Vietnam is preparing to face Typhoon Yagi, the strongest storm expected to hit the Northern region in nearly a decade. Yagi is a clear example of the growing frequency of extreme weather events driven by climate change. In this context, businesses today and in the future must address potential risks related to climate change, which we categorize as "physical risks" and "opportunity risks."
Physical risks refer to tangible damages to assets that businesses can directly observe and measure, resulting from fires, floods, or other natural disasters. These damages require businesses to spend on repairs or replacements and can also result in legal liabilities. Since these risks can often be anticipated, they should be included in business strategies.
Opportunities risks arise when businesses miss out on significant opportunities due to an overemphasis on short-term goals and profits. These risks typically occur when businesses are slow to adapt, innovate, or invest in long-term goals like sustainability and green development.
Addressing these risks requires both immediate and long-term attention to ensure sustainability and resilience against environmental changes. Businesses can reduce these risks by implementing measures and planning for climate-related scenarios. KLINOVA with its experienced team in sustainable development and innovation, is dedicated to helping investors and businesses adopt long-term, sustainable solutions and identify risk scenarios related to climate change and financial decisions.
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