CONTENTS
Chronic climate risk refers to long-term changes in climate conditions, such as rising temperatures, prolonged droughts, or gradual sea level rise.
Example in context
An agricultural company in Spain may face reduced yields over time due to persistent drought and heat stress. These slow-onset risks are considered chronic.
Why it matters
Chronic risks affect long-term asset performance, business models, and supply chains. They are especially important for financial planning and disclosure.
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