“The recent fires have destroyed more than 5,000 power poles across Victoria and NSW and entire sections of electricity networks are being rebuilt from the ground up.” The quote, which refers to the 2020 bushfires in south eastern Australia, was taken from a media release issued by Energy Networks Australia. In these bushfires and other extreme weather events, there are trends that increasingly demonstrate the influence of climate change on the earth’s systems. In this article we explore the financial impact of climate change and how that is changing the risk profile of assets across the business community. To illustrate the risks, we consider the challenges facing Australia’s electricity transmission and distribution assets, as highlighted both here in most recent bushfire season and in the vast fires impacting California this same year.”
This excerpt is taken from the article as published in the Australian Institute of Energy’s Q4 2020 Energy News. As more and more businesses seek to understand the physical risks posed by the changing climate, Dr Weiss and Dr Wood explore the cases in which a business and its operations are both at risk from increasing temperatures, lower rainfall and more volatile weather, but also can create risks through their operation in hotter, drier environments.