Nature Risks - Overall Nature Risk Level
Overall Nature Physical Risk & Overall Nature Transition Risk
For each site, an Overall Nature Physical Risk Level and an Overall Nature Transition Risk Level are calculated based on the individual risk likelihoods within each category (Physical or Transition).
- Physical Risks: Loss of Water Supply, Loss of Freshwater Quality, Loss of Biodiversity-Dependent Ecosystem Services
- Transition Risks: Land Use Restriction, Deforestation, Pollution
For this calculation, the Likelihood Levels are treated numerically (VL = 1, L = 2, M = 3, H = 4, VH = 5) and summed across the three risks in each group.
The resulting Overall Nature Risk Score is then scaled to a 0–10 range using the following:
The Overall Nature Risk Level is then derived from this score using the following thresholds:
- Score 0 – 4 = Very Low
- Score 4 – 5 = Low
- Score 5 – 7 = Moderate
- Score 7 – 8 = High
- Score 8 – 10 = Very High
The threshold values are intentionally set with wider intervals for lower scores and narrower intervals for higher scores, reflecting the greater sensitivity of sites at the upper end of the risk spectrum. This approach supports effective prioritization, helping to identify sites with the highest concentration of nature-related risks across the portfolio.
Example (Overall Nature Transition Risk)
A site with the following Likelihood Levels across the three transition risks:
- Land Use Restriction Risk = Moderate (=3)
- Deforestation Risk = High (=4)
- Pollution Risk = Very High (=5)
… results in an Overall Nature Transition Risk Score of 6.5, based on the calculation:
