ELI5: Explain Like I'm 5

Climate risk

Climate risk is the possibility that the climate will change in a way that causes problems for people and the environment. Think of it like a big puzzle - many different things in the world are connected and depend on each other. If something changes in one part of the puzzle, it can affect other parts too.

For example, when the Earth gets warmer because of things like greenhouse gas emissions from cars and factories, it can cause things like rising sea levels and more extreme weather events such as floods, droughts and hurricanes. These can harm homes, crops, animals, and can also make it difficult for people to live in a certain area.

Companies and organizations also face climate risks, from damage to their physical assets and supply chain disruptions, to increased insurance premiums and regulatory risks.

It's important for people and organizations to understand climate risks and plan for them, so that they can try to prevent or lessen the harm caused by them. This can include things like being more energy efficient and using renewable energy sources, creating flood defenses and building more resilient infrastructure, and being mindful of how operations are contributing to climate change.
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