Impacts of the Evolution of Physical Climate Risks on European Business Activities: the case of construction sector

Abstract

Nowadays, the constant increase in the intensity and frequency of extreme weather events, attributed to climate change, is exerting growing pressure on companies across various sectors. These businesses are becoming increasingly vulnerable to diverse physical climate risks. Changes in regulatory frameworks regarding the identification, management, and communication of climate risks are further encouraging companies to adopt a proactive approach in assessing these risks. This study, employing an innovative methodology, demonstrates how risk management professionals can leverage currently available climate data to identify climate risks that have the most impact on their performance indicators. We illustrate this methodology by applying it to the construction production sector in France.