For the physical risk assessment, WSP evaluated projected chronic risks of increased temperatures, sea level rise, and precipitation changes and acute risks of flooding, cyclonic events, extended drought and extreme temperatures across ten key sites for the 2035 and 2060 time horizons. Future risks were based on the IPCC’s Representative Concentration Pathway (RCP) 8.5 emissions scenario. The assessments considered and factored in both the likelihood and consequences of a particular risk affecting operations at each site over two time horizons, characterizing risk as low, medium or high.
The transition risk and opportunity assessment evaluated the client’s exposure to transition risks related to climate change, including policy and legal, technology, market, reputation and operational risks – as well as opportunities – that could arise from the transition to a low-carbon or carbon-constrained economy. This transition analysis was based on the International Energy Agency’s (IEA’s) 2019 World Energy Outlook global climate change scenarios: Current Policies Scenario (CPS), Stated Policy Scenario (STEPS), and Sustainable Development Scenario (SDS), assessing medium- and long-term (2-15 and 15-30 years) risks and opportunities.
