This refers to the risks resulting from climate change which can be event-driven (acute) or longer-term shifts in climate patterns (chronic) that may cause direct damage to assets or indirectly through the disruption of supply chain. Acute physical risks include floods, typhoons, droughts, wildfires, earthquake. Chronic physical risks include changes in precipitation and extreme weather variability, rising sea levels and chronic heat waves.
Ladies and gentlemen, there is a sound business case for sustainable finance and this is gradually gaining traction. 3/4  BIS central bankers' speeches  At present, Philippine banks are getting more involved into green finance, issuing green or sustainability bonds in order to fund and refinance renewable energy and energy efficiency projects, green buildings and other green assets.