LoopyLuci Climate Risk Assessment
Overview
Conduct comprehensive climate risk assessments following TCFD, IPCC, and ISO 14090 frameworks. Covers physical risk identification (acute and chronic), transition risk evaluation (policy, technology, market, reputational), climate scenario analysis, and risk quantification for infrastructure, supply chain, and financial assets.
When to Use
- "Assess climate physical risks to infrastructure"
- "Evaluate transition risks from climate policy"
- "Conduct TCFD scenario analysis"
- "Plan climate adaptation strategies"
- "Screen portfolios for climate risk exposure"
Physical Climate Risks
| Risk Type | Category | Examples |
|---|---|---|
| Acute | Event-driven | Hurricanes, floods, wildfires |
| Chronic | Gradual onset | Sea level rise, drought, heatwaves |
Scenario Analysis Framework
- 2°C Scenario: Moderate warming, policy action aligned
- 4°C Scenario: High warming, limited climate action
Transition Risk Categories
- Policy & Legal Risks
- Technology Risks
- Market Risks
- Reputation Risks
Common Pitfalls
- Using historical data only — must project future climate
- Ignoring supply chain cascading effects
- Not considering all scenario pathways
- Static analysis — not updating for climate progression
- Ignoring stranded asset risks
Verification Checklist
- Physical hazards mapped for all locations
- Transition risks assessed across scenarios
- Financial impact quantified with confidence intervals
- Scenario analysis covers 10+ year horizon
- Supply chain risks evaluated and mapped
- Risk owners and accountability defined
- Integration into enterprise risk management
- Stakeholder engagement completed