Over the long term, climate change will result in both acute events (e.g. increased severity and frequency of extreme weather phenomena) and chronic environmental changes (e.g. sustained higher temperatures). Resultant risks may manifest as: • operational risk (e.g. fines and penalties due to non- compliance) resulting in one-off losses or broader sustainability challenges (e.g. workforce absenteeism and illness due to extreme weather events) for the group or for clients; or • credit risk for the group due to damage to physical property and infrastructure resulting in productivity losses or supply chain disruptions which impact customers’ cash flows and ability to service existing debt.