What's a climate change risk assessment?

A climate change risk assessment is a structured evaluation of how changing climate conditions—such as extreme heat, flooding, wildfires, sea-level rise, and severe storms—could impact your facilities, assets, supply chains, and operations. The assessment identifies vulnerabilities, models future risk scenarios, and provides actionable strategies to improve resilience, protect people and property, and support compliance with insurance and ESG requirements.

What are 5 things a climate change risk assessment should include?

A thorough climate change risk assessment should include: Hazard identification – pinpointing climate threats relevant to your location and industry. Vulnerability analysis – evaluating how hazards affect assets, infrastructure, and supply chains. Scenario modeling – using near-, mid-, and long-term climate projections to assess risks. Business impact evaluation – quantifying potential downtime, financial loss, and operational disruption. Mitigation strategies – developing targeted actions to strengthen resilience and reduce long-term risk.

What is the standard for a climate change risk assessment?

A credible climate change risk assessment follows internationally recognized frameworks and scientific models to ensure accuracy and comparability. In Europe, assessments often reference Annex A of the Delegated Regulation (EU) 2021/2139, which supplements the EU Taxonomy Regulation, and Annex A of criterion SITE1.1 of the DGNB criteria catalogue. These define which climate hazards must be evaluated, such as flooding, extreme heat, drought, wildfires, and sea-level rise.

How do we measure climate risk?

Climate risk is measured by evaluating the likelihood of climate-related hazards (such as flood frequency or extreme temperature increases) and the consequences of those events for business operations. This is done through data collection, climate modeling, site inspections, and impact analysis to estimate potential losses, downtime, and disruptions. The result is a clear, data-driven profile of an organization’s exposure, which guides mitigation investments and supports insurance and regulatory compliance.

Climate Risk Assessment Services

Climate Risk Assessments Are Critical

How susceptible are your facilities to climate-related perils now and in the future? A Climate Change Risk Assessment provides critical information about your risk of tropical cyclone, river flood, sea level rise, fire stress, drought, heat, precipitation, and wildfire – and how those risks may intensify by 2030, 2050, and 2100.
Climate change risk reports not only empower risk managers to take necessary protections against climate threats, but they also satisfy EU Taxonomy and Environmental Safety and Governance (ESG) requirements. Reports can be developed for single locations or portfolios with thousands of properties.

Climate Change Assessments

What’s Included in a Climate Change Assessment?

Climate Change Assessments analyze the likelihood of climate-related perils impacting your facilities. Loss estimates can also be provided for certain perils. These assessments analyze the following risks:

Tropical Cyclone: Based on 100-year wind intensity models
River Flood: Includes 100- and 500-year flood maps using JBA and CMIP5 data
Sea Level Rise: Derived from IPCC data and elevation models
Fire Weather Stress Index: Combines ignition probability, spread speed, and fuel availability
Drought Stress Index: Based on SPEI to measure water balance changes
Heat Stress Index: Includes heat waves, max temperatures, and tropical nights
Precipitation Stress Index: Assesses single-day and prolonged high precipitation events

Why Are Climate Change Assessments Important?

Climate risks are expensive. Global economic losses from natural disasters in 2022 cost $275 billion USD, according to Swiss Re. Insured losses represented 45% of that damage, the fourth highest total for a single year.
Anticipate future financial risks. Climate-related perils may not be impacting your business today but could have a dramatic impact in the future. Our climate risk reports offers estimated financial damages to your organization’s property in 2030, 2050, and 2100.
Improved risk strategy. Climate Change Assessment reports empower company leaders to future-proof risk management strategies.
Increased regulation. The European Green Deal is an initiative aiming to set the EU on a path to carbon neutrality by 2050 with important regulations that European businesses and companies doing business in Europe must follow.
Finance improvements. Climate Change Assessments give companies the information necessary to get financing for climate change adaption such as repairs, and upgrades based on Appendix A of the EU Taxonomy requirements.
Consumer expectations. Consumers are voting with their wallets. If you don’t showcase plans to become more sustainable and take action on climate change, you may lose market share to competitors.
Insurability. Organizations must demonstrate a proactive push on climate change risks as insurance capacity continues to reduce. In fact, traditional capacity in 2022 reduced by 20-25% vs. 2021.

The Scientific Framework Behind Our Reports

Climate Change Assessments from Global Risk Consultants are powered by Munich Re, a leader in climate hazard assessment services. The assessments are based on the Intergovernmental Panel on the United Nations Climate Change (IPCC) framework which formed the basis of the 2015 Paris Agreement. Munich Re uses a Representative Concentration Pathways (RCP) for atmospheric greenhouse gas concentrations from the fifth IPCC Assessment Report (IPCC AR5, 2014).

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Benefits of a Climate Change Assessment

A Climate Change Assessment helps organizations move beyond guesswork and take a data-driven approach to managing emerging risks. By understanding how changing climate patterns may impact facilities, supply chains, and long-term operations, companies can make smarter decisions that protect assets and people. Key benefits include:

Identify Vulnerabilities Early

Assessments highlight which facilities, processes, or geographies will be most exposed to future climate-related hazards such as flooding, extreme heat, drought, sea-level rise, or severe storms. Early identification allows organizations to take proactive steps before costly damage occurs.

Strengthen Business Continuity and Resilience

Disruptions from climate-related events can cause extended downtime, supply chain interruptions, and loss of revenue. A climate change assessment provides actionable insights to develop robust continuity and resilience plans that minimize disruption.

Improve Insurance Outcomes

Insurers increasingly scrutinize climate risk during underwriting. Demonstrating that you have assessed exposures and implemented mitigation strategies can reduce uncertainty, strengthen your submission, and improve negotiations on coverage and premiums.

Support Regulatory and ESG Compliance

Global and regional regulators are requiring more disclosure of climate-related risks. An assessment helps you align with emerging reporting standards and supports corporate Environmental, Social, and Governance (ESG) commitments.

Optimize Capital Planning and Investments

By knowing which sites or assets face the greatest climate risk, leaders can prioritize funding for upgrades, retrofits, or relocations. This ensures resources are allocated where they will deliver the greatest long-term value.

Enhance Stakeholder Confidence

Investors, employees, and customers want to see that your organization is prepared for the impacts of climate change. A documented assessment demonstrates accountability and proactive risk management, building trust with stakeholders.

The Climate Change Assessment Process

climate change assessment process

FAQS ABOUT CLIMA CHANGE RISK ASSESSMENT

What's a climate change risk assessment?

A climate change risk assessment is a structured evaluation of how changing climate conditions—such as extreme heat, flooding, wildfires, sea-level rise, and severe storms—could impact your facilities, assets, supply chains, and operations. The assessment identifies vulnerabilities, models future risk scenarios, and provides actionable strategies to improve resilience, protect people and property, and support compliance with insurance and ESG requirements.
What are 5 things a climate change risk assessment should include?
A thorough climate change risk assessment should include:
- Hazard identification – pinpointing climate threats relevant to your location and industry.
- Vulnerability analysis – evaluating how hazards affect assets, infrastructure, and supply chains.
- Scenario modeling – using near-, mid-, and long-term climate projections to assess risks.
- Business impact evaluation – quantifying potential downtime, financial loss, and operational disruption.
- Mitigation strategies – developing targeted actions to strengthen resilience and reduce long-term risk.
What is the standard for a climate change risk assessment?

A credible climate change risk assessment follows internationally recognized frameworks and scientific models to ensure accuracy and comparability. In Europe, assessments often reference Annex A of the Delegated Regulation (EU) 2021/2139, which supplements the EU Taxonomy Regulation, and Annex A of criterion SITE1.1 of the DGNB criteria catalogue. These define which climate hazards must be evaluated, such as flooding, extreme heat, drought, wildfires, and sea-level rise.
How do we measure climate risk?

Climate risk is measured by evaluating the likelihood of climate-related hazards (such as flood frequency or extreme temperature increases) and the consequences of those events for business operations. This is done through data collection, climate modeling, site inspections, and impact analysis to estimate potential losses, downtime, and disruptions. The result is a clear, data-driven profile of an organization’s exposure, which guides mitigation investments and supports insurance and regulatory compliance.