General Requirements - Climate Risk and Vulnerability Assessment
The physical climate risks that are material to the activity have been identified from those listed in this article by performing a robust climate risk and vulnerability assessment with the following steps:
Screening of the activity to identify which physical climate risks from the list in Section II of this Appendix may affect the performance of the economic activity during its expected lifetime;
Where the activity is assessed to be at risk from one or more of the physical climate risks listed in Section II of this Appendix, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;
An assessment of adaptation solutions that can reduce the identified physical climate risk.
Requirements concerning the scope of the Assessment
The climate risk and vulnerability assessment needs to be proportionate to the scale of the activity and its expected lifespan, such that:
For activities with an expected lifespan of less than 10 years: the assessment is performed, at least by using climate projections at the smallest appropriate scale;
For all other activities: the assessment is performed using the i) highest available resolution, ii) state-of-the-art climate projections across the existing range of future scenarios consistent with the expected lifetime of the activity, including, at least, 10 to 30 year climate projections scenarios for major investments.
The climate projections and assessment of impacts are based on:
Best practice and available guidance;
Take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports, scientific peer-reviewed publications, and open source or paying models.
For existing activities and new activities using existing physical assets:
The economic operator implements physical and non-physical solutions (‘adaptation solutions’);
The assessment is performed over a period of time of up to five years;
The solutions must reduce the most important identified physical climate risks that are material to that activity;
An adaptation plan for the implementation of those solutions must be drawn up accordingly.
For new activities and existing activities using newly-built physical assets:
The economic operator integrates the adaptation solutions that reduce the most important identified physical climate risks that are material to that activity at the time of design and construction and has implemented them before the start of operations;
The adaptation solutions implemented do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;
The adaptation solutions are consistent with local, sectoral, regional or national adaptation strategies and plans;
The adaptation solutions consider the use of nature-based solutions or rely on blue or green infrastructure to the extent possible.