CONTENTS
Material risk is any climate-related risk likely to significantly impact an organisation’s financial performance or operations. In EarthScan, this typically refers to assets with a rating of C or below.
Example in context
An insurer uses EarthScan to screen a property portfolio. All assets with a material risk rating trigger further review before underwriting, as they may affect capital planning and disclosure.
Why it matters
Materiality is central to disclosure frameworks. Defining which risks are material helps organisations focus their reporting and investment decisions where they matter most.
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