Our comprehensive climate risk assessment identified a list of high-impact climate risks under 2 scenarios: the Turquoise and Brown Scenarios1. Physical risks and transitional risks along our value chain are identified in our climate risk assessment based on scenario analyses that consider impacts along a timescale from the immediate term to 2030 and as far ahead as 2100, with relevant climate parameters.

We have included several types of climate-related risks in the assessment, including acute physical risk, chronic physical risk, current regulation, emerging regulation, technology risk, legal risk, market risk and reputational risk. Below shows the identified climate risks and opportunities, the potential financial impacts and our corresponding actions.

1The physical pathway under Turquoise Scenario is associated with RCP2.6 and SSP1 developed by IPCC, while the transition pathways are based on different scenarios, such as the Sustainable Development Scenario developed by IEA and the Orderly Pathways developed by NGFS. For Brown Scenario, the physical pathway is associated with RCP8.5 and SSP5 developed by IPCC, while the transition pathways are based on Stated Policy Scenario developed by IEA and the Hot House World developed by NGFS.

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