Climate risk
[2] The assessment of climate risk is based on formal analysis of the consequences, likelihoods and responses to these impacts.
This is a type of insurance designed to mitigate the financial and other risk associated with climate change, especially phenomena like extreme weather.
Risk assessments are based on responses of a climate system that is no longer staying within a stationary range of extremes.
Each component of climate risk - hazards, exposure and vulnerability - may be uncertain in terms of the magnitude and likelihood of occurrence.
The IPCC uses qualitative rating scales for uncertainty which may be based on quantitative results or expert judgement.
Examples are business, economics, environment, finance, information technology, health, insurance, safety, and security.
[34] The IPCC Sixth Assessment Report considers risks within important sectors affected by climate change, like agriculture, water, cities, ecosystems, health and livelihoods.
[36]: 290 Wildfires and increased pest infestations due to climate change caused much of the recent tree mortality in North America.
[36] : 280 Risks to seas and coastal areas include coral bleaching linked with ocean warming.
There are also indirect risks such as mental health impacts of undernutrition or displacement caused by extreme weather.
[38]: 1076 Similarly there are mental health risks from loss of access to green spaces, reduced air quality, or from anxiety about climate change.
Population growth and land use change will influence human health and productivity risks in cities.
This is especially the case in coastal settlements where flood risks are exacerbated by sea-level rise and storm surges.
When supply cannot meet demand from expanding settlements, urban residents become exposed to water insecurity and climate impacts.
Access to basic infrastructure services such as water and sanitation, electricity, roads, telecommunications is another aspect of vulnerability of communities and livelihoods to climate change.
There are other forms of disadvantage due to discrimination, gender inequalities and through lack of access to resources This includes people with disabilities or minority groups.
[40]: 1251 In 2020 the World Economic Forum ranked climate change as the biggest risk to economy and society.
[42] Companies publicly criticised for their environmental policies or high emissions might lose customers because of negative reputation.
These have contributed to drier soil conditions, lower groundwater tables and reduced or changed flows of rivers.
For example, an impact of the floods in Thailand in 2011 was disruption to manufacturing supply chains affecting the automotive sector and electronics industry in Japan, Europe and the USA.
[9]: 2441–2444 [46] International risks potentially could affect small trade-dependent countries especially those dependent on food imports.
They could also affect richer, developed nations that are relatively less exposed to direct risks from climate change.
In addition, there are potential consequences from adaptation responses initiated in one country that might transmit or alter risks elsewhere.
For example, a decision to pull out of investment in risky markets may increase climate vulnerability for many communities.
One of primary roles of the IPCC, which was created by the United Nations Environment Programme (UNEP) and the World Meteorological Organization (WMO) in 1988, is to evaluate climate risks and explore strategies for their prevention and publish this knowledge each year in a series of comprehensive reports.
The assessed levels of risk generally increased compared to previous reports, whilst the impacts were found to have been on the high end of what had been expected.
