A new handbook from the NESP Climate Systems Hub highlights the growing importance of Physical Climate Risk Assessments (PCRAs) in finance, insurance, and corporate decision-making. As governments and regulators introduce mandatory climate-related financial disclosures and financial stress testing, businesses increasingly need robust climate science to understand risks from heat, flooding, storms, bushfires, sea level rise, and other climate impacts.

Climate scientists have a critical role to play in ensuring these assessments are scientifically credible, relevant, and decision-ready. Many organisations currently struggle to interpret climate information, communicate uncertainty, and link hazards to financial consequences. Without strong scientific input, there is a risk of flawed climate disclosures and poor adaptation decisions.

The next few years are likely to shape industry standards and best practice for decades to come. This creates a unique opportunity for climate scientists to help guide how financial systems respond to climate risk and adaptation challenges.

What does this mean for the seafood sector?

As climate-related financial disclosures become mandatory, seafood businesses, aquaculture operators, processors, insurers, and investors will increasingly need to demonstrate that they understand and are managing their exposure to climate risk. From marine heatwaves and changing ocean conditions to storm damage and supply chain disruptions, physical climate risks are becoming financially material for the seafood sector. This means that robust, science-based climate risk assessments will play an increasingly important role in investment, insurance, adaptation planning, and long-term business resilience.

Read the full article and explore the new handbook for more information.