Physical Climate Risk: What Mining Companies Need to Know Under AASB S2

Physical climate risk under AASB S2 goes well beyond identifying floods, heatwaves, drought and storms. A useful assessment needs to show how acute and chronic climate risks could affect the business, its mine systems and dependencies, financial outcomes and climate resilience. In this video, I explain what physical climate risk means in practice for mining companies and how to connect climate hazards with the systems, controls and business consequences that matter. We cover: what AASB S2 means by acute and chronic physical climate risk practical mining examples including extreme rainfall, heat, storms, water scarcity and closure how climate scenarios frame probable future physical effects what physical-risk work needs to cover under AASB S2 why roads, rail, ports, power and water dependencies can matter as much as owned mine assets how to trace climate change through mine systems and controls how operational consequences connect to financial effects how physical risk feeds into climate resilience, monitoring and disclosure A key point is that a climate hazard is not automatically a business risk. The useful pathway is: Climate change → hazard → mine system → controls → operational consequence → financial effect → disclosure For mining companies, this means understanding whether the systems and controls that work today will remain effective under plausible future climate conditions. This video is part of the Sustained Systems series on practical physical climate risk for mining and implementation of AASB S2. Practical resource: I’m developing a step-by-step physical climate risk framework for organisations working through this process. Details/resources will be linked here as they become available. Related videos: Physical Climate Risk Assessment: A Practical Framework for Mining Companies Climate Scenario Analysis Under AASB S2 What Is Climate Resilience? A Practical AASB S2 Explanation About Sustained Systems Practical physical climate risk for mining — connecting climate scenarios with mine systems, controls, operational consequences, financial effects, resilience and AASB S2 disclosure. This content is general information and does not constitute legal, accounting, engineering or assurance advice.