April 16, 2026
This handbook has been developed to support climate scientists as they navigate the growing intersection between climate science and the business and finance sectors. As climate-related financial disclosures become mandatory for large organisations in Australia, the demand for credible, science-informed physical climate risk assessments is increasing rapidly. These requirements will also influence smaller organisations through procurement, insurance, lending, and supply-chain expectations, making an understanding of climate risk relevant across the entire economy.
For climate scientists, this shift creates a significant opportunity to contribute expertise where it is urgently needed. Businesses and financial institutions are now expected to assess how future climate conditions (such as heat extremes, storms, fire weather, flooding, or sea-level rise) may affect assets, operations, and strategic decision-making. Yet many organisations are still developing the capability to interpret climate information and connect it meaningfully to financial risk. The language, assumptions, and analytical approaches used in finance often differ markedly from those used in climate science, which can make collaboration challenging without shared reference points.
This handbook aims to provide such reference points. It offers an introduction to the concepts, frameworks, and terminology that underpin risk assessment in business and finance and compares them to corresponding thinking in climate science. Risk in business context has a long-established history but is adapting quickly as climate risk becomes a mainstream consideration. Understanding the space sufficiently to contribute to the development of physical risk assessment approaches requires engaging with ideas that may be unfamiliar or used differently in scientific contexts.
