Physical risks

All global economic enterprise depends on the functioning of earth systems, such as a stable climate and on ecosystem services, such as the provision of biomass (raw materials). Nature-related physical risks are a direct result of an organisation’s dependence on nature. Physical risks arise when natural systems  are  compromised,  due  to  the  impact  of  climatic  events  (e.g., extremes  of  weather  such  as  a  drought),  geologic  events  (e.g.,  seismic events  such as  an  earthquake) events  or  changes  in  ecosystem equilibria, such as soil quality or marine ecology, which affect the ecosystem services organisations  depend  on.  These  can  be  acute,  chronic,  or  both.  Nature- related physical risks arise as a result of changes in the biotic (living) and abiotic    (non-living)    conditions    that    support    healthy,    functioning ecosystems.  Physical  risks  are  usually  location-specific.  Nature-related physical risks are often associated with climate-related physical risks.