As climate risks intensify, governments are turning to climate risk assessments to help communities prepare, adapt, and build resilience.
If you’re about to embark on one, this guide offers practical insights drawn from our experience delivering assessments across Australia. It’s designed to help you start strong and align with best practice from the outset, based on key insights we’ve found along the way.
Why do a climate risk assessment?
A climate risk assessment (CRA) helps us gain a clear understanding of the intermediate and long-term risks and the measures needed to mitigate and adapt to them. Like any strategy, it’s a tool that makes sense of both the physical impacts of climate change, such as sea level risk and heatwaves, and the less obvious, such as traditional risks tied to policy, regulation, and the shift to a low-carbon economy.
The process is relatively simple. Understand where your assets, services, and communities are exposed to risk and use that information to inform better decision-making. Done well, a CRA can become the first step in helping to prioritise action, make an investment case, and support the people and places most at risk.
What’s included in a climate risk assessment?
While there is no one-size-fits-all approach, a good CRA covers a broad range of risks, including infrastructure, natural systems, community wellbeing, governance, and the local economy. Assessments need to reflect what’s happening spatially and consider both current and future climate conditions.
This means going beyond identifying hazards to ask who is most affected, such as renters, older residents, or people already experiencing disadvantage. The best assessments combine data and local knowledge derived from engagement and collaboration. It’s also important to consider whether the CRA is for government as an organisation, or if it also covers the wider community. Your approach should be aligned with international and interstate risk management processes and frameworks, including:
- ISO 14090:2019 Adaptation to climate change – Principles, requirements and guidelines; and ISO 14091:2021 Adaptation to climate change – Guidelines on vulnerability, impacts and risk assessment
- AS 5334:2013 Climate change adaptation for settlements and infrastructure – A risk-based approach
- Climate Risk Ready NSW
- Australia’s National Climate Risk Assessment
Many of these assessments include risk ratings to help understand the degree of change, as shown in the example below. The domains are sources across the following areas: built, social, natural and economic.