The study also found that weather events create and exacerbate risks to financial investments by causing:
Direct physical impacts on the investments themselves
Degradation of critical supporting infrastructure
Changes in the availability of key resources
Changes to workforce availability or capacity
Changes in the customer base
Supply chain disruptions
Shifts in the regulatory environment
Reductions in credit ratings
Additional impacts that alter competitiveness (e.g., shifts in consumer preferences).
To overcome communication barriers that stem from technical terms often used in scientific assessments, the AMS report proposes three pre-defined levels of certainty for communicating with user communities about future climate impacts: possible, probable and effectively certain.
For example, the study reports that it is effectively certain that a change in climate will alter weather patterns. It is probable that climate warming will cause increases in the intensity of some extreme events. It is possible that climate change will cause major and widespread disruptions to key planetary life-support services.
The report concludes that financial investments face a range of risks due to existing weather patterns, climate variability and climate change. Even small changes in weather can impact operations in critical economic sectors. At the same time, climate variability and change can either exacerbate existing risks or cause new sources of risk to emerge.
Economic losses from extreme weather events have risen from an annual global average of about $50 billion in the 1980s to close to $200 billion over the last decade, according to the report released by the World Bank.