Risk FAQ

Below you will find some commonly asked questions and their answers regarding the Risk feature.

I don’t see risk results in the risk graph. How come?

There are 2 possible explanations for this;

• If you see “No data available”, then there is still some input data missing. Go back to the “Details” tab and make sure that the relevant business unit has all relevant info, including location and revenue.
• If you see a “-” instead of a calculated risk result, then the underlying data is not available for this specific location. In other words, the data providers we use to calculate transition and physical risk don’t provide data for this specific location. Feel free to report this to us so that we can flag this to the data providor.

Why do the climate risk depend on time horizon and climate scenario?

Climate risks — both physical (like heatwaves, floods, or droughts) and transition (related to policy, market, and technological changes) — are strongly influenced by how global warming evolves over time.

The time horizon matters because climate impacts accumulate. Short-term projections (e.g., 5–10 years) reflect limited physical change, while longer-term horizons (e.g., 2050 ) capture more significant shifts in temperature, precipitation, and sea level — and therefore higher potential risks.

The climate scenario defines the path of global greenhouse gas emissions and warming outcomes. Different scenarios (such as low-emission vs. high-emission pathways) lead to different risk profiles:

• In low-emission scenarios, the world limits warming, so physical risks are relatively lower. However, transition risks — those arising from rapid policy shifts, carbon pricing, or changes in technology — tend to be higher, as economies and industries adjust quickly to a decarbonized future.
• In high-emission scenarios, there is little transition pressure, so transition risks are lower. But the physical risks increase substantially due to more extreme climate impacts.