Physical risks
Transition risks
This category of risk includes acute risks related to climatic events and 
chronic risks related to long-term changes in the climate.
These risks stem from changes in decarbonization-related policies, 
regulations, technologies, markets and behaviours. They may affect our 
products and investments and are accompanied by new expectations 
from our members and regulatory authorities.
Examples of acute risks:
•	 Floods  
•	 Storms and high winds  
•	 Heat waves  
•	 Wildfires  
•	 Freezing rain or cold spells 
Examples of chronic risks:
•	 Sea-level rise
•	 Rising average temperatures
•	 Climate-related deterioration of infrastructure
Examples:
•	 New greenhouse gas (GHG) emission standards
•	 Introduction or increase in carbon pricing
•	 More stringent climate-related disclosure requirements
•	 Costs associated with implementing clean technologies
•	 Shifting consumer preferences
•	 Declining demand for carbon-intensive products
•	 Rising energy input costs
2025 – CSR SUMMARY 
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