Of agricultural raw materials disruptions for

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of agricultural raw materialsDisruptions for operations and workers atmanufacturing facilitiesDisruptions in supply chain and distributionnetwork, including transport, warehouses,and storesShifting consumer preferences (e.g., less reliableseasonal cycles and temperatures)Climate impacts can affect labor and operations, physical assets,supply chain, distribution chain, consumers, and the communi-ties on which companies depend. Some impacts will be direct(e.g., property damage due to flooding), while others will beindirect (e.g., reduced water availability due to increased demandfrom others). Some will be due to extreme weather events (e.g.,stronger storms), while others will be due to incremental climaticchanges (e.g., rising ambient air temperatures).The table below summarizes some of the relevant physical climateimpacts and value chain risks (and, in some instances, opportuni-ties) for key sectors, with more information on each sector in thesections that follow.6
BUSINESS SECTORRELEVANT SHORT- ANDLONG-TERM PHYSICALCLIMATE IMPACTSILLUSTRATIVE EFFECTSON VALUE CHAINELECTRIC POWERIncreased intensity and duration of extremeweather events, such as heat waves, storms,and floodsWarmer average temperaturesStorm surgeRising sea levelWater scarcity and overall variability in watersupply and precipitation patternsReduced output (e.g., inadequate quantity andquality of water for hydroelectric plants orto cool nuclear and fossil fuel plants)Damage to infrastructure and facilitiesChanging seasonal power demand andincreased peak demand during extreme heator other conditionsIncreased electricity losses in transmissionand distribution systems due to heat loadINSURANCEVirtually all physical effects, including hurricanesand storms, wildfires, floods, droughts, sea-level rise, thawing permafrost, and increasedexposure to diseasesIncreased claims, losses, and liabilitiesMore difficulty pricing physical perilsReduced availability and affordability of sometypes of insurancePotential need for new products to addressphysical climate risksReduced value of investment portfolioMININGWater scarcity and droughtPrecipitation extremes and floodingIncreased intensity and duration of extremeweather events, such as stormsRising sea levelRising temperaturesThawing permafrost and land iceIncreased wildfiresIncreased exposure to diseasesConstrained exploration, processing, refining,and site rehabilitationDamage to infrastructure and facilitiesHigher decommissioning costsAltered access to mining depositsand coastal facilitiesDisrupted transportation routes and reducedport availabilityRisks to worker health and safetyWater conflicts with communities(and damaged corporate reputation)OIL AND GASIncreased intensity and duration of extremeweather events, such as storms and floodsRising sea level, higher storm surges, andincreased coastal erosionLand and sea ice melting and permafrostthawing

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Term
Spring
Professor
N/A
Tags
weather, Extreme weather

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