Physical Climate Risk Assessment Consultants | SLP Thailand
Physical Climate Risk Assessment for a Healthcare Facility in Bangkok
SLP Environmental conducted a Physical Climate Risk Assessment (PCRA) for a healthcare facility in Bangkok, Thailand, supporting the client’s investment due diligence and Equator Principles requirements. The study used TCFD-aligned climate scenario analysis, drawing on IPCC Sixth Assessment Report scenarios, to evaluate exposure to riverine flooding, drought, water stress, tropical cyclones and wildfires. Assessments across baseline and future time horizons through 2050 helped the client understand potential climate impacts on the facility and inform its investment decision.
The primary objective of the (PCRA) was to assess the relevant physical risks (as defined by the Task Force on Climate-related Financial Disclosures (TCFD)), and assess the exposure of the potential investment to the physical consequences of climate change under a number of varying scenarios as recommended by the Task Force on Climate-related Financial Disclosures (TCFD).
Climate Physical Risks are those risks resulting from climate change, which involve event driven (acute) or longer-term shifts (chronic) in climate patterns. Acute physical risks refer to those that are event-driven, including increased severity of extreme weather events such as cyclones, hurricanes, or floods. Chronic physical risks refer to longer-term shifts in climate patterns (e.g., sustained higher temperatures) that may cause sea level rise or chronic heat waves.
SLP performed a scenario-based analysis to evaluate the potential physical climate risk against different physical climate change scenarios adopted by the Intergovernmental Panel on Climate Change (IPCC) in its 6th Assessment Report (AR6). These included Optimistic, Business as Usual and Pessimistic scenarios, which were assessed against defined timeline horizons (Baseline, 2030, 2040/50).
Potential hazards assessed under the assignment included Riverine Flooding, Drought, Water Stress, Tropical Cyclones and Wildfires.
Performing a TCFD-aligned physical climate risk assessment at the site level allowed our client to better understand the potential future impacts of climate change on the DD target and thereby aiding their decision making process.
The PCRA study was presented in a bespoke standalone report which included figures and charts to illustrate key findings.