Chronic physical risk

    ESG & Governance

    Climate risk from long-term shifts, such as rising average temperatures, sea level rise and changing rainfall.

    Chronic risks build slowly but can permanently change how viable a location or business is. Examples include falling groundwater, lower crop yields, more cooling needs for data centres and greater flood exposure for coastal cities. They matter most for long-lived assets such as infrastructure, real estate and power plants.

    Related terms