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Report

Addressing systemic climate risks in the energy sector

Climate-driven physical risks are increasing worldwide, creating heightened and growing vulnerabilities for energy companies. 

This report uncovers how rising frequency and intensity of extreme weather, chronic asset degradation, and interconnected supply chains create cascading risks that can erode capacity, cashflow and access to capital.

Key takeaways:

  • Physical risks are intensifying: both acute events (storms, floods) and chronic impacts (heat, corrosion) threaten asset value and uptime.
  • System-level interdependencies can rapidly cascade localized events into major operational and financial losses.
  • Early, targeted resilience investments combined with appropriate risk financing preserve cashflow and access to capital.
  • A clear, quantified roadmap —backed by scenario analysis and cost benefit rigor— is essential to secure executive and investor support.

Learn the practical steps to translate physical exposures into financial terms and to protect people, operations, and balance sheets.

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