Which sector is most directly impacted by physical climate risks?

The agriculture sector is most directly impacted by physical climate risks due to its reliance on climatic conditions for crop yields and livestock health. Climate-related events such as droughts, floods, and extreme weather significantly affect agricultural productivity. For instance, changing rainfall patterns can lead to either water scarcity, which may hinder crop growth, or excessive water, which can result in soil erosion and crop damage. Moreover, temperature fluctuations can affect the growing season and the viability of certain crops, thereby impacting food supply and prices.

Agriculture's intimate relationship with the environment makes it particularly vulnerable to climate change, necessitating adaptive strategies to mitigate risks. This sector is not only affected by immediate impacts but also faces long-term challenges as climate conditions evolve, making its sustainability a critical consideration for food security and rural economies.