Along with climate change, the emerging challenge of hazardous events such as sea level rise, floods and extreme weather events have come to cast their direct risks towards the daily operation of corporate assets. Having employed professional methods and databases, STGF Physical Risk Model conducts a comprehensive grid analysis of 7 common climate-related events, accurately assessing their physical impacts upon the target corporate.
STGF Physical Risk Model utilises an event-driven analysis method, categorising climate-related hazardous events into gradual climate change events and extreme weather events, measuring their degree of physical risks from the following dimensions:
STGF Physical Risk Model utilises an event-driven analysis method, categorising climate-related hazardous events into gradual climate change events and extreme weather events, measuring their degree of physical risks from the following dimensions:
- Hazard level of the climate change events, which include their probability and intensity;
- Exposure and Vulnerability level of assets of the target corporate (i.e., the risk body)
Event Coverage
- Sea Level Rise
- Water Shortage
- Ecosystem Damage
- Heat Wave
- Extreme Cold
- Drought
- Flood
The geographic scope of each physical risk type covers the entire territory of China (granularity is at approximately 10 x 10 km). Each type of physical risk contains more than 30 data points, covering three levels of indicators of Hazard, Exposure and Vulnerability. Each indicator was standardised and normalised into percentage data.