What do stakeholders expect to find in a climate risk report?

Stakeholders expect to find a clear assessment of climate-related risks in a climate risk report because the primary purpose of such reports is to identify, evaluate, and communicate the potential impacts of climate change on an organization or sector. A well-structured climate risk report provides insights into both physical risks (such as the impact of extreme weather events on operations) and transitional risks (like regulatory changes or shifts in consumer behavior), thus enabling stakeholders to understand their exposure to these risks and make informed decisions.

This kind of assessment is crucial for effective risk management, as it informs strategic planning, investment decisions, and regulatory compliance. Stakeholders—including investors, regulators, and customers—are looking for transparency, accountability, and a readiness to address these challenges, which a thorough evaluation of climate-related risks can provide.