Climate risk has gone way beyond science communication to hard facts. Last summer, costs to the EU hit 43bn to combat extreme weather. The reality on portfolio risk is now clear for all to see. For example, coastal assets become uninsurable, companies are vulnerable to rising energy input costs and challenges to recruit the workforce. Sustainability teams which were setup as a compliance function for ESG reporting are now required to be more integral to the deal lifecycle from due diligence, ownership and exit.
