SPECIAL REPORT: CLIMATE CHANGE TO DRIVE SEVERE, COMPLEX RISK ENVIRONMENT IN MEDIUM TO LONG TERM 

Severe weather events create significant and cumulative impacts on local communities and businesses, increasing risks associated with public health, economic development, worker productivity, energy and food security. Government stability risks in several jurisdictions are highly likely to increase as a result of competing resource demands and policy priorities. This will raise tensions on both an inter-state and federal-to-state level. Additionally, the politics of ESG are likely to result in a fragmented policy environment in which two parallel regulatory frameworks materialise. Organisations will face rising reputational, compliance and corporate governance risks as a result of inconsistencies arising from an unlevel playing field.