Climate-related physical risks are defined as a combination of hazard, exposure, vulnerability, and impact. They are classified into acute and chronic risks. Acute risks refer to hazards that are event-driven, such as cyclones, droughts, or floods. Chronic risks refer to long-term shifts in climate patterns that may cause the continuous evolution in climate variables such as increase in average temperatures, sea level rise, water stress, etc. Transition risks and opportunities are those associated with the pace and extent at which an organisation manages and adapts to the internal and external pace of change to reduce GHG emissions and transition to renewable energy. Transition risks include policy and legal risks, technology risk, market risk, and reputation risk. Transition opportunities include resource efficiency and energy source.

The resilience analysis is conducted in alignment with various regulations and sustainability frameworks such as the EU Taxonomy and the TCFD. For climate-related physical risks, the set of indicators studied, as well as the time horizons (baseline, 2030, 2050) and the scenarios (SSP2-4.5, SSP5-8.5) chosen as part of the study are aligned with the various regulatory requirements and recommendations (EU Taxonomy, CDP, TCFD and CSRD among others). For the transition risks and opportunities component, the choice of time horizons (2025, 2030, 2050) and scenarios – Nationally Determined Scenario ("NDCs") which corresponds to business as usual and net zero 2050 – followed the same logic.

The resilience analysis is conducted in alignment with various regulations and sustainability frameworks such as the EU Taxonomy and the TCFD. For climate-related physical risks, the set of indicators studied, as well as the time horizons (baseline, 2030, 2050) and the scenarios (SSP2-4.5, SSP5-8.5) chosen as part of the study are aligned with the various regulatory requirements and recommendations (EU Taxonomy, CDP, TCFD and CSRD among others). For the transition risks and opportunities component, the choice of time horizons (2025, 2030, 2050) and scenarios – Nationally Determined Scenario ("NDCs") which corresponds to business as usual and net zero 2050 – followed the same logic.

The timeframes are considered, consistent with the expected lifetime of the activity and the indications of the EU Taxonomy and CSRD: Baseline: average 1981 and 2010 – To understand current exposure; 2030: average between 2021 and 2040 – This timeframe is commonly used for defining climate adaptation planning and budgets; 2050: average between 2035 and 2064 – This timeframe is commonly used for strategic decisions, such as changing the business model or the geographic presence and long-term investments, such as building a new site.

The resilience analysis is conducted in alignment with various regulations and sustainability frameworks such as the EU Taxonomy and the TCFD. For climate-related physical risks, the set of indicators studied, as well as the time horizons (baseline, 2030, 2050) and the scenarios (SSP2-4.5, SSP5-8.5) chosen as part of the study are aligned with the various regulatory requirements and recommendations (EU Taxonomy, CDP, TCFD and CSRD among others). For the transition risks and opportunities component, the choice of time horizons (2025, 2030, 2050) and scenarios – Nationally Determined Scenario ("NDCs") which corresponds to business as usual and net zero 2050 – followed the same logic.

The concept of climate resilience involves organisations developing adaptive capacity to respond to climate change to better manage the associated risks and seize opportunities, including the ability to respond to transition risks and physical risks. Opportunities include improving efficiency, designing new production processes and developing new products. Opportunities related to resilience may be especially relevant for organisations with long-lived fixed assets or extensive supply or distribution networks; those that depend critically on utility and infrastructure networks or natural resources in their value chain; and those that may require longer-term financing and investment.