Climate Risk

The terms

• Carbon Footprint

  A carbon footprint is the total greenhouse gas emissions caused by a person, organisation, event or product, usually stated in tonnes of carbon dioxide equivalent over a set period.

  Domain: Sustainability and ESG

• Carbon Pricing

  Carbon pricing puts a cost on greenhouse gas emissions, through a tax or a tradable permit scheme, so that polluters bear the damage they cause and have a reason to cut it.

  Domain: Sustainability and ESG

• Climate Adaptation

  Climate adaptation means adjusting people, assets and systems to cope with climate impacts that are already happening or expected, so that harm is reduced and opportunities are taken.

  Domain: Sustainability and ESG

• Climate Mitigation

  Climate mitigation means cutting greenhouse gas emissions or removing them from the atmosphere, so that global warming is slowed and limited.

  Domain: Sustainability and ESG

• Internal Carbon Price

  An internal carbon price is a cost per tonne of carbon dioxide that a company sets for itself, and applies in its own decisions, to reflect the present or future cost of emissions.

  Domain: Sustainability and ESG

• Physical Climate Risk

  Physical climate risk is the risk of damage and loss from climate hazards, either sudden events such as floods and storms or slow shifts such as rising seas and sustained heat.

  Domain: Sustainability and ESG

• Scope 1 Emissions

  Scope 1 emissions are greenhouse gases released directly from sources that an organisation owns or controls, such as boilers, furnaces, company vehicles and process leaks.

  Domain: Sustainability and ESG

• Stranded Assets

  Stranded assets are assets that lose value early, or become unusable, because of changes such as climate policy, new technology or shifting demand, leaving owners and lenders with write-downs.

  Domain: Sustainability and ESG

• Transition Risk

  Transition risk is the risk of financial loss arising from the shift to a low-carbon economy, through changes in policy, technology, market demand, legal liability and reputation.

  Domain: Sustainability and ESG