high-risk areas, optimizing resource allocation for adaptation measures.   - Risk indices empower local communities to advocate for compensation or insurance, enhancing grassroots resilience against climate impacts. 𝖥𝗎𝗍𝗎𝗋𝖾 𝖣𝗂𝗋𝖾𝖼𝗍𝗂𝗈𝗇𝗌:  - The report suggests developing risk indices for sectors like agriculture and urban water supply to address specific vulnerabilities.   - It recommends extending assessments to future climate scenarios and other hazards-e.g., landslides and heat stress.